Toronto Mike

Investment Culture of Australia

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.

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