Why start-ups are vital for our economic future

Why start-ups are vital for our future

Written by John Barilaro, Deputy Premier of New South Wales, Minister for Skills, Small Business, and Regional NSW

Many innovations wouldn’t make it to market without the drive provided by our startup sector.

Innovative startups do more than just develop new products.  Between 2008 to 2014, over 1 million new jobs came from just 6 per cent of businesses - new or growing SMEs.

The NSW Government has thrown strong support behind growing our state’s startups.

CeBIT-365-john-barilaro.pngJust a 20-minute walk from the International Convention Centre, the Sydney Startup Hub has now been officially opened to secure our position as the Startup State. 

The Sydney Startup Hub is an Australian first that rivals similar projects around the world.

It will bring 2,500 people together under one roof providing networks, skills, funding and leadership.

Startup entrepreneurs will be able to connect with talent, mentors and investors to help create sustainable new job-creating businesses.

This complete innovation ‘ecosystem’ will launch new companies and solutions we are yet to dream of.

In the same way mobile phone apps were unknown 15 years ago, new technologies will change our world in many areas, from financial and medical technology to transport.

The Sydney Startup Hub has already attracted an impressive range of business incubators and accelerators.

Microsoft’s ScaleUp program is there, one of only eight locations in the world. We also have local innovation superstars like Stone and Chalk, Tank Stream Labs, The Studio and Fishburners and the many startups they support.

Thousands more will be attracted to the Sydney Startup Hub through its community and event spaces. There will be seminars, launches and workshops. There is a Regional Landing Pad to accommodate visits from entrepreneurs from across regional NSW.

The NSW Government-backed Jobs for NSW is on-site to offer startup support including grants, loans and loan guarantees.

NSW is already Australia’s startup capital with 44 per cent of startup founders. Sydney is ranked in the top 20 startup ecosystems in the world but we would like to see it ranked in the top 10.

The Sydney Startup Hub joins a cluster of innovation spaces across inner Sydney including Sydney University, the Australian Technology Park, the University of Technology and Sydney School of Entrepreneurship at Ultimo.

Jobs for NSW is also working to develop startup capacity through an AgTech cluster in Armidale and a health precinct cluster around Westmead.

Research shows jobs in high-performing clusters grow at more than double the state average and create higher-paying jobs.

Also, small businesses in clusters are 21 per cent more likely to survive than those outside.

The NSW Government has a goal to create 1 million new jobs by 2025. We have already created more than 410,000 since 2011.

Startups are one of the keys to reaching our jobs goal.

Across Australia, 115,000 jobs have already been created in app development – just one slice of the tech sector – where none of these jobs existed 10 years ago. Half of those jobs were created in NSW.

NSW has the top-performing economy in Australia and our startup ecosystem is estimated to be worth $70 billion to our economy.

Our support for startups will help cement our reputation as the country’s go-to place to start and grow a business.