Amazon Web Services (AWS) has released the report, “How startups create a culture of possibilities”.Prepared by research consulting firm Lonergan Research and commissioned by AWS, the report reveals that Australia’s startup ecosystem is moving beyond perks like ping pong tables and office kegs, with nearly nine in 10 (86%) startup leaders surveyed agreeing that a strong organisational culture and an intentional focus on work-life balance are at the heart of successful businesses.  

The report highlights a happier and more resilient workforce as the leading outcome of a thriving startup’s culture, with the vast majority stating that it plays a critical role in their ability to grow (86%), attract talent (85%) and secure investment (85%). Underscoring this, the data also shows that as Australia’s startup ecosystem matures, leaders and their teams recognise that “grind culture” – or, a mentality that expects and encourages long hours and team availability beyond a standard work day – is not a sustainable way to run a startup for long-term growth and success.   

Tapping into the expertise and deep experience from more than 500 founders, leading investors, advisors, and startup ecosystem influencers, the report explores the critical ingredients for, and outcomes of Australian startup culture. It aims to provide guidance to current and aspiring founders on how to build a thriving and productive company culture from day one – as well as what to watch out for.  

Perks passing their peak  

“Work perks” are often synonymous with startup culture, with ping pong tables and paid lunches routinely featuring in “best places to work” lists. However, the research indicates a move beyond these mainstays of startup team motivation, with “work-life balance initiatives” listed as the most common (47%) factor cited as critical for building a flourishing organisational culture.   

This finding is affirmed by Craig Cowdrey, co-founder and CEO of workplace wellbeing startup, Sonder, who says that workers have grown skeptical of these perks, especially when they are prioritised over more meaningful benefits. “So much of that has been recognised as not particularly relevant or determinative in an employee’s choice,” he says. “A lot of them think that it’s just to keep them working in the office longer.”  

Grappling with grind culture   

Despite the clear recognition that strong culture leads to a startup team’s happiness and better business outcomes, the research shows that the Australian startup ecosystem is still navigating some of these negative facets like grind culture, with the vast majority (93%) acknowledging that it exists. The research indicates it is typically driven by internal performance pressures (45%), perfectionism to ensure the business’s success (43%), and competition from other startups (42%).  

To move away from this, startups are beginning to take steps to minimise “the grind,” with some intentionally embedding self-care as a company value. Dr Ben Hurst, Founder and CEO of patient engagement platform HotDoc, works hard to instill this in his business, and says that striving towards balance and self-care is critical for wellbeing in a startup. Reflecting this belief, HotDoc’s values include “Take ownership,” “Always be empathetic,” and “Speak up,” which are designed to encourage team members to look after themselves, and each other. “You are doing the wrong thing if you are working in a way that is not self-sustaining,” says Dr Hurst.  

Impact on founders’ mental health: tall poppy and imposter syndromes  

The research also shines a light on the common pressures and dynamics impacting the mental health and wellbeing of founders, and outlines how some of Australia’s startup leaders are managing those personal challenges, and providing guidance for future founders to learn from.  

Two thirds of startup leaders (66%) believe tall poppy syndrome – a cultural attitude that resents, disapproves of, or condemns success – is alive and well within the startup community, with most respondents experiencing it personally (80%).   

According to leaders, this can manifest as an aversion to risk (46%), stunted career development (45%), and weakened mental and emotional wellbeing (43%). But the most common source of tall poppy syndrome is social media, with almost half stating it as the primary source (46%), as well as sentiment from Corporate Australia (35%) and the media (34%).   

Imposter syndrome is another key concern for the mental wellbeing of founders, with more than three quarters (77%) of startup leaders feeling it. Managing those feelings can be a challenge, but according to the research, the most common strategies include focusing on building resilience (28%) or taking time to celebrate success (27%).   

Some, however, do not manage it positively. A quarter (26%) simply mask it and a fifth (21%) manage it by working until they burn out. Nearly the same number (19%) indicate that they would like help managing the mental wellbeing challenges that many founders experience.   

Expert advice and insights for Australia’s future founders  

John Kearney, Head of Startups, Australia and New Zealand, AWS, said the report intends to provide practical knowledge, expert guidance, and hard-earned lessons from established founders, to support Australia’s future founders to prioritise building a strong culture in their own startups from the very beginning.   

