Victorian Tech Startup Week

Last week, I mentioned that Australia’s headline employment numbers appeared to be making a strong post-lockdown recovery – however, the latest ABS data shows that while the unemployment rate has declined, the overall participation rate has remained the same, and the underemployment rate has actually increased. “Underemployed” is defined by the ABS as the number of “employed people who would prefer, and are available for, more hours of work than they currently have”. For many people, the traditional solution to bridging the gap between the amount of work they have, and the amount they want, is to juggle multiple part-time jobs, while others may choose to seek freelance work. Another approach is to create your own role, by becoming a startup founder, or joining a startup.

Of course, as I have written elsewhere, startups might not be for everyone. But until you try (or at least explore the idea), how will you know? This was one theme to have emerged from the recent Victorian Tech Startup Week, hosted by YBF Melbourne, with support from OVHcloud, AirTree Ventures, Silicon Beach Melbourne, the Victorian Government and YBF’s network of mentors, programme partners and community of members.

In part an effort to rekindle the local community of startups, in part a celebration of YBF’s Startup Immersion Programme, the week also showcased the benefits of co-working, and included sessions on startup funding, R&D grants, engaging with corporate clients, and a pitch night (more on that next week).

Of course, as a YBF member, and having worked with startups and founders for more than 10 years, I’m naturally biased. I have been working from their Melbourne co-working facility for the past two years (lock-down permitting), and I have been attending events and workshops there for many years (including participating in my very first hackathon….). I have also worked with some of their earliest startup founders.

Even though I am used to working from home and working remotely, the value of being on-site with other startup teams and founders within a supportive environment cannot be overestimated. And it’s not just about access to great facilities, and the many benefits that YBF offers. For one thing, as a member I get invited to meetings and events not open to the wider public. For another, I can host clients and other visitors without having to maintain my own office. But most of all, it’s the opportunity for chance encounters with potential clients, partners and suppliers, often triggered by casual conversations by the coffee machine or during other networking sessions.

A few years ago, it was reported that there were over 300 co-working spaces in Australia, and more then 80 of them in the Melbourne area alone. I’m not sure what those numbers are now, post-pandemic, especially as offices in Melbourne are still not back to full operating capacity. Nevertheless, co-working spaces are in demand again as (ex-)employees consider their future career options in light of the COVID recession, and as startups and their founders are expected to support the anticipated economic growth in areas like new technology, sustainability, smart manufacturing, healthcare and financial services. Of course, before making a decision on where to locate your new business or where to start co-working, it pays to do your due diligence.

Next week: Victorian Tech Startup Week – Pitch Night

Transition – post-pandemic career moves

Even before the latest lock-down v3.0 in Melbourne, one of the other members of my co-working space in the CBD decided they’d already had enough of being confined to a 5km radius, working from home, and other lock-down related restrictions. Having had their interstate travel curtailed over the past 12 months, and suffering from cabin fever, they have opted to spend the next few months living in and working from various Airbnb locations around regional Victoria. Even though they are used to WFH, recent experience has shown that they don’t need to be confined to one place. And this post-COVID shift in our work/life patterns (already being disrupted and enabled by remote working) is only increasing.

Likewise, a client I spoke to in the USA last week informed me that they had just settled into a new location on the west coast, and was “living the dream” of a nomadic existence.

More extreme is the recent example of a Guardian employee who, having had to travel from Sydney to the UK for a family funeral last year, then took several months to get back home (due to flight cancellations), but managed to keep working remotely from various European locations as he moved around to stay ahead of border closures.

Prior to this past weekend, and despite the city being out of Stage 4 lock-down for 3 months, private offices in Melbourne’s CBD have only been allowed to operate at 50% of capacity – the proposed move to 75% capacity has been put back. It means, for example, that even on a really good day, my local coffee shop is still only doing 60% of its pre-COVID business.

It’s my guess that the combination of office restrictions and many retail and hospitality businesses simply not bothering to re-open at all means the CBD is barely operating at 40-50%. It’s deceptive – some activities (e.g., construction) have continued pretty much unabated (even expanding while there is less traffic on the roads); while others have been shut down altogether (e.g., entertainment). Certainly food delivery services are still in demand, while some retail has been doing a bit better as customers appreciate the novelty of shopping in-person.

Monday to Friday in the CBD is like a bell-curve distribution – Mondays and Fridays are much quieter, as people choose to WFH part of the week. Which is challenging for employers, as they try to revert to “normal”. But assuming a mix of remote and on-site working continues, it probably means less overall demand for office space. (It’s also difficult to assess the impact of the CBD exodus on suburban hubs.)

So all that construction work suggests we will have an over-supply of commercial premises (offices, shops, restaurants and hotels).

Residential property is a similar story – student accommodation is far from full, as overseas students aren’t returning; and more inner-city apartment buildings are still going up, but there is something of an exodus from the city to regional and rural locations.

The latter tree- and sea-changes are being fueled by a number of factors: a desire to leave the city (which is more prone to lock-downs); low interest rates (so, cash out the equity in your suburban home and move to the country where your money buys you more); increased opportunity to WFH (see, 5G and the NBN have their benefits!); and a broader wish for a different work/life balance.

Unfortunately, this shift is also putting pressure on local housing supply – average property prices are going up faster in some regional centres than in the capital cities; and more nomadic lifestyles are driving up demand for short-stay accommodation. The combined effect is higher rental costs and reduced supply, tending to squeeze out the locals.

Ironically, we’ve heard farmers and primary producers in rural and regional Australia complain that they can’t get seasonal workers due to COVID restrictions on international visitors (especially students, back-packers and experienced fruit pickers). Conversely, we’re told that 90% of jobs lost after March last year have now been recovered – although this apparent rebound is mainly in part-time roles, not full-time positions. It would be interesting to see a detailed breakdown by industry, as some sectors (tourism, aviation, universities) are still struggling.

