Australian Sharemarket Performance and Entrepreneur Equity Funding

This report analyzes the impact of the Australian share market's historical performance on an entrepreneur's ability to secure equity funding from investors. The Australian share market has achieved an average annual return of 13.1% since 1900, influencing investor behavior and capital allocation. The high average return on equity provides entrepreneurs with opportunities for capital gains and dividends, attracting investors and facilitating business growth. The report highlights the importance of market returns in securing equity funding, as investors assess the potential for profit from their investments. It discusses how entrepreneurs can leverage market performance to obtain capital, and how investors can benefit from dividends and capital appreciation. The report emphasizes the long-term benefits of equity market investments and the impact on entrepreneurs in securing funds and expanding their businesses. The volatility of the stock market in short-run is also considered, while highlighting the long-run benefits of equity market investments.

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Performance Evaluation and Impact
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Summary
Australian Sharemarket achieved an average annual return of 13.1% per annum. The
performance of the Australian share market has impacted on the investor and the entrepreneur to
invest in the share to get more return. The average return on equity is high, and through which an
entrepreneur and investor can generate long term assurance for the future. The entrepreneur has a
good amount of capital gain and dividend through which it can meet up its requirement and can
earn a good return from an investment. To obtain equity funding from the investor, has to check
the stock market for investment, whether the stock market has a good rate of return to generate
profit from the share it purchased. If the market is creating a better return, it intends the investor
to make an investment and get an expected return from it. This help an entrepreneur or public
traded company to gather capital fund and share in the form of dividend, or Reserve it for future
or long term need. The investor who purchases the stock from the market can get dividend from
the profit or return that the market incurred. This impact the entrepreneur funding from the
investor who has secured profit can invest more in the business to get a better return from it.
Hence entrepreneurs increase its capital from the fund it received and share dividend to its
preferred shareholder and later to the common shareholder. Investors can also sell their stock
from the purchase and generate profit from the market return. It invests in the entrepreneur
business to support funding and get a considerable return in the long-run when the price of the
stock market increases and thus impacted the entrepreneur to secure its capital (Erdugan,
Kulendran, & Natoli, 2019). As the market return rate on equity fund is tremendous can impact
more in the long-run rather than the short run. In Short-run, the stock market may be volatile, but
in the long-run equity market can generate a huge return from the investment, and it can be store
for future use that can impact a good result for the entrepreneur.

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Reference
Erdugan, R., Kulendran, N., & Natoli, R. (2019). Incorporating financial market volatility to
improve forecasts of directional changes in Australian share market returns. Financial
Markets and Portfolio Management, 33(4), 417-445.