“Full of insights and real-world experience collected through ecosystem research, this report highlights the many attributes that make startups so inspiring to us all. They seize opportunities and solve problems in innovative ways, they question societal norms and question the status quo, and they help solve some of the biggest challenges of our time by using technology to build the future. But all of this is only possible if a startup has established a strong culture that encourages experimentation and testing of ideas, quick decision making, and learning from mistakes,” said Kearney. “That’s the cultural foundation that AWS is built on, too – that’s why, for over 15 years, we’ve helped more startups launch, build, and succeed than any other cloud provider, offering the technology tools, mentorship, and technical support to enable startup founders to bring their ambitious, world-changing ideas to life.   

“While cloud computing has removed many of the traditional barriers to entry for entrepreneurs, launching and growing a startup is not an easy journey. But the rewards can be great – for the founders, the people who work for them, and society at large – so we are keen to encourage more future founders to follow this path. By highlighting the achievements of startups and the importance of culture in supporting their vision, we hope to not only accelerate their success, but to inspire the next generation to prove what’s possible.”  

Taking the first steps to starting a startup  

Are you inspired to give your business idea a go? AWS is here to help future founders take that first step, with a range of programs and initiatives to support startups. At the earliest stages, the AWS Activate program provides qualified startups with a range of benefits, including AWS credits, technical support, and training. Hundreds of thousands of startups around the world have benefitted from the program since 2013, and in the past two years alone, AWS has provided more than US$2 billion in Activate credits to help early-stage startups launch their businesses and accelerate their growth. With this help, startups are using scalable, reliable, and secure cloud services like compute, storage, database, analytics, Internet of Things (IoT), machine learning, and many others from AWS to scale their businesses. To join AWS Activate, visit https://aws.amazon.com/activate/  

Check out the rest of the research and insights in the report, “How startups create a culture of possibilities,” to learn from established Australian founders about what it takes to create a culture for success, and the key factors and considerations that have made the difference as they’ve grown.  

The Australian Business Forum (ABF) is excited to announce that CommBank SmallBiz Week will run in Melbourne from 23-25 May 2023, bringing together thousands of business owners, government agencies and industry leaders.

“Small businesses have shown extraordinary resilience and are now entering 2023 with a renewed sense of business confidence,” said Ray Evans, CEO of ABF Events. “We are proud to once again partner with CommBank and look forward to welcoming back thousands of business owners, delegates and visitors.”

CommBank SmallBiz Week 2023 will provide small businesses across all industries the opportunity to come together under the one roof to network, discuss tackling challenges and learn how to future-proof their strategies and drive business success.

CommBank Group Executive Business Banking Mike Vacy-Lyle said: “At CommBank, we recognise the vital role small business owners play in our economy. That is why we are excited to once again be a naming sponsor for CommBank SmallBiz Week, an opportunity for these entrepreneurs to connect, learn and grow. We are proud to be a part of this event and to support the success of small businesses in every way we can.”

Connecting Businesses Across Australia

CommBank SmallBiz Week 2023 will host thousands of visitors and present over 100 exhibitors over 3 days at Marvel Stadium Melbourne May 23-25, 2023. The event includes multiple B2B networking functions and Australia’s largest small business expo. CommBank SmallBiz Week 2023 will also host two major forums with interactive keynotes and industry panels featuring leading small businesses, entrepreneurs and industry thought-leaders.

The event kicks off on May 23with a black-tie gala dinner celebrating the rising champions of Australian business with CommBank SmallBiz Week’s Young Hero Awards. The awards program recognises the achievements of trailblazing entrepreneurs and business leaders 35 years and younger.

The Business Leaders Luncheon returns as CommBank Smallbiz Week’s major corporate function and focuses on the critical support required for the SME sector and the future of small business in Australia.

Rising interest rates, the cost of living and a growing number of businesses finding themselves in default of their bank loans is leading to a spike in alternative lending options.

Leading Australian financing company OptiPay has issued over $25M in new facilities since the start of this year – a near ten fold increase in new client take ons.

“We’ve had a huge spike in broker-driven enquiries as access to capital becomes more difficult for many businesses,” says OptiPay CEO Angus Sedgwick.

“Banks are becoming more risk-averse in the current climate and it’s forcing many businesses to look at alternatives to maintaining their cash flow,” he says.

OptiPay specialises in invoice financing – a revolving line of credit against unpaid invoices – to improve business cash flow.

“The majority of new enquiries have come from the agriculture, transport & logistics, mining services and manufacturing,” says Mr Sedgwick.

“Many SME’s are increasingly turning to brokers to facilitate their lending as they juggle unpaid tax debts, supply chain issues and rising inflation.”

“Our main aim is to help businesses that are going through a period of growth and we understand that there are challenges that come with that. As long as they have a good model and they have orders coming in, we can work with them,” he says.

“Any business that invoices another business for goods or services on credit terms is a good candidate for an invoice financing facility,” says Mr Sedgwick.

