Everyone that takes a quick look at the investment culture in Australia can observe that there are a few things that are not working quite right. For example, there are a lot of Australians that would rather gamble on a sporting event instead of using the same amount of money to invest and get a long-term return from them. And what might seem like a small issue, can rapidly turn into a big problem since Australians prefer short-term investments with big risks rather than a longer-term investment with a lower grade of risk.
Where does the issue come from?
If you take some time speaking with local investors, either in the start-up scene or not, it will become clear that there is a strong desire to invest but, in most cases, the environment is confusing and hostile for newcomers. And while nobody can really explain why Australian are limited when it comes to investing, there are a few things done to change this situation.
What can be done to change things?
Well, first of all, in order to make investing more attractive, you have to start by trying to reduce the risk or, at least, present the situation in such a manner that investing becomes a good idea over other short-term risks like gambling with Unibet Casino free spins, for example. And it’s the government’s job to make investment more attractive by lowering taxes and creating a healthy environment where investors can feel free to take more risks. Unfortunately, the bureaucracy and lengthy applications are keeping people away for now. There is a strong need for implementing easy-access and incentives like a VAT return or tax-back practices that act as a plan B or safety net for investors. Not unlike uk income tax bands.
Education is everything
For people to be more open to investing, you need to make them understand the assets, classes and what happens during the investment process. In other words, if the population does not understand the whole process, they won’t be interested in investing. Education and raising awareness through extra-hours of entrepreneurial guidance can drastically change things. You need to know how to attract fresh blood into the system by engaging in the market and inviting individuals to learn about the whole phenomenon through events, meeting and complex programs.
Start-ups and the investment issue
In the end, it may be reduced to better support for start-ups that can increase the chance of success. For this, you need a matrix that will help communication and connection between the right people. Either if we’re talking about mentors, advisers or specialists in the domain, you need to keep these people inter-connected. Through this, the access to influential people and capital can be encouraged and start-ups can have better chances for success.
The bottom line is that, right now, Australia produces a very small number of start-up exports and investments in companies or ideas compared to other nations that, perhaps, don’t have the same economic environment. Even so, with some tweaks in policy, better education and support structures for investors, Australia can put that massive potential into practice and become a great market.