National and State governments have been promoting Business Innovation Visas since 2012, to attract overseas entrepreneurs, high net-worth families and businesses to invest in Australia, thus offering a migration opportunity to these individuals and families, and also generating new jobs within Australia, enhancing the economy of the nation.
However, are these investments in the right businesses?
Are the would-be migrants aware of the various business options in the respective regions?
Well, looking at the trend thus far, it seems to be far from the truth.
“One of the biggest challenges facing applicants of Subclass 132 Significant Business History (SBH) stream, and Subclass 188A Business Innovation and Investment (Provisional) visa is the lack of information and knowledge, especially with regard to where they can invest, and how to run these businesses” says Sophia D’Penha, Business Innovation Specialist at BW Capital.
Typically, most of them end up investing either in cafes/ juice stations/ small restaurants including takeaways/ newsagency/ gymnasium/ local grocery markets/ hair salons etc which apparently have been portrayed as simple businesses to run without any hassles. Right?
The service provider/s presenting the business opportunities to these clientele do not consider client capabilities and rarely research & source a business as per their requirements.
The business investment in most cases is made only to meet the visa investment requirement, and the focus is on obtaining the visa and not on acquiring a good business for the client to run.
This is one of the main reasons why most of these small businesses fail to perform as required. The new business owners are not provided with all the business-related information, they are unaware of the actual dynamics of the business, and hence end up underperforming, and in some instances lose their hard-earned invested monies because of half-baked or otherwise shady business ventures.
Seldom is a good solid manufacturing/ production etc. type of business (across various industries) presented to the potential buyer/investor. The innovation, the creativity and also growth of prevailing businesses to the next level is almost non-existent.
Ms D’Penha adds, “Likewise, 188C visa applicants face similar trouble finding SIV compliant investment service provider/s, who will generate unbiased client portfolios based on client profile and requirements.”
Another problem is misleading and deceptive conduct. Unscrupulous lawyers, fly-by-night consultants and project developers who either run away with their clients' money or use it for personal use have stained the program.
The subsequent question that needs to be asked.
Is there a service providers who essentially caters to client requirements, and also creates:
i/ an environment for the migrants to obtain their visas, and
ii/ grows the Australian investment and business environment?
To know more about this please contact Sophia D'Penha from BW Capital: This email address is being protected from spambots. You need JavaScript enabled to view it.