Deepening the impact: The vital role of early-stage entrepreneurship in NSW

The NSW Innovation Blueprint is aimed at enhancing the innovation ecosystem in the state by focusing on key areas such as stimulating new ideas, increasing investment, fostering industrial innovation, and expanding international market access. It is a strategic initiative inviting feedback from stakeholders to shape policies and actions that support economic growth and innovation across the state

In the dynamic landscape of NSW, the nurturing of early-stage entrepreneurship is not just beneficial but essential. The state's innovation blueprint is at a critical juncture, where the support for nascent startups can lead to the development of large-scale enterprises, potentially transforming the economic fabric of the state. Drawing insights from Queensland's innovation strategy and Victoria's support mechanisms, we can outline a more profound, data-driven argument for bolstering early-stage entrepreneurship in NSW.

Strategic importance of early-stage support

The genesis of tomorrow’s corporate giants lies in today’s startups. Without a conducive environment, NSW risks not only stunting local innovation but also losing potential market leaders to other regions or countries. The vibrancy of a local startup ecosystem is often a key determinant in whether a startup stays, scales, or exits the region.

Queensland's blueprint, which includes comprehensive support for startups at various stages, showcases the importance of a strategic, long-term approach to startup ecosystem development. This holistic support ranges from seed funding initiatives to growth accelerators, illustrating the value of government backing in the entrepreneurial life cycle.

Learning from Victoria's model

Victoria’s proactive approach in supporting tech startups and innovation hubs offers valuable lessons. The state’s investment in innovation precincts and tech-focused education programs demonstrates a commitment to fostering a pipeline of talent and innovative enterprises. Such initiatives not only attract investment but also create high-skill jobs, driving forward the state’s economic agenda.

By emulating aspects of Victoria’s strategy, NSW can enhance its attractiveness as a hub for innovation, encouraging both domestic and international startups to establish and grow their businesses within the state.

Economic multipliers of early-stage investment

Investing in early-stage startups yields significant economic multipliers. These companies drive innovation, enhance competitiveness, and contribute to job creation at a rate far exceeding that of established firms.

Data from innovation ecosystems worldwide underscore that startups play a disproportionate role in net new job creation. Moreover, they act as catalysts for attracting venture capital, which in turn stimulates further economic activity and innovation.

Policy framework enhancements

For NSW to fully capitalise on the potential of early-stage startups, a refined policy framework is essential. This framework should:

• Enhance funding mechanisms: Establishing more accessible seed and early-stage funding opportunities, possibly through matching grants or co-investment funds, can alleviate the capital constraints that many startups face.

• Regulatory support: Streamlining regulatory processes and providing clear, startup-friendly guidelines can significantly reduce the administrative burden, allowing entrepreneurs to focus on innovation and growth.

• Innovation clusters: Encouraging the development of innovation precincts or clusters, similar to Queensland’s innovation hubs, can foster collaboration, knowledge sharing, and the cross-pollination of ideas.

In Fishburners, we've seen real examples of how early support can lead to significant success and increased economic value. Most startups begin with us as a small idea and grow into significant players in its sector, proving the value of early investment and guidance.

We see many enterprises within our community, expanding its operations internationally, showing the broad impact that nurturing early-stage companies can have. From our community we see regular mergers and acquisitions as well as past IPOs that have proven extremely successful, with companies such as HeyYou, Jayride, Uber CarShare (formerly Car Next Door), Mad Paws, Webinar Ninja. Fishburners has helped startups raise over $600 million in funding for startups, creating over 8,000 jobs for NSW, and educating tens of thousands of founders every year.

These stories directly reflect the goals of the NSW Innovation Blueprint, demonstrating the substantial benefits of supporting startups from the outset. Without early stage support, we simply don’t have a scaleup sector.

The NSW government stands at a crossroads, with the opportunity to significantly influence the state’s economic future through its innovation blueprint. By prioritizing early-stage startups and implementing a nuanced, supportive framework, NSW can cultivate a thriving ecosystem where innovation flourishes, businesses scale, and the economy thrives. Drawing on the successful strategies of Queensland and Victoria, NSW can not only retain its home-grown talent but also attract global innovators, positioning itself as a leading global hub for entrepreneurship and innovation. The time to act is now, with strategic investments and policies that will define the economic landscape of NSW for generations to come.

Public submissions through a survey link are sought from stakeholders in the innovation ecosystem.

A discussion paper has been developed, outlining specific areas for feedback and includes set criteria for respondents. Your input is helpful in understanding the innovation ecosystem's priorities, challenges and opportunities.

Help shape the NSW Innovation Blueprint by considering the discussion paper and responding to the questions in the online survey.