Australians love reminding ourselves we invented Wi-Fi, the black field and the Hills Hoist. However these tales are outdated.
The challenges we face right this moment are new. Nostalgia gained’t construct the programs we have to flip our subsequent breakthrough into one thing the world buys.
No marvel we rank 68 out of 69 nations for entrepreneurship within the 2025 Worldwide Institute for Administration Improvement (IMD) world aggressive scores. Our downside isn’t expertise or concepts. It’s the system that helps them.
Too usually, concepts head offshore to be commercialised as a result of we haven’t constructed the appropriate programs, incentives or cultural settings to help them right here.
Mecca founder Jo Horgan
The EY Entrepreneur of the 12 months program has celebrated daring Australian companies from varied industries for greater than 20 years – from Chemist Warehouse which began with a single retailer 25 years in the past and now operates over 500 shops nationally, to skincare chief Mecca, which started in founder Jo Horgan’s Melbourne front room.
These companies present us that nice concepts can come from anyplace. However turning them into worldwide success tales with world influence takes greater than smarts and grit.
It additionally takes capital, functionality and the boldness that Australia is the very best place to develop.
Tall poppies, quick imaginative and prescient
Ambition nonetheless makes Australians a little bit uneasy. Whereas different nations have a good time risk-takers, we have a tendency to chop them down. That mindset dulls our urge for food to attempt, to fail—and in the end, to construct one thing higher.
We frequently undervalue those that forge their very own path or see entrepreneurship as a pressure for progress.
Take David Bussau, an EY Entrepreneur of the 12 months alumnus, who has helped over 7.5 million households entry microfinance in creating nations via his work with Alternative Worldwide Australia.
Entrepreneurs don’t simply construct companies—they construct what’s lacking. From local weather options to group finance, they fill the gaps that governments and enormous firms usually can’t. That makes entrepreneurship not simply priceless, however important to our nationwide infrastructure.
Pegged again by coverage
Australia ranks eleventh globally for worldwide funding, in line with IMD – so capital isn’t the problem. Latest offers in knowledge centres, property portfolios, and infrastructure present that buyers proceed to see worth right here. What’s missing is the appropriate regulatory surroundings to assist native concepts develop and scale.
That begins with tax reform and reducing crimson tape.
In its submission to the latest Financial Reform Roundtable, EY Australia outlined three near-term reforms that might make a significant distinction:
Repair the R&D tax system. Make all offsets refundable, take away outdated caps and modernise eligibility to replicate how innovation actually works – notably in productivity-boosting applied sciences.
Assist small enterprise cashflow. Present quarterly or semi-annual refundable credit for corporations underneath $20 million in turnover to allow them to reinvest in development.
Encourage onshore commercialisation. Introduce an mental property (IP) tax incentive, used successfully throughout Europe, to stop Australian-developed IP from flowing offshore.
ResMed, based by Dr Peter Farrell, is one among Australia’s most profitable medical expertise corporations. ResMed’s transfer to the US reveals that even our brightest concepts will go away if we don’t construct the programs to maintain them right here.
The reforms above are some sensible methods to cease Australian innovation from leaving our shores and begin incomes our place as a very intelligent nation.
However we’d like one other massive change …
Rewiring the nationwide mindset
Right here’s the true kicker: the IMD index relies on notion, not efficiency. It displays how enterprise leaders view a rustic’s potential.
Alongside our poor rating in entrepreneurship, Australia positioned 62nd for company effectivity, sixtieth for workforce productiveness, and 54th for digital expertise adoption.
This paints an image of a enterprise tradition that undervalues initiative and innovation, resists danger, and settles for the established order. This isn’t a start-up downside – it’s a programs downside.
The Australian Authorities’s response to the Financial Reform Roundtable should problem how we take into consideration and help entrepreneurship. As a result of Australia doesn’t want extra inventions- we have already got the concepts.
What we’d like is a system that doesn’t go away them hanging.
Selina Brief is managing companion, shoppers & industries, at EY Oceania.
