Entrepreneurship in Australia: Factors Driving and Hindering Growth

Running Head: ENTREPRENEURSHIP
Entrepreneurship
Name of the Student
Name of the University
Author Note

1ENTREPRENEURSHIP
Australia plays a crucial role in accomplishing goals of the International Monetary
Fund and the World Bank that are aimed at bringing about an improvement in global shared
prosperity. One way by which Australian can enhance its economic productivity enormously
is through the construction of an entrepreneurial economy. The term entrepreneurship maybe
understood as a mindset and as a process that is directed towards the creation and
development of economic activity via risk taking ventures, innovation and creativity.
Entrepreneurs are known to identify as well as pursue opportunities that lead to the
production of large-scale economic productivity (Barett 2016). If Australian prosperity is to
be sustained and if sustainable economic growth is to be achieved by the country over the
long term, then the government needs to concentrate on the establishment of an economy,
which greatly encourages innovative and enterprising initiatives (Douglas 2015). This essay
discusses the reasons how and why entrepreneurial activity is vital for the growth of the
Australian economy. It also analyzes the factors that assist as well as obstruct the process of
entrepreneurship in Australia.
Entrepreneurship is known to be a driving force behind Australia’s economic
productivity and prosperity overall. This is because entrepreneurial activities generate jobs
and encourage innovation and competition all of which are necessary components of
sustainable economic growth (Schaper et al. 2014). Business innovations fostered by
entrepreneurship for instance, can bring about advances in many different industries such as
environment, agriculture, health and education. The entrepreneurial eco-system is one that
comprises different stakeholders who are driven by varied objectives as well as expectations,
and who collectively play a role in the promotion of entrepreneurship (Gao 2015). Such a
supportive ecosystem is motivates and also assists individuals in the process of initiating their
very own start up ventures. In order to create such an environment in Australia the
government must seek private sector support. The Silicon Valley Project in Australia for

2ENTREPRENEURSHIP
instance is one that is characterized by an open and collaborative environment. The
engagement and interactions with entrepreneurs are constant and as is the engagement with
the government, universities and not for profit organizations. The economic growth that is
generated from such a space is inevitable. Experienced entrepreneurs also contribute in a
significant way to the growth as well as survival of emerging businesses. The Start-Up
Muster Survey, that was conducted in the year 2014 revealed that more than fifty percent of
the start-up owners in Australia are entirely new to this space and that they possess very little
knowledge concerning the fundamentals associated with the management of a business. By
learning about the struggles as well as the successes of existing and experienced
entrepreneurs, budding entrepreneurs feel inspired and motivated. The government of
Australia plays an important role in bringing this about through the support of conferences,
seminars and other networking events for start-up business owners and entrepreneurs
(Connolly et al. 2015).
There are a number of factors driving the spirit of entrepreneurship in Australia.
Firstly, profit expectations are on the rise and as the latest Dun & Bradstreet statistics have
revealed, optimism is quite high among most business organizations in Australia as far as
profit levels are concerned. The index of the company’s profit expectations has in fact
jumped quite massively by more than hundred and ten percent since the June quarter in 2016.
The newfound ambitiousness on the part of business people in Australia has led to a huge
growth in entrepreneurship. More and more people with good business acumen are eager to
invest their money in enterprises that are likely to generate good returns for their investments
(Pearson and Helms 2013). The risk taking and adventurous spiriting of an entrepreneur is
something that can be detected with ease in most emerging business persons in Australia
today. People want to earn as much as they can and are not willing to take on risks and
liabilities like loans in order to finance their new business enterprises. Capital investment