[inopinatus]

The left-learning government is not supportive of startup business. And the economic indicators are not good.

Notable issues include

High income earners cannot offset business losses, thus deterring entrepreneurs. IR protections intrude on flexible working. Border protections make labour import difficult, despite the lack of a critical mass for skills. Government spending is high (although less than in the US), at 34% of GDP, leaving less on the table for investors to slosh around. This is set to grow as the population age pyramid inverts. Productivity is low. The only thing keeping growth competitive is the resources sector. This is probably an economic time bomb. Banks are massively risk averse and unwilling to lend, although the problem is not as severe as in the UK. Business failure is perceived by many as personal failure rather than a learning experience.

The current government is essentially the political branch of the unions. They'd much rather prop up the dying manufacturing sector. Unfortunately there is no credible alternative party.

If Australia is really unlucky then the ticking productivity bomb will explode along with the demographic inversion, causing a welfare crisis, a debt catastrophe, and probably a major recession.

None of this prevents anyone from having a crack.

[femto]

> Business failure is perceived by many as personal failure rather than a learning experience.

I'd content that Australians' bias isn't against failure, but against making other people wear the cost of your failure.

The reason some failed businesses are held against owners, is because the owners didn't make sure there was enough in company to pay the workers their entitlements (salary, leave and superannuation) when the doors shut. While the typically still wealthy owners hide behind the limited liability of their company, the workers pay a cost they can ill afford. A failed company that meets its obligations to its employees will be admired for "giving it a go".

[inopinatus]

Business is not a public service. Limiting liability is essential to fostering entrepreneurship.

[caf]

Government spending as a proportion of GDP is lower than in the USA.

[inopinatus]

You are quite right. I was looking at numbers from a few years ago. I shall adjust my post. Thank you

[taligent]

a) Australia has one of the strongest economies on the planet right now. The IMF predicted that Australia would be the best performing major advanced economy in the world over the next two years.

b) Australia is on track to deliver a budget surplus which many countries would be envious of. It has one of the lowest GDP to debt ratios out of all major economies and there is no way Australia is at risk of defaulting.

c) Australia has by far the most stable, capitalised and sensibly regulated banking systems in the world. The banks are probably doing TOO well.

d) Australia has been planning for population ageing for decades and we could easily ramp up immigration. The problem is community attitudes and state infrastructure.

e) The problem with startups in Australia isn't the government or banks. It is the VCs and incubators who have this ridiculous notion that the "team is 100x more important than the idea". So we have lots of startups with great teams working on truly pointless products.

[locusm]

I can recall a case where Govt interference killed off an entire startup scene - datacasting. When Australia announced its move to a digital spectrum back around 2000 there were a bunch of us that started developing product for it, when the Gov't finally announced what content could be broadcast (childrens programmes) we closed up shop the next day. So we lasted 12 months, had major backing from the Ten Network and had working product demos. I think to a large degree the Govt at the time adopted Kerry Packers stance to keep the status quo. This is all reflected in what we have today, slightly better resolution and an EPG? Absolutely zero innovation is happening in this space as a result of the Govt.