Why Labor’s $392 million Industry Growth Program sounds familiar
Industry Minister Ed Husic has announced a new grant program for SMEs called the Industry Growth Program. But it sounds very familiar.
The Albanese government has officially launched its $392 million Industry Growth Program, which is aimed at aiding startups and SMEs in their commercialisation and growth efforts.
The government first announced the program in its May Budget, which stated the program’s funding would be distributed over four years, followed by $79.2 million for each subsequent year.
According to a report by the Industry Innovation and Science Australia Board, there is a pressing need for the federal government to identify businesses that possess both the need and the risk appetite to innovate and offer new products and services.
The report emphasises the importance of converting Australia’s strong research performance into commercial successes, thereby contributing to a diversified economy and the creation of well-paid jobs.
The announcement by Minister for Industry and Science Ed Husic draws a line between this report and the announcement of the Industry Growth Program.
According to Minister Husic, the program, which falls under the National Reconstruction Fund priority areas, will include a number of support measures for SMEs:
- Matched grant funding, ranging from $50,000 to $5 million to eligible startups and innovative SMEs; and
- Advisory services through a national network of expert business growth and commercialisation advisers, focusing on investment seeking, market testing, business models, and networking.
According to the announcement, businesses will be able to start applying for funding in “early” 2024.
“The Industry Growth Program is designed to commercialise great ideas and know-how, build stronger Australian businesses and put them on a pathway for potential support by the National Reconstruction Fund,” Minister Husic said in a statement.
“Our government knows Australians want our country to be a nation that makes things, and we are determined to make that happen.”
Our view: similarities to the Entrepreneurs’ Program
What’s particularly interesting about the Industry Growth Program is that it sounds quite similar to the Coalition’s Entrepreneurs’ Programme. That program was first announced as part of the 2014-15 federal budget, under the Abbott government, and subsequently replaced with the Innovation Investment Fund and Commercialisation Australia.
The previous scheme offered a mix of mentorship and grants for small business owners, much like the Industry Growth Program. Originally it was separated into three streams: Accelerating Commercialisation, Business Management and Research Connections (later rebranded to Innovation Connections).
After a few years, the program was changed, with delivery being enacted through big business ‘delivery partners’ such as Deloitte, i4 Connect, Ai Group, Business Australia, Business SA and the Darwin Innovation Hub. This eventually brought quite a deal of controversy to the program.
In September 2021, the Australian National Audit Office (ANAO) began investigating the program’s contract procurement and management processes. Its eventual report found that $160 million worth of these contracts were “deficient in significant respects” and that the design of the procurement process didn’t comply with Commonwealth Procurement Rules.
“The ANAO found that incumbency advantages were not transparently managed, and that these companies were given a competitive advantage as they were provided with information about the redesign of the program,” the ANAO report reads.
There’s a lot more to what happened in these findings, and we have that full story here.
The Entrepreneurs’ Programme was eventually cut by $197 million in November 2022, before being axed earlier this year.
And perhaps this is the answer to why the Albanese government has released a new funding program that sounds so similar to one that already existed.
While the Entrepreneurs’ Programme did help a good number of SMEs in Australia, it was carrying with it a great deal of baggage leftover from the previous government.
Still, the timing is interesting.
This news comes just weeks after SmartCompany discovered the third round of the Boosting Female Founders program, which is run out of the same department, may be pushed back to 2024.
This is the third time it has been delayed, with some applicants being left to sit on matched funding for between 12 and 18 months. As we reported, communication as well as delivery has been reportedly poor with that program. This may leave some wondering if the same department will be able to adequately deliver a new one.
SmartCompany contacted Minister Husic’s office for comment but did not receive a response in time for publication.