The hiatus (and disruption) brought about by COVID and subsequent lock-downs has no doubt prompted many people to reassess their careers: where do I want to live/work? what type of work do I want to do? which industries or companies are hiring? and for what roles? As part of a wider re- and up-skilling initiative, the Federal and State governments are offering a range of free vocational courses (mostly Cert I to IV programmes), as well as some enhanced “pathways” to trade apprenticeships.

While this is to be applauded, I can’t help feeling the effort is at least 5-10 years too late to address the technological, demographic and societal changes that began at the end of the last century, with the advent of the internet, cheaper technology, an ageing population, increased globalisation, inefficient taxation and tariff systems, and general economic restructuring. If nothing else, COVID has demonstrated the need for more resilience in the domestic economy, (and a reduced reliance on overseas imports and supply chains) such as smart manufacturing and food security.

Meanwhile, a friend of mine recently related that a nephew of his had dropped out of college (like many of his peers in the USA and elsewhere) and decided to become a self-taught expert in DeFi, as there is more chance of financial success (and career satisfaction) than obtaining an “off the shelf” bachelor degree….

Next week: Corporate Art

Bread And Circuses

At the risk of sounding like a broken record, here in Melbourne we are waiting for signs that the State Government is preparing to lift some or any of the restrictions that have kept us in Stage 3 & 4 lock-down for most of the past 7 months.

Photo sourced from Twitter (thanks, Warwick…) https://twitter.com/peely76/status/1309750743331606533?s=21

Data on new cases and community clusters released over the past few days suggest we won’t be “getting on the beers” with our mates any time soon, and certainly not with the Premier’s blessing.

The slow drip feed of information at the Premier’s daily press conferences, and the painful revelations at the recent Board of Inquiry into the failed hotel quarantine program, somehow suggest a Head Teacher who is forever saying, “This hurts me more than it hurts you” before handing out another punishment. Believe me, the audience increasingly feels like it is being tortured for its own good – because even though most of us understand why we had to have the first lock-down, the blatant failures within government, the civil service, certain public agencies and their private sector contractors have made it seem we are paying for their mistakes.

In Roman times, the general populace stayed docile as long as there were “bread and circuses” to feed and entertain them.

Now, apart from some toilet roll shortages early in the piece, and the occasional binge shopping on pasta and tinned tomatoes, by and large, the supply chains have been kept open, and the supermarket shelves replenished. (Some small grocers and independent producers may actually have benefited, as people are forced to shop local, and as restaurants pivoted towards cook-at-home meals – but equally, others may have been forced out of business if the major chains have used their market power to commandeer supply. Hopefully, the ACCC under Rod Sims will be keeping the latter honest.) Plus food delivery services have flourished due to the increased demand. So most of us can’t be said to be going hungry (although food banks have likewise never been busier).

So, in the words of Kurt Cobain, since we are still in lock-down, “Here we are now, entertain us!”

Box set bingeing and non-stop streaming only get us so far (I gave up about 3 weeks into lock-down Part 1). Broadcast sports are patchy given the limits on live crowds. Home-gigs/domestic-busking are not the same as a night at The Corner Hotel in Richmond. The lack of access to cinemas, theatres, galleries and museums means my need for culture is not easily satisfied. And while I have been digging into my library, revisiting classic albums, and trawling the BBC sound archives (as well as creating my own electronic music), the additional stimulus provided by in-person and on-location events is sorely lacking.

It’s clear that many of our artists and performers are also struggling, but their particular plight is not being fully recognised or acknowledged. In the UK, for example, the arts and entertainment community argues that their industry is under-appreciated for the financial contribution it makes to the national economy. This is not to overlook the social, cultural and mental health benefits of a thriving creative sector.

Meanwhile, the tedious cat and mouse game being conducted between the Premier and some sectors of the media (plus the highly divisive commentary generated by the Premier’s fervid supporters and detractors on social media) is no substitute for proper entertainment – and even though a couple of heads have been dispatched thanks to the Board of Inquiry (so, that was a thumbs down from the Emperor?), the lock-down song remains the same. Time to change the (broken) record?

Next week: Golden Years

Revisiting Purpose

Enforced lock-down thanks to the COVID-19 pandemic has provided ample opportunity for each of us to reflect on our “purpose” – especially if we typically identify our purpose with going to the office or other workplace (and the time spent on our daily commute).

In addition to the mandatory furlough, the inability to do the everyday things we usually take for granted can create some sort of existential crisis. So even though many of us continue to work from home, there is a very practical purpose in having a structured routine (including the all-important daily exercise allowance!) – for both physical and psychological needs.

But this time of reflection also provides an opportunity to reassess our priorities, and re-calibrate what is important to us, once we get through the pandemic. It feels that the paradox of having more time on our hands, but fewer options as to what to do with it, might mean we should be jealously protective of how and where we spend it once we get the chance.

So some of the factors we may consider in deciding how we spend our time and how we define our purpose might include:

  • what have I really missed, and what can I do without?
  • what will sustain me, and what will be a drain on my resources?
  • what can support my personal development, and what will hold me back?
  • what can I do independently, and what will require collaboration?
  • what has engaged me, and what has bored me?
  • what new skills have I had to learn, and what will continue to be relevant?
  • what do I wish I had done more of (or less of) before the lock-down?

While “time spent” shouldn’t be the defining criteria of our purpose, as a valuable (and finite) resource, how we allocate our time should be a significant measure of what is important to us, and what enables us to pursue our purpose.

Next week: Three Wise Monkeys