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Comment by abbasmehdi | Hacker News Reader

Countries with much broader safety nets for entrepreneurs are not producing the risky innovative companies that America is.

This could also be a culture thing. When I was in Canada until 5.5 years ago the golden ticket was to work for a big co. I was an ECE major and the top employer of choice was, even for me, BC Hydro (power company). I have no idea anymore why I'd have thought like that, but maybe now I am brainwashed this way. :-)

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I think the same attitude exists in Australia. Lots of people start small businesses, but the actual startup scene is very small. People who do go out on their own tend to stick to established business models. Nothing wrong with that I suppose but it inevitably leads to less innovation. The other factor here is the almost total absence of VC funding. Startup culture needs a critical mass of entrepreneurs and money.

[edit] - the other big issue in Australia is there's less social tolerance for businesses failing.

Well, there's also the minor detail that the Australian market is small, and transport to other markets is expensive...

But you're dead right about the social tolerance aspect. My younger brother started a car detailing company - OK, it's not innovative or anything, but he was really looked down upon by the wives of some of his friends...

In my opinion, this state of mind still exists in Canada. Entrepreneurship is being celebrated, but the default for many, many students is to get a job with a large corporation and get your stripes.

It's changing, at least in the Waterloo area. When I started university, the smartest kids were crossing the border to work for Google and Microsoft. By the time I graduated, most of the smartest kids were going to startups or doing their own.

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