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Australia ranked 61/63 countries for entrepreneurship

ceda.com.au

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Re: Australia ranked 61/63 countries for entrepreneurship

#61
post #21

Earlier quoted context omitted.

Personally a big factor has been cost of living. Housing prices are out of control in Australia, especially eastern capital cities, and servicing mortgage/rent without a stable salary requires a lot of planning without a grant. The result is that unless you are able to acquire funding, you result to trying to getting something built outside of your job, which is much more difficult to pull off successfully with the l…

Australia's population has always been concentrated around the capital cities with good services and reasonable facilities. Rural centres have been growing, but due to reduced services, remoteness and in some cases climatic issues have not been attractive as homes for businesses that are not based on the surrounding industry. In the capitals the cost of housing in inner suburbs (say 1 hour commute) have increased by…

Yes completely agree.

- The entire housing market is ripe for disruption, especially if we don't want to see a lot of younger people living out of the back of cars or vans.

What kind of disruption are you referring to here? Policy level (I agree) or something else? Curious to hear your thoughts on this.

Re: Australia ranked 61/63 countries for entrepreneurship

#62
post #17

Australians only know how to write grant proposals, not much else.

Though grants are smaller here than in the US, they're fairly numerous compared to the # of groups applying for them. We're using grants to get us farther before turning to VCs.

Just a joke, I have far worse to say about the people of my own country.

Re: Australia ranked 61/63 countries for entrepreneurship

#63
post #18
post #6

Australians: Do you think it’s cultural, economic, or policy?

All three. Culturally, tall poppy syndrome prevents successful people from showing their success, and it is seen as a massive problem to fail. These two things alone make up a pretty chilling force. You have few good local VCs (though maybe I'm out of the loop), a tiny stock market that doesn't "get" tech and a high cost of living/wage expectation. At a policy level our economy's geared to property so what money ther…

I don't see the "Tall Poppy syndrome" thing so much anymore. People don't get "cut" simply for being good at what they do. I see it as a combination of:

- smack talk. Which if you are that good in your game you will expect.

- an assumption you screwed over someone - or many people.

You have to demonstrate you are not an arsehole. Until then, if you are successful, it will be assumed you probably are.

Re: Australia ranked 61/63 countries for entrepreneurship

#64
post #6

Australians: Do you think it’s cultural, economic, or policy?

Cultural and economic.

We were once described as the "lucky country" which was used to encapsulate advantages Australia benefited from naturally, like distance from problems elsewhere in the world, great weather and natural resources. The origin of that label was a 1964 book The Lucky Country by Donald Horne where the author points out that:

Australia is a lucky country run mainly by second rate people who share its luck. It lives on other people's ideas, and, although its ordinary people are adaptable, most of its leaders (in all fields) so lack curiosity about the events that surround them that they are often taken by surprise.

Horne observed that Australia "showed less enterprise than almost any other prosperous industrial society."

When I invented the phrase in 1964 to describe Australia, I said: 'Australia is a lucky country run by second rate people who share its luck.' I didn't mean that it had a lot of material resources … I had in mind the idea of Australia as a British derived society whose prosperity in the great age of manufacturing came from the luck of its historical origins … In the lucky style we have never 'earned' our democracy. We simply went along with some British habits.

These quotes hopefully show the underlying Australian attitude through a 1964 lens. All these criticisms are roughly speaking true, though the quality issue is not one of them. Australians can achieve high levels of quality and precision when needed, but it depends on what's 'needed'.

The book The Australian Ugliness by Robin Boyd from 1960, also describes a difficulty in Australians performing economic tasks like Art that are not strictly speaking useful or tasks which have risks outside the normal business mode.

Most Australians decline to recognize the patronage in the British and American attitude in such enterprises as Vogue Australia or the Holden car, and do not wish to be reminded of the facts that their country is still known abroad as an artistic and intellectual desert, and that they themselves would never be taken seriously without their denying to some extent their Australian upbringing and background, and that highly talented Australians in any of the non-useful fields of art or science have to face a dramatic decision early in their careers. They can stay here in easy-going comfort with their talent and their frustrations both working at half pressure, or they may wrench themselves from their own country in order to develop themselves.

