:00:26. > :00:31.punctured tyre on the first lap. This is Show Me The Money, your
:00:31. > :00:36.weekly guide to who is making a cash, the way we do it and how we
:00:36. > :00:41.work. We have looked Johnson, who made his DOH at Pizza Express and
:00:41. > :00:46.now invests in others' businesses. Emma Jones wants you to set up your
:00:46. > :00:51.own business, she is fermenter back -- from Enterprise Nation. Paul
:00:51. > :00:56.Lindley is big on baby food, they'd all be down in Norway. It is Super
:00:56. > :01:00.Mario to the rescue in Italy. Mario Monti has been asked to form a new
:01:00. > :01:04.government. He takes over from Silvio Berlusconi, who quit on
:01:04. > :01:12.Saturday evening to booze, cheers and a string ensemble playing
:01:12. > :01:17.hallelujah. Dominic lorry has been following events in Rome. His --
:01:17. > :01:22.Dominic Laurie has been following events in Rome. Mario Monti's big
:01:22. > :01:28.challenge is to implement cuts and reforms. Yes, 59 billion euros
:01:28. > :01:34.worth of reforms agreed, the most controversial being a reform of the
:01:34. > :01:38.pension age, raising it from 65-67 years old by 2026. Also has a
:01:38. > :01:44.measures like the selling-off of state assets, like former military
:01:44. > :01:50.institutions, even farmland. So real, huge, wide range of measures
:01:50. > :01:55.taken. This is on the backdrop of a country that is already feeling the
:01:55. > :01:59.economic squeeze. You talk to many people here in Italy who are on low
:01:59. > :02:04.to middle incomes. They say they can hardly keep pace with the cost
:02:04. > :02:10.of living. Their salary just will not meet their expenses. I spoke to
:02:10. > :02:15.a man at Rome's market this morning, who had a pension of 800 euros a
:02:15. > :02:20.month and he said it hardly covers his rent and his bills. So the cuts
:02:20. > :02:24.are coming on top of pain already. It will be interesting to see
:02:24. > :02:30.whether Mario Monti will have the support of the people as well as
:02:30. > :02:35.the support of other parties in parliament as the cuts progress
:02:35. > :02:37.over the years to 2040. I bet many of those people you were speaking
:02:37. > :02:41.to were asking why the cuts are necessary to come a superficially
:02:41. > :02:45.you wonder why Italy has a crisis at all? He did not have a banking
:02:45. > :02:50.crisis, did not have a property collapse, its annual government
:02:50. > :02:55.overdraft is less than many of the European nations. Indeed, people
:02:55. > :02:59.are suspicious of borrowing too much money. There was not a housing
:02:59. > :03:04.bubble really, so much. The trouble as it is the differential between
:03:04. > :03:08.the gross rate of the economy and the debts that the government
:03:08. > :03:15.passed slowly accumulated over the last 20 years. The economy is
:03:15. > :03:18.growing at an average of around 01 % over the last 20 years or so,
:03:18. > :03:26.whereas the interest rate that the government was being asked to pay
:03:26. > :03:31.on its government debt was about six to 7% last week. -- 0, to 1%.
