Australia – State of the Startup Nation

I was discussing my side-project with Lane Burdett (@laneburdett) from “My Main St.” and Web DIY and Business DIY when the conversation turned towards the state of the nation with regards to start-ups. “How come despite excellent education, healthy economy and plenty of opportunities Australia still struggles with regards to startups, unlike the US?”, I asked. Here are some of our thoughts (on technology startups):

1. Given the population of the country and the rural/urban divide, technology based startups would struggle to maintain a sustainable business.
2. Although the education offered here is good, it’s far from world class like in the US, which tends to be at the forefront of technology research.
3. The nation is culturally relaxed and laid-back in general and people tend to be happy to work for the man and raise a family and ultimately own a home.
4. The bright few end up succumbing to brain drain to make it big since there are limited opportunities here.
5. The whole country seems to be offering services. 74% of the Australian GDP comes from the service industry.
6. Australia still remains a nation where giants roam the earth i.e. large organizations own a major chunk of the market and command people’s respect.
7. Technology diffusion tends to be a lot slower in Australia compared to the US.
8. Given the real-estate prices: property and advertising it’s no wonder a startup would struggle here (unless ofcourse the team were extremely creative)

We aren’t the only ones thinking this, StartupSmart has laid out 10 reasons why Australia need to be Startup oriented.

What are your thoughts on the matter? Let’s discuss.