Australia's Startup Sector Just Grew at Double the Global Rate

Australia has re-entered the world's top 10 startup ecosystems for the first time in three years, with growth more than double the global average.

The StartupBlink Global Startup Ecosystem Report, which assessed over 270,000 startups worldwide, ranked Australia 9th globally. The country's startup sector grew 22.9% over the past year, compared to a global average of 10.3%. Australia also ranked 5th for return on investment and 6th for overall attractiveness as a startup destination.

The growth is everywhere, not just Sydney

Melbourne led the country with 37.8% growth and ranks 34th globally. Sydney grew 11.7% and sits 30th. But the more interesting numbers are further down the list: the Gold Coast surged 45%, and Adelaide and Perth each grew over 31%.

That regional spread matters. A startup ecosystem concentrated in one city is fragile. One spread across multiple metros, including regional centres, is a different proposition entirely.

ABS data tells a similar story at the business level. In 2024-25, 437,150 new businesses entered the market against 370,500 exits, a net gain of 66,650. Australia now has 2.73 million actively trading businesses, with health care and transport posting the strongest sector growth.

E-commerce and retail leading the way

Australia's strongest startup sector globally is e-commerce and retail, where the country ranks 5th in the world. Foodtech, agritech, and manufacturing also performed well.

That's notable because traditional retail is under significant pressure right now, with household spending falling and consumers trading down. New businesses are growing into the gaps that incumbents are leaving. The shift isn't just cyclical. It's structural.

The gap that's holding Australia back

The report isn't all good news. Australia ranked 17th on the Innovators Business Environment Index, well below its 9th-place ecosystem ranking. The two weak points: how capital gains tax currently treats startup investment, and access to investment capital more broadly.

In practical terms, the ecosystem is growing despite the policy settings, not because of them. Founders are succeeding by finding their own paths to capital and structuring around the tax system rather than being helped by it.

What this says about where things are heading

The growth data is a signal, not just a ranking. More Australians are starting businesses, more of those businesses are surviving, and the growth is spreading well beyond the traditional centres.

The business environment gap is the thing to watch. If capital access and tax settings improve, the ecosystem has room to accelerate further. If they don't, founders will keep doing what they've been doing for the past three years: finding ways to grow around the friction.

Either way, the trend is clear. The country is producing more businesses, in more places, across more sectors than it has in years. And the world has noticed.

This article is general information only and is not financial advice.