Thousands of students could soon be able to tack on another year of university to start their own businesses.
Delivering on a federal government election promise, the Startup Year program will provide up to 2000 HECS-style loans annually to final-year undergraduates and some post-graduate students.
Industry and Science Minister Ed Husic said the government was trying to signal the importance of entrepreneurship.
"The amount of business dynamism that exists in the economy is not strong enough, we need to do more to rev that up," he told University of Technology Sydney students and staff on Thursday.
The program is in a consultation period, and Education Minister Jason Clare is urging universities, business leaders, students and investors to share their views on how it should run.
"By working in specialist higher education settings these new entrepreneurs can gain access to resources, facilities, mentoring and business networks," he said.
"This will give them the best chance at success."
The consultation period finishes on November 15 and the program could be available for students as early as next year.