“Businesses can typically access up to 90% of their sales revenue within 24 hours of issuing the invoice. Unlike more traditional business loans there are no ongoing repayments back to the financier as they are repaid when the debtor makes payment of the invoice/s. The fee paid to the financier usually ranges from <1% up to 3% of the invoice value.”

“Cash flow is everything for a business and in the current economic times it’s even more important it’s maintained,” he says.

The Australian Financial Complaints Authority (AFCA) has welcomed the announcement from a major bank that it is working with telco providers to reduce spoofing scams.

“With scammers becoming increasingly sophisticated, organisations from across different industries will need to work together to combat scams and educate the community,” AFCA’s Chief Ombudsman and Chief Executive, David Locke, said.

“We are pleased to see telecommunications providers partnering with financial firms to detect or prevent scams before they cause harm to consumers.”

NAB today announced it has been working with telecommunication providers to reduce scam calls and texts impersonating NAB phone numbers.

Spoofing scams occur when scammers use readily available software to impersonate or “spoof” a bank’s contact details. At times, an SMS will appear in the same conversation thread as previous messages sent from the financial firm – tricking a customer into believing it is a genuine SMS from their bank. 

AFCA often sees complaints about bank ID spoofing scams and other fraudulent activity such as remote access, romance and investment, invoicing, and crypto scams.

In 2021-22, AFCA received 4,131 complaints in relation to scams, an average of around 340 a month. That was up 28 per cent on the previous year.

In the current financial year, this has increased to an average of 400 scam-related complaints a month.

“Industry and government are constantly looking at ways to create friction in the scams environment and reduce funds lost to fraud,” Mr Locke said.

“As well as industry-led initiatives, we also encourage people to talk to their friends and family, particularly vulnerable people they know, about the dangers of scams. The more that people are aware, the less likely they are to fall victim to scams.”

AFCA is engaging with industry, consumer groups and regulators, sharing its complaints data and insights, in the joint effort to reduce scam transactions.

NAB’s announcement is the second from a major bank in just two weeks. Earlier this month, the Commonwealth Bank of Australia announced introducing “NameCheck” technology for money transfers and caller verification via the CommBank app.    

Australian employees are demanding a new range of employee perks including wellness packages, financial discounts and access to their wages on demand as the battle for top talent continues in 2023. 

KPMG’s annual survey of Australian business leaders has found 77% of senior executives feel talent is the biggest challenge of 2023.

“Australia is currently experiencing its tightest labour market in nearly 50 years so employees currently have the upper hand in demanding extra benefits,” says Paytime CEO Steven Furman.

“Companies who don’t think ahead and outside the box when it comes to employee perks are going to get left behind in the battle for the best talent,” he says.

Top 5 employee perks for 2023

Flexible work hours

“Part of living in a pro-wellbeing society is employees want the freedom to create a working schedule that encourages balance,” says Mr Furman,

“They’re no longer interested in being restricted to a 9-5 routine and instead want to have the freedom to for example be able to attend to a personal matter in the middle of the day and make up the hours at night.”

“Offering flexibility can be a deciding factor in somebody accepting a job offer,” he says.

Time in Lieu

“The ‘act your wage’ trend on social platforms has seen a total shift in the mindset when it comes to working overtime,” says Mr Furman.

“Previously, individuals felt they needed to work overtime in order to prove themselves as valuable employees or secure promotions. These days employees are balancing mental wellbeing and are no longer content in sacrificing their personal time in the hope of a potential future benefit.”

“Employees are seeking time in lieu as compensation for hours worked overtime so they better achieve that balance.” 

On-demand Pay or Earned Wage Access

“Financial wellbeing is equally as important to employees as their physical and mental wellbeing especially with the cost of living spiralling.”

“There are a number of financial wellness solutions companies can offer and on-demand pay is one of them – when an employer gives an employee the choice as to when they’re paid – allowing them to access their wages as they earn them,” says Mr Furman.

“Being able to access your wages when you want to is commonplace in the US and the UK now and it’s just a matter of time until Australian corporates catch up with the rest of the world,” he says.

“For many employees they’re too embarrassed to ask for a pay advance when they have an unexpected expense – having the security of knowing they can access their wages when they need them without their boss knowing is a big drawcard,” says Mr Furman.

“For companies, it’s a 2 to 4 week process that requires less than a few hours of payroll and HR’s time, as the provider does all the heavy lifting.”

Wellness Packages

“A wellness package should focus on employee happiness, mental health and physical wellbeing. It’s about offering an array of health benefits that sets you apart from the competition.”

