A fantastic piece from Paul Wallbank in Business Spectator on the challenges faced by Australia in establishing the foundation of a start-up culture down under.
“Sydney business intelligence and data visualisation company Encompass is one Australian start-up that does offer employee stock options, seeing them as critical for giving staff a stake in the three year old company.
“We want everyone to be a part of the company and have their focus on growing longer term value of the company,” Encompass co-founder Wayne Johnson told Business Spectator.
“The best way to do this is to ensure that the shareholder goals are aligned to staff goals by focusing on company value. This is one way for us to reward talented staff beyond their normal remuneration for the creativity they bring to the company.”
Unfortunately for Johnson and Encompass’ employees, current rules mean that as the company grows it will be likely it will have to move out of Australia. “Once professional investors and VC firms take investment in the company, then we will have no choice,” says Johnson.
Encompass’ dilemma is what worries the Australian Information Industry Association, “Australia will lose both smart people and smart ideas if we continue to penalise talent and hamper the success of our start-ups and entrepreneurs”, the association says.”
Read the full article here.