:03:31. > :03:35.The difference between those two things is what is scaring the
:03:35. > :03:38.market and led Silvio Berlusconi to resign at the end of the week, he
:03:38. > :03:42.said to prevent spina -- financial speculation. He has said that in
:03:42. > :03:47.the last couple of hours. Italy has a bond issue. It has to raise money
:03:47. > :03:50.as soon as tomorrow, so that is what led to a change of government,
:03:50. > :03:56.a change of prime minister, so the markets tomorrow morning would not
:03:56. > :04:00.be scared. Dominic Laurie in Rome. Let's talk to Anna Jones. What is
:04:00. > :04:04.the impact of this on business, on people thinking of setting up a
:04:04. > :04:09.business? The mood music that is coming from Europe, should it put
:04:09. > :04:13.them off? I always referred to small business as the bright spot
:04:13. > :04:17.of the UK economy and even in the midst of the crisis small
:04:17. > :04:21.businesses are getting out there, Going Global, traded overseas and
:04:21. > :04:24.some figures, the UK exports 50% of the eurozone countries but small
:04:24. > :04:28.businesses are looking beyond the eurozone nations. If they are
:04:28. > :04:32.slightly scared in terms of are their customers in Italy, Portugal
:04:32. > :04:35.and Greece, they are looking to say we have huge bases of customers in
:04:35. > :04:40.China and India, so higher net worth individuals who are coming
:04:40. > :04:43.into those markets, the world is your oyster. Embraced technology,
:04:43. > :04:47.have a niche product you can sell to the world, small businesses are
:04:47. > :04:52.going global very quickly. Paul Lindley runs a small business that
:04:52. > :04:57.does export to Europe other parts of Europe that do not use the euro
:04:57. > :05:04.as well. How do you manage the risks in currencies? First of all I
:05:04. > :05:09.think exporting is a risk, awaited the risk your business. There are
:05:09. > :05:14.lots of places around the world where economies are growing. A lot
:05:14. > :05:17.of our costs of goods are in euro, so we look specifically to export
:05:17. > :05:22.to get income coming in your road, so we set up a euro bank account,
:05:22. > :05:26.money comes out and in and it self hedges. Any differential, we look
:05:26. > :05:30.to take future exchange's position so we are not speculating on
:05:30. > :05:33.currency but have it locked down and know where we can go. How does
:05:33. > :05:37.it affect your thinking about future investment or your day-to-
:05:37. > :05:42.day strategy? Is it something that is at the front of your mind or is
:05:42. > :05:46.it like a dull, ticking... It is at the front of my mind. I take a
:05:46. > :05:50.simple view. I think people around the world are more the same than
:05:50. > :05:54.different. Ella's Kitchen, the brand, works here and it will work
:05:54. > :05:58.in other markets. I need to understand the culture and society,
:05:58. > :06:01.things that are local, but if you have a great brand and a great
:06:01. > :06:08.business the way to do you risk your business is to go out and look
:06:08. > :06:12.globally. -- To take less risk with your business. Luke Johnson, with
:06:12. > :06:16.the investment background, what impact does the continuing problem
:06:17. > :06:21.with Europe, Italy and Greece, have on the decisions on investment in
:06:21. > :06:25.business? Well, two points really, firstly thank God we stayed out of
:06:25. > :06:28.the euro and have control of our own currency and exchange rates and
:06:29. > :06:36.secondly I think you have to give it this government that they have
:06:36. > :06:42.pursued a policy of cuts and austerity which means that a we are
:06:42. > :06:44.able to issue our guilt set very low interest rates and it means
:06:44. > :06:46.that mortgage holders under the draft some so forth are at
:06:47. > :06:51.reasonable levels. If Britain were so tough -- suffering Italy's
:06:51. > :06:54.interest rates we would be a very serious trouble. Don't low-interest
:06:54. > :06:58.rates suggest the markets have little confidence that they might
:06:58. > :07:00.be strong growth in the UK? The expect the Bank of England needs to
:07:01. > :07:06.keep interest rates lower for longer because the economy is
:07:06. > :07:08.anaemic? Yes, to an extent, but the point what we need to get close not
:07:09. > :07:12.from public spending but from private investment and
:07:12. > :07:15.entrepreneurs, who are trading new businesses and growing the private
:07:15. > :07:20.sector. We don't want government spending to crowd out private
:07:20. > :07:24.investment. Thank you very much. We will develop those seen through the
:07:24. > :07:29.programme. Time now for Boom or Bust, the flick through some of the
:07:29. > :07:33.more important stories of the week. Starting with this, flights halted,
:07:33. > :07:36.rush-hour rescheduled, parents paying. The reason? Hundreds of
:07:36. > :07:42.thousands of students in South Korea sitting a crucial college
:07:42. > :07:45.entrance exam. Officers opened late so students could arrive at test
:07:45. > :07:49.centres on time, evening opening hours of the stock market were
:07:49. > :07:54.changed. Calm down dear. It is only a deer
:07:54. > :07:57.entering a restaurant, taking diners by surprise! The videos
:07:57. > :08:04.surveillance camera shows the deer jumping around a bit before
:08:04. > :08:08.retreating out of the door. Thankfully was not heard. The owner
:08:08. > :08:15.says the repair bill will be a bit deer. He really did say that, we
:08:15. > :08:19.did not making it up. Thousands in Chicago watching an extreme sport,
:08:19. > :08:24.snowmobile jumping. The contestants jump up to 30 feet in the air
:08:24. > :08:29.renders you can see it isn't a all weathers more -- all the sport. No
:08:29. > :08:33.snow is required, just a nice bit of carpet.
