It was estimated that 13.1% of the Australian adult population from (18–64) were actively engaged in starting and running new businesses in 2014. This equates to 2.3 million early-stage entrepreneurs. With this Total Entrepreneurial activity Australia is amongst the highest of all developed countries.
Australia outperforms most developed countries on most indicators that represent the quality and economic impact of its business start-ups, including growth aspirations, number of opportunity-driven start-ups and innovativeness. Some 3.8% of adults or 553,000 new businesses expect to create at least six new jobs in the next five years.
However, Australia’s job creation expectations fall because fear of failure in Australia. Some 39.2% of Australians who report good opportunities to start a business also reported fear of failure would prevent them from doing so. The rate of business discontinuation is at a similar level to other developed countries. Fear of failure remains comparatively high in Australia, at 40%, compared with the average of other developed economies of 38% as a reason for not wanting to start a business. Hence, while entrepreneurship is currently comparatively strong in Australia the future outlook shows some signs of weakening.
Figure 2: New Businesses and Unemployment from 2012-2014
It remains an open question as to why and how it can be improved in the sense that we can decrease the unemployment and increase the new business
This presents policymakers, support agencies, and educators with opportunities for providing skill and knowledge development that is specifically directed towards new venture start-ups.
At present Australian Government is helping the unemployed by giving them new start allowance. By looking at the above plot it can be easily suggested that unemployment will rise with time.
Our first proposal to Australian Government is to get the unemployed skilled people connected with the new businesses or startups. In this way there will be a support for the new businesses and a motivation to the unemployed skill people to look for opportunities in the market for new business. Connecting people with similar skills for help can result joint ventures or business partnerships.
Our second proposal to Australian Government is to get the unemployed unskilled people connected with the new businesses or startups. In this way there will be a support for the new businesses and a motivation for unemployed unskilled person to upskill themselves in order to remain in jobs.
Everybody in a new startup wants to keep the running cost of the business low. Now we are also suggesting this at the same time that Australian Government shall continue to provide the new start allowance. This will be a joint venture between new startups and Australian Government.
By doing this new business get the help they want in the form of helping hands. The unemployed person with little or no skills learns the new skills. The unemployed person with similar skills join hand in hand with the new business owner of similar skills.
The Australian Centre for Entrepreneurship Research GEM Australia- 2014 National Report
Australian Bureau of Statistics
Counts of Australian Businesses, datacube: Excel spreadsheet, cat. No. 8165.0 (data available on request)
Note: For the purpose of this analysis, there is a 6 month lag between IP indicator data (reported by year) and business churn data (reported by financial year). This is due to differences in data collection by various agencies.
Population by Age and Sex, Regions of Australia, 2011, data cube: Excel spreadsheet, cat. No. 3235.0
Census of Australia 2011, data for Education by SA3 region was extracted using TableBuilder
Australian Statistical Geography Standard (ASGS): Volume 5 - Remoteness Structure, July 2011
Correspondence, Statistical Area Level 2 2011 to Remoteness Area 2011, cat. No. 1270.0.55.006
Correspondence, Postcode 2011 to Statistical Area Level 3 2011, cat. No. 1270.0.55.006
Department of Industry and Science
Business Research and Development Expenditure ($)
Self-reported firm expenditure from Department's administrative data.
Intellectual Property Government Open Data (2016)
Locations of university campuses in Australia, updated April 2015
Locations of TAFEs in Australia, 2015
Department of Employment
Employment Research and Statistics, Small Area Labour Market, released 4 March 2016
Unemployment estimates are produced by apportioning the level of unemployment at the SA4 level, as published by the ABS, across each of the SA2s within that region in accordance with the distribution of Centrelink Newstart and Youth Allowance (other) beneficiaries, benchmarked by ABS unemployment estimates by age, sex and marital status at the Greater Capital City Statistical Area (GCCSA) level.
ABS Labour Force Survey data by ABS Statistical Area Level 4 (SA4). The ABS Labour Force Survey samples private and non-private dwellings (approximately 26,000 households) across Australia and covers about 0.32 per cent of the population. More details about the methodology underpinning this survey are included in the ABS publication Labour Force, Australia (cat. No. 6202.0)