Directors call for start-up support

Full support should be provided to start-up companies and research and development (R&D) organisations, the 2014 second half Director Sentiment Index (DSI) has revealed. 

The study found that 97 per cent of the 501 directors responding to the Australian Institute of Company Directors' survey, said the R&D industry should receive some, or full, financial support from the federal government. Ninety per cent believed the same level of support should be given to start-up industries. 

Commenting on the study results, Doron Ben-Meir MAICD, director of Entrepreneurs’ Infrastructure Programme at AusIndustry, said greater government support for start-up businesses would enable growth, increase Australia’s GDP and create a more sustainable industrial base.

“Innovative start-ups face the twin challenges of both starting a new business and developing a product/service set that breaks new ground. Combine this reality with being domiciled in Australia – a subscale market, remote from the major markets of the world – and the degree of difficulty begins to crystallise,” he said.

“Given the challenges and the potential upside, it makes sense for government to provide early stage support to increase the probability of success,” he added.

In contrast, 58 per cent of directors believe industries facing severe market decline should receive no financial support from the federal government.

Directors also showed broad support (59 per cent) for financial investment in companies operating in niche markets with high barriers to entry, however, 36 per cent also believed these companies should not receive any financial support. 

For a copy of the full report, please click here.