Australia lags as StartUp Britain launches

The lack of an Australian start-up drive has been highlighted by the launch of StartUp Britain, a push by the private sector to boost entrepreneurship in the United Kingdom.

Launched in conjunction with Prime Minister David Cameron, StartUp Britain is built around an online portal, and will deliver support and advice to start-ups.

Although it has the support of the British Government, it will be funded privately by companies including Google, Blackberry, Hewlett-Packard, Microsoft and Virgin Media.

Companies will donate discounts and services such as free advertising, computer training, management mentoring and consulting, cheap insurance rates, and IT storage and processing deals.

Cameron said in a statement StartUp Britain will be led by entrepreneurs for entrepreneurs because the “best people placed to help business are the people who do business”.

“If you’ve been turning over a good idea for years, now is the time to make something of it. If you’re working for a big firm, but know you could do a better job on your own, now is the time to make the leap,” Cameron said.

The Government has also set out a series of measures to help inspire, support and grow business start-ups, including the creation of enterprise societies in every university to develop the ambition and skills for enterprise.

StartUp Britain comes just two months after US President Barack Obama launched Startup America, aided by private investments but also backed by government funding.

The initiative aims to encourage the private sector to support and expand entrepreneurship and mentoring programs, and to support non-profit organisations looking to expand.

Startup America has already attracted criticism, with claims it places too much emphasis on high-growth firms while neglecting more traditional mum-and-dad operations.

Phaedon Stough, co-founder of Australian investment network Innovation Bay, believes StartUp Britain and Startup America are good ideas, likening them to Commercialisation Australia.

A government initiative, Commercialisation Australia assists researchers, entrepreneurs and innovative companies to convert ideas into successful commercial ventures.

But Stough says while Commercialisation Australia is a good starting point for start-ups, it is the Government’s role to support – rather than lead – entrepreneurship in Australia, arguing the private sector could step up its efforts.

“[President] Obama really recognises the importance entrepreneurs play. In Australia, we seem to respect big business much more so than small business,” Stough says.

“Big companies struggle to innovate, which is why they acquire smaller companies. We need to bridge the gap between big business and innovators from a mentoring point of view and from an acquisition point of view.”

Doron Ben-Meir, chief executive of Commercialisation Australia, agrees both StartUp Britain and Startup America are good initiatives, but voices concern over the sustainability of these models.

“The issue with all these things is what holds them together in the long-term. Is it a sustainable model that will continue to work over time or will these [private companies] find their deal or two and move on?” he says.

Ben-Meir says it can be difficult for start-ups to transition from an R&D environment to a business environment, particularly as there is often a reluctance on the part of large companies to provide start-ups with early stage venture capital.

“The distance between that space needs to be addressed more systematically so there’s a continuum,” he says.

Dominic Carosa, founder of Australian venture accelerator Future Capital Development Fund, says any initiative that provides mentoring and support to start-ups is good for the industry and good for the country, stating he would like to see a model similar to Startup Britain launched in Australia.

“There are thousands of start-ups popping up every week across Australia, so any kind of initiative that fosters assistance is positive from our perspective,” he says.