The necessity to leave Australia to achieve "full pressure" artistic or talented work, is the most important part of his criticism.

Passionate, heart felt, anger and fear driven action you can see in the Americas, does not result in economic activity over here in the same way. Passion and "whims" are more likely to guide an Aussie into the desert, loose and lost in impotent landscape that cannot form a feedback loop to success.

There are no Great Plains to manifest destiny across. From day one of the First Fleet landing in Australia, creating a survivable colony was a hard won enterprise where getting the basics like agriculture and resources in place was filled with setback and difficultly every step of the way. The interior land may be full of mineral resources, but sustainable living areas are far fewer than needed to support flights of fancy. So we stick to rivers and lakes on the coast. A naturalistic instinct for sticking to peaceful relationships and useful business has stuck in the heart.

The kind of passionate, determined, self-motivated desire for risk taking you see in the USA for nearly any idea you can dream up, is difficult to pull off in Australia. You can't burn relationships here at the cost of a fanciful dream. You can't demand everybody serve your passion in an instant. The economy in Aus is setup to keep the useful businesses going. High-energy, fast-paced startups that need some novel and specific item delivered yesterday, or thousands of man-hours of overtime demanded in the moment to solve a novel problem, is going to struggle badly. The government's stability, centralization and influence over the culture, causes an attitude of wait-and-validate to novel problems and otherwise sticking to tried and true conventions.

The USA has a massive advantage in startups over the rest of the world, it can run them like an economic war. Australian startups are more frequently nurtured into existence, if at all, and have a more narrow window of actionable appeal to locals.

If you want to innovate you have to go overseas, as can be seen with the international Aussie successes and all the local small startups that make it big when bought out by American companies or move operations overseas. If you want to re-implement a tried and true idea into a solid and safe business, you do it in Australia.

Re: Australia ranked 61/63 countries for entrepreneurship

#65
post #29

Earlier quoted context omitted.

As an immigrant to Australia, the dream is now being able to rent it. Cannot say that I feel that there is tall poppy at work, things can be quite creative and competitive. Schools do give that feeling of subdued expectations. I’d say education is the key factor for subpar performance, with very limited focus on academic achievement and inter generational education segregation partially built into the system. Austral…

> the dream is now being able to rent it I'm not sure that's the dream. For me it's a massive cause of anxiety and recurring stress. I've been renting for my entire adult life in NSW. Despite NSW (and Australia in general) having pretty decent tenant protections - it's getting increasingly difficult to find a landlord/real-estate agent who isn't trying to just outright screw their tenants, because they can get away w…

I was tongue in cheek. I was just issued a notice to vacate with no grounds a week ago, so believe me I am with you. And no, apparently tenant protection is not decent at all. European countries are much better in tenant protection.

Re: Australia ranked 61/63 countries for entrepreneurship

#69
post #6

Australians: Do you think it’s cultural, economic, or policy?

Cultural and economic. We were once described as the "lucky country" which was used to encapsulate advantages Australia benefited from naturally, like distance from problems elsewhere in the world, great weather and natural resources. The origin of that label was a 1964 book The Lucky Country by Donald Horne where the author points out that: Australia is a lucky country run mainly by second rate people who share its…

So in short, we are too comfortable to need the dog eat dog cutthroat start-up mentality because it's never been required?

I think this is a fair comment.

For me, being a wage earner, I have to date been able to have a pretty decent middle class lifestyle without having to scheme, hustle or con anybody and I take a pretty dim view of those that do. But that is changing. As others have pointed out, it's now almost impossible for the average wage earner to aspire to home ownership, it's hard enough to even find a place to rent. Cost of living is going through the roof, and many are discovering that that social safety nets that they thought they could rely on may not be big enough when a significant proportion of the population can't earn enough to both house and feed themselves.