:08:33. > :08:39.Let's pick up the first story, that of the exams and South Korea was
:08:39. > :08:42.Paul Lindley. Paul, this I suppose getting into a discussion about the
:08:42. > :08:46.skills of school leavers when they take those exams and come out at
:08:46. > :08:49.the other end. Our schools teaching kids the right things for business?
:08:49. > :08:54.It is a question I get asked a lot for entrepreneurs and other small
:08:54. > :08:58.business holders and the general position is, they are not. The
:08:58. > :09:02.skills that are coming into the market place are not the right
:09:02. > :09:08.skills for 21st century economy. The skills this time in this
:09:08. > :09:13.century is about technology, understanding technology, languages,
:09:13. > :09:16.there are a billion new middle- class Indians and Chinese people
:09:16. > :09:19.coming into the global markets are being able to trade with them
:09:19. > :09:23.requires being able to talk in their language. The kids learn
:09:23. > :09:27.French and German nowadays. There are many people learning Chinese
:09:27. > :09:30.these days, which are the skills we need. I work in the Thames Valley.
:09:31. > :09:35.We have an IT industry down there. We have set up an academy for
:09:35. > :09:39.sixth-form students built around 80 skills, so that is putting the
:09:39. > :09:44.right skills and the right local economy and that can be developed
:09:44. > :09:50.further to embrace enterprise zones. In my business we export to Sweden.
:09:50. > :09:55.There is an area in Stockholm where all the retailers, or suppliers and
:09:55. > :09:59.all the educators, the recruitment agents, the Academy's, All For
:09:59. > :10:04.Learning retail and how it works and it brings a tremendous benefit
:10:04. > :10:07.to that economy and the skill base in it. Is it the job of schools?
:10:08. > :10:12.think it is the job of schools, of schools and parents. Parents
:10:12. > :10:14.educating their children, I was saying to somebody, kids are
:10:14. > :10:18.growing up wired for enterprise. They are great at self-promotion
:10:18. > :10:22.because they get out on websites and promote themselves. They are
:10:22. > :10:27.incredibly adept with technology so they are wire for enterprise. What
:10:27. > :10:31.they need adding his cash, mentoring such as -- from people
:10:31. > :10:36.such as Luke and Paul, but attaching the other kind of assets
:10:36. > :10:39.they need to go with the skills. Luke Johnson, you used to run Pizza
:10:39. > :10:44.Express restaurant. Did you ever have a deer crash through the
:10:44. > :10:49.front? I can't remember that, no. It did not sidle up to the bar
:10:49. > :10:54.looking for a couple of extra dough balls? Not my recollection.
:10:54. > :10:57.business lesson is how you cope with the unexpected in business.
