Sydney – Inside an Economy Looking to Reinvent Itself
The Australian economy has been a standout performer on the world stage for many years, however in recent times, the economy has undergone a correction that many economists felt was well overdue. Falling demand from China for iron ore has hit the mining sector and the economy hard, the very sector that had insulated the country from the effects of the GFC. During the financial crisis, the primary factor that supported job growth, spending, and stability through these years was the mining sector. Mining has contributed more to GDP than any other sector for decades, but this has been a mixed blessing from the perspective of the growth and development of other industries, especially the fledgling tech scene.
Kick-Starting the Australian Tech Scene
It was around this time that the wheels of change started to turn and Australia’s tech and startup industry rose to prominence. Today, Sydney is emerging as one of the world’s leading startup cities with initiatives in place that will make Sydney a world-class tech hub.
It wasn’t always this way though. In 2008, the infrastructure wasn’t in place to raise money, there was little to no investment in startups, and there was only a small tech community with minimal SaaS products and no media coverage.
Slowly, the community and infrastructure available to help startups thrive have emerged. Incubators and VCs began to set up shop in Sydney, and with the support of Government tax credits a more free-flowing scene has emerged. Access to funding and mentorship are essential ingredients in any tech hub, and with at least half a dozen incubators operating in Sydney, young startups now have the essential elements to succeed.
Where is Sydney Headed From Here?
Sydney was ranked 12th in the world in 2012 and it recently fell to 16th in startup cities. The aim is to make Sydney a global tech leader, and groups like the not-for-profit TechSydney, created by the ‘godfather’ of Sydney’s startup scene Dean McEvoy, aim to address the biggest issues facing the industry by getting big and small companies to work together and not in isolation.
The future looks bright and Sydney is a shining light in reshaping the Australian economy.