We have a younger generation who are massively disaffected. They know their futures has been sold off and they are not happy. Political shifts are starting to rattle the establishment with an understanding that just doing the same thing is no longer good enough. Recent elections have telegraphed the changes that are coming.

Re: Australia ranked 61/63 countries for entrepreneurship

#70
post #61

Earlier quoted context omitted.

Australia's population has always been concentrated around the capital cities with good services and reasonable facilities. Rural centres have been growing, but due to reduced services, remoteness and in some cases climatic issues have not been attractive as homes for businesses that are not based on the surrounding industry. In the capitals the cost of housing in inner suburbs (say 1 hour commute) have increased by…

Yes completely agree. - The entire housing market is ripe for disruption, especially if we don't want to see a lot of younger people living out of the back of cars or vans. What kind of disruption are you referring to here? Policy level (I agree) or something else? Curious to hear your thoughts on this.

The concept of housing is changing.

Many retired and near retired are selling up their houses and taking to the road permanently in caravans and finding that as long as they are careful their costs are vastly reduced and as long as they don't travel too far and burn too much fuel. This option obviously has limitations and is dependent upon health and the ability to fund the equipment required, however for many it's a way of spending a healthy retirement whilst also feeling like they are achieving something. The added bonus is that these people are spending time and money in more remote areas, providing much needed income to local businesses. Remote area councils, understanding the need are providing places for these Grey nomads to free camp at little or no cost. Facilities may be provided, but most of the travellers carry everything they need with them, just needing somewhere to park.

There is currently a movement amongst younger people towards "Van Life". Unlike their older brethren they are not normally running around in caravans, but tend towards self contained vans or small busses. They are taking up a nomadic lifestyle moving between jobs as they become available, many servicing the needs of the Grey Nomads. In a very pragmatic way, this is a way of moving "homeless living out of a car" into a lifestyle choice.

I can well imagine how a young employed person or couple, faced with oppressive housing costs could decide to live in a small van in the city, moving around each day or two and with a bit of stealth living from their vehicle.

This is what is happening now, and at the moment, it's not causing too many problems and in fact with regard to the Grey Nomads is helping to move money into remote areas.

So what does the future hold...

We're going to see more and more people, young and old being forced to hit the road, we're going to see an increase in a nomadic workforce, we're going to see the facilities (free camps) provided in remote areas become more stressed as more and more people use them, resulting in calls to shut them down. Now we have a bunch of people on the road with limited funds and no legal place to spend the night.

So what is needed?

Younger people need a roof over their heads. they need somewhere to store their goods and cook their meals. They want safety and some degree of comfort. They want flexibility of being able to move accommodation easily as and when jobs or life requires. The need access public transport and services so that they can get and keep their jobs.

They don't need 5 star accommodation.

At the moment the options for a young person are: Live with their parents, Life with their friends in a shared house, Live in a rented room with somebody else, Rent a unit, Rent a house, live out the back of their car/van as described above.

Most of these are starting to be, or are already not affordable (or even accessible) to young people unless they are very lucky or earning a high wage.

Given that the traditional 4 bedroom brick veneer on a 1/4 acre block is not even a pipe dream for most younger people what are the other options.

Seems to me that there is a lot of inner city office space that is currently massively under occupied. In most cases these spaces are designed to be easily remodelled and could be turned into suitable accommodation. You do need to be concerned about not turning these places into ghettos, but with a little thought I think you could provide accommodation that can be occupied on a short or long term with minimal difficulty. Done right, with a AirB&B type setup you could do it in such a way as to reduce the administrative costs.

Once you have that sorted, start looking at the nomads living a Van Life. You just need some space, maybe install some toilets/showers pay a resident to keep the place clean and charge a small rental for somewhere for people to park their caravan, car or van.

I'm sure this is not anywhere as simple as I make out, you have to deal with zoning laws, tenancy laws, insurance and compliance, but all you need is to get some example sites approved by council and a desire to have them succeed.

What is really needed is an understanding that they don't need to extract every $$ possible from their tenants, working with them to ensure that they feel respected and that they will respect the space they are living in.

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