“Employees these days are looking for things like a gym membership, on-site complementary counsellor, mental health days, recreational activities, free healthcare check-ups etc” says Mr Furman.

“A happier workplace also leads to a more productive and motivated workforce,” he adds.

Corporate Discounts

“It’s a tough time for many Australian workers at the moment and they’re seeking savings wherever they can. Consider how you can use this to your advantage when it comes to recruiting and retaining staff,” says Mr Furman.

“Consider investing in a free breakfast for staff, even if its once a week or complementary snacks in the kitchen – simple ways to boost morale”

“Employees are looking for corporate discounts across a range of industries such as health insurance, travel, and retail outlets. It’s about demonstrating a level of care for their lives outside of work as well”

• Shopify Winter ’23 Edition sees 100+ product updates designed to help merchants convert better, sell faster, and win consumers
• New releases for next generation Shop app and one-page checkout to help merchants boost conversion amidst challenging economic conditions
• Shopify powers 25% of all ecommerce in Australia, including for ambitious retailers like JB HiFi, Culture Kings, and July

Shopify (NYSE: SHOP), a provider of essential internet infrastructure for commerce, has today unveiled a major set of 100+ platform updates, with new features that unlock the power of mobile commerce and meet shifting shopping preferences with a seamless checkout experience.

A new suite of features for Australian merchants comes as retailers seek new ways to get more from less, as they double-down on customer experience in an effort to convert more conscious and considered shoppers in 2023. Shopify research conducted ahead of the holiday sales season found that 92% of retailers are focused on strengthening direct brand-consumer relationships to retain loyalty during the cost of living crisis, with 79% stating it is more important compared to a year ago.

“Not even a year ago we launched our first Edition, and now our Winter ‘23 Edition showcases over a hundred more products and features we’ve built in the last six months alone,” said Harley Finkelstein, President at Shopify.

“We know we need to be the fastest moving commerce company in the world because our merchants depend on Shopify’s innovation for their own longevity. So with this Edition, we moved quickly to offer tools that help merchants access the promise of mobile commerce, meet customer expectations for fast delivery and seamless checkout, and sell more with AI — it’s the best version of Shopify yet, and will shape the future of entrepreneurship.”

Optimising Checkout to drive higher conversion for Australian merchants

With more than 5.5 billion orders processed, Shopify Checkout is reliable, scalable, and lightning fast. However, with 74% of Australian consumers saying that price rules purchase decisions in the current economic environment, we’re launching new levels of extensibility to help merchants optimise for conversion.

Using our learnings from Shop Pay — which converts 72% better than a typical checkout and 91% better on mobile, while boasting the processing power of 40,000 checkouts per store per minute with 99.99% uptime — Shopify Checkout now offers:

• Drag and drop Checkout Editor so Shopify Plus merchants can install apps to checkout that add greater functionality, like upsells, recommendations, loyalty programs, and more,
• Enhanced developer tooling to make it possible for developers to customise their over version of Checkout to curate a brand-specific customer experience,
• One-page Checkout to streamline our existing Checkout and adding app-based customisations to create a faster, friction-free, and higher-converting standard for checking out.

More functionality for the Shop app to help merchants win in the mobile era of commerce  

Sales in third-party mobile platforms are continuing to rise — with Australia ranking third globally when it comes to social commerce adoption. While more channels and selling opportunities may seem like a positive, it actually presents a challenge for independent merchants in that they lose ownership of customer relationships at a time they need them most. 

Shop is a shopping destination and delivery tracking app that is available to Australian customers on both iOS and Android, with more than 100 million users globally. As mobile commerce continues to grow, we’re introducing new functionality to the Shop app to give Aussie merchants the tools needed for an out-of-the-box mobile strategy without needing the technical resources and personnel to build an app on their own. This means they can maintain ownership of their customer relationships on mobile, with a customised in-app shopping experience to acquire new high-impact shoppers, and convert browsers to buyers.

New for the Shopify Winter ‘23 Edition includes:

• Launching Shop Minis, to give developers a new way to build for mobile. The Shop Mini software development kit (SDK) enables developers to extend their Shopify app functionality to Shop, creating innovative in-app shopping experiences.
• Shop Store customisation delivers an increase of up to 15%  in conversion by giving merchants greater control over the look and feel of their Shop Store (a merchant’s storefront on the Shop app) with features like product collections, best sellers, reviews, and branding elements.
• Sign in with Shop seamlessly integrates with Shop Pay on Apple and Android devices with new biometric passkeys for an even easier sign in experience. 

