The Department of Industry, Science and Resources is looking to launch a $392 million Industry Growth Program in late 2023 - that was unveiled in the Federal Budget earlier this month.
The Industry Growth Programme is to build funded centres of support (to be self sustaining in 18 months ) and is aimed to help SMEs and startups get their ideas off the ground .
The programme is aligned with the priority areas of the $15 billion National Reconstruction Fund which is expected to be operational in some capacity by the end of the year.
Industry and Science Minister Ed Husic said: “This end-to-end approach will maximise the return on taxpayers’ investments and provide a clear pathway for our entrepreneurs to turn their ideas into thriving businesses in Australia instead of overseas.”
The funded centres - providing services vs funding are expected to become self-sustaining by the middle of next year when the program concludes, although they may yet play a role in the Industry Growth Program.
The program is being funded by replacing elements of the maligned Entrepreneurs Programme, which was the subject of a damning audit last year.
The fallout of the maligned entrepreneurs programme
Jessie Wu of after work ventures shares the frustration of startups and innovators going through pain from pulling of the failed Entrepreneurs Programme.
The only certain thing for a startup is uncertainty!
“The word ‘technology’ appears 7 times in the Treasurer Jim Chalmers’ recent budget speech, but both Federal and State governments have been quietly pulling funding from programs that support innovation and entrepreneurship:
- The NSW MVP Ventures Grant which provided $200k to startups is on hold as part of a Comprehensive Expenditure Review (https://lnkd.in/eP_MwcYE)
- The Accelerating Commercialisation program which provided up to $1m in matched funding to commercialise technologies has been shut down (https://lnkd.in/ezhumCqi)
- The Entrepreneur’s Program which provided expert advice, support, and funding for startups and small businesses has closed; all staff have been let go (https://lnkd.in/ecDX4PhP)
- The Boosting Female Founders program which provided $250k - $500k to female-founded startups has frozen applications (https://lnkd.in/eg2VTtcH)
- The Manufacturing Modernisation Fund which provided up to $1m for SMEs to transform manufacturing practices with new technologies has frozen applications (https://lnkd.in/ecDX4PhP)
A new program, new Executive, new independent review committee, and new set of eligibility criteria is all very well for new governments’ desire to make their mark and cut ribbons, but it ultimately leaves startups and SMEs in the lurch.
Startups don’t have the luxury of time to wait around for governments to get their sh*t in order. Many were in the middle of (incredibly onerous) application processes, only to be unceremoniously notified the whole program was shutting down.
In a sector where uncertainty is a constant, governments are most helpful when they can provide stability - in policies, sources of funding, and tax incentives to invest in entrepreneurship.”
Has the government got the capability of choosing winners? If a founder can’t get VC - should the government back them?
There is still some great Australian Grant programmes… if you want to know more , speak to Mick or Peter at www.bsiinnovation.com.Au
The Aust Govt support in the form of R&D incentives is still one of the most generous support programs in the world.
And the EMDG export grant helps take Aussie business owners and leaders offshore.
Great insight by Kyle Bolto
Start up is not only a contest of ideas but a contest of execution and finding a way. If you can’t work this out independently of govt support I would say that’s a hard filter.
honestly, if you need government support for a $50k MVP as a startup you're not really cut out for it.
It means, you either don't have the hard skills to build something yourself, or you can't attract people who can build with you, or you can't excite yourself, your family or anyone enough to back your vision.
Everyone has ideas, not many can actually build things, it's not the governments job to fund that gap at MVP stage, in my opinion.
As a data driven founder I’m always happy to see real data to change my mind. (opinions are not data).
Roy Green - Special Innovation Adviser, University of Technology Sydney., says it potentially offers a new lease of life for the Industry Growth Centres, albeit through service provision rather than operational funding support.
The concept is that support should go to projects that would not have occurred without government intervention, rather than funding projects that would in any case have attracted private funding
will be further opportunities in the future for the much needed development of Australia’s research and innovation system.
This will be the key to creating long term growth and jobs.
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