Do you need a HandUp or a HandOut?

hand upI was interested but not surprised to hear lots of outrage when the last Australian budget announced cuts to various StartUp/Innovation/Entrepreneur finding programs.   Along with cuts in almost every area of Govt in an endeavour to get the books back in balance.

Rather than provide grants and no strings attached funding to people who have good ideas I believe the Government should be supporting in other ways.  Providing introductions and bestowing credibility and then getting out of the way is the best thing any Government agency can do.

With the exception of research and development that is not commercially viable budding entrepreneurs should not be putting their hand out but merely asking for a hand up … and this might mean helping them to cut through the red or green tape.

There are plenty of investment sources out there looking for opportunities that are at least commercially viable. But generally the want to know one thing and one thing only before they will be interested ….. Is there a customer for this and will they pay the asking price.

As such rather than wait on Govt funding, perhaps now budding entrepreneurs will do what they should always have done before starting work!!  Having identified the customer that will pay then ask for some up front payment ….  Think CrowdFunding … but failing that find an investor and tell them all about your customers.

And when it comes to investors ..

remember if you are going to rob a bank perhaps you should hold up a few service stations along the way…..

 

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