Shaun Broughton, Managing Director, APAC highlighted the impact these changes will have on Australian merchants who are navigating significant economic and consumer shifts in 2023, “Commerce looks different this year as consumer behaviour and shopping habits shift in response to the current economic environment. Those who stay on the current edge will win, which is why we’re doubling-down on our investment in innovation and product development to keep Aussie retailers ahead of the curve and give them an advantage over their competitors that’s built to last. I can’t wait to see the incredible experiences retailers here build with these newest updates.”

In addition to these new releases launching with our Winter ‘23 Edition, we’ve also launched the following Down Under over the last six months:

• Shopify Capital: Provides quick and easy funding up to $2.5 million AUD for thousands of merchants to accelerate growth, expand to new markets.
• Shopify Translate & Adapt, a new app that works with Shopify Markets, to help merchants quickly and accurately translate a merchant’s store into different languages with both manual and machine translations.
• Shopify x YouTube Shopping allows creators and merchants in Australia to sell their full range of products on YouTube via livestreams, in-video clickable product shelf and store tabs.
• Shopify Starter Plan helps merchants that are just starting out and who want to sell to their customers through social media platforms or messaging apps, without maintaining an online store.

Australia is recognised as the third most expensive G20 country for international money transfers.^[1] Yet new research has found that nearly two-thirds (60 per cent) of Australian businesses don’t check exchange rates or shop around for the best rates and lowest fees before making international payments and money transfers, yet half (52 per cent) get ‘fee shock’ after the transaction. 

The findings were derived from a survey of an independent panel of 250 Australian business owners and senior decision makers,^[2] commissioned by Money Transfer Comparison, a global comparison service that helps Australian businesses source the best rate in international money transfers. The full survey results, including breakdowns across ages and States, can be found here.

60 per cent don’t seek better rates; 1 in 3 don’t check rates when making payments or transfers

The Money Transfer Comparison survey found that more than a third (36 per cent) of businesses don’t check the exchange rate or try to find better rates before making an international payment or transfer, and an additional 24 per cent said that while they do check the exchange rate, they don’t shop around for lower fees or rates.

Businesses with more than 50 employees are more likely to hunt down better exchange rates on money transfers, with 58 per cent of large businesses and 57 per cent of medium-sized businesses indicating that they check rates and look for better deals. This compares with 44 per cent of small businesses (11-50 employees) and 35 per cent of micro businesses (1-10 employees). 

Despite falling to a 30-year low of $0.61 against the US dollar in October 2022, the Australian dollar has slowly strengthened, fluctuating between USD$0.69-0.71 this year to date. Major national banks predict a strengthening of our dollar through 2023: NAB has estimated the dollar will reach an estimated $0.74 USD by June this year,^[3] while Westpac has predicted the same increase by December.^[4] 

Alon Rajic, Founder and Managing Director at Money Transfer Comparison, says the optimistic rise may help bolster the performance of Australian businesses in the foreign market, as long as they remember to shop around. “I was surprised to see that a large proportion of businesses in our research aren’t doing their due diligence and checking exchange rates and fees before making overseas payments. While the performance of the Australian dollar against the USD is predicted to improve this year, exchange rates have been volatile, particularly due to the global economic slowdown. 

“Comparing exchange rates and fees across providers can not only benefit larger businesses operating on a global scale, but also smaller businesses that may be using overseas suppliers and manufacturers. In fact, the ACCC estimates Australians could save up to AUD$500 on payments of around USD$7000, simply by comparing rates across providers.^[5] Businesses would also be wise to consider ways to reduce costs and waste in other areas, such as re-negotiating contracts with suppliers, contractors and manufacturers.” 

1 in 2 business admit to exchange rate ‘shock’ on transfers and payments

The survey respondents were also asked whether they have ever been caught out by higher-than-expected exchange rates and fees after making an overseas payment or money transfer. More than half (52 per cent) admitted the rate was higher than anticipated when making some payments. 

Interestingly, despite a higher proportion failing to check exchange rates and shop around, smaller businesses were less inclined to be blindsided by unexpectedly high rates and fees. Just 37 per cent of micro businesses admitted they were surprised to have paid a higher-than-expected rate on some money transfers and overseas payments, compared with 76 per cent of small businesses and 77 per cent of medium-to-large businesses.

Alon adds: “Unfortunately, many may not be aware that exchange rates and fees vary significantly across banks and fintech platforms – this is why comparing providers is a vital action to take before transferring money overseas. For instance, fees for international money transfers through Commonwealth Bank can range from $6 to $30, depending on whether internet, app, phone banking or a physical branch is used,^[6] while fees through ANZ can range from $0 to $32 for transactions under $10,000 sent to some countries, such as Papua New Guinea, depending on the platform used.^[7]”