:10:57. > :11:02.you go into business you should often assume that Murphy's law will
:11:02. > :11:06.apply and it something can go wrong it well. Were the were building
:11:06. > :11:13.your own website or constructing a restaurant, or recruiting, problems
:11:13. > :11:20.will occur and you need to be adaptable and an opportunist and
:11:20. > :11:23.take advantage of upsides, but also be resilient in -- and persevere. I
:11:23. > :11:33.think someone who gives up to weaselly is not suited to run their
:11:33. > :11:36.own company. Bad luck come amiss fortune is one thing, how do you
:11:36. > :11:40.hope for the people -- cope with the people in your business making
:11:40. > :11:43.unexpected mistakes? Depending on whether they are deliberate or
:11:43. > :11:48.negligence, you often feel let down but you carry on. You have to be
:11:48. > :11:51.relatively forgiving. Business does involve making hard choices and
:11:51. > :11:56.sometimes that might involve letting people go, which is never
:11:56. > :12:02.great. But life goes on, generally speaking a business has to be
:12:02. > :12:06.bigger than any of the individual people within it. Speaking of deer
:12:06. > :12:13.and food, the stuff used -- cell in Sweden, is there are deer component
:12:13. > :12:19.to that? Venice and his off, is the line on that. -- Dennis and. A how
:12:19. > :12:22.do you cope with the unexpected? You plan for the unexpected, but
:12:22. > :12:26.preparing yourself, practising for things that could go wrong with
:12:26. > :12:29.strong business continuity plans come strong crisis plans, making
:12:30. > :12:34.sure you have a skill based around you so when you need them they are
:12:34. > :12:39.around you. The risks you are taking business in honour of our
:12:39. > :12:47.snowmobile jumpers, risks that you take? It is not risks that I take,
:12:47. > :12:51.it is a faster knotting -- fascinating opportunity to say that
:12:51. > :12:55.starting a business is not high risk. We have global
:12:55. > :12:58.entrepreneurship week, there has never been a better time to start a
:12:58. > :13:03.business, you can do it low-cost, holding down the day-job, the best
:13:03. > :13:07.time to start a business on low risk. We will pick that up, the
:13:07. > :13:10.best wrist you ever take? starting Ella's Kitchen. You are
:13:10. > :13:15.working with huge retailers and multinational competition, I
:13:15. > :13:19.thought I had a plan, an innovative product, a could build a brand, I
:13:19. > :13:26.did it. Take the risks. You regret things you don't do rather than
:13:26. > :13:31.things you do do. Luke Johnson? of my favourite phrases is one by
:13:31. > :13:36.Gen Normacot. There is no security on the Serbs, only opportunity.
:13:36. > :13:42.you take advantage. You have acquired a special -- speckled,
:13:42. > :13:45.varied business career, Pizza Express, for a very long time. The
:13:45. > :13:51.one now in finance, you would chairman of Channel Four television
:13:51. > :13:59.for a period of time. When you take up these individual roles what
:13:59. > :14:03.attracts you to them? Learning new things, education, variety and I
:14:03. > :14:09.suppose flattery. Sometimes you get offered these roles and it appeals
:14:09. > :14:14.to one's ego. Do they ask nicely? Indeed. You accept. Yes. Many must
:14:14. > :14:17.play a part. Sure, but in a non- executive post some things like
:14:17. > :14:20.that, charities one might get involved with, social enterprises,
:14:20. > :14:25.it is more about it meeting interesting people and
:14:25. > :14:28.understanding new fields. What give you more fun in your career, the
:14:28. > :14:32.challenge of a hands-on management of the big business like Pizza
:14:32. > :14:42.Express, or are you more relaxed now, being a portfolio, more hands-
:14:42. > :14:50.
:14:50. > :14:57.I think it is a lot easier to play the role I do. But one is still
:14:57. > :15:05.risking capital and you still want everything to succeed. When you are
:15:05. > :15:13.investing in a business, are you involved any hands on we? The yes
:15:13. > :15:21.very much soul. So what attracts you to a business and what it might
:15:21. > :15:25.set the alarm bells going? I think the main thing are the people. If
:15:25. > :15:30.you do not trust the individuals, you do not want to get involved.
:15:30. > :15:40.But if they have the spectacular track record, that is obviously a
:15:40. > :15:49.very positive thing. Is she right about the idea that we have to
:15:49. > :15:55.encourage entrepreneurs in this time of austerity? Yes, up after
:15:55. > :16:04.all, Microsoft was started up in bad economic times, a ball Disney
:16:04. > :16:12.was started up in the midst of the Depression. The future is started
:16:12. > :16:16.at the bottom and it is always darkest before dawn. I think that
:16:16. > :16:24.those who have the discipline to succeed will always do so even when
:16:24. > :16:34.economic times are not so bright. Is the money out there for people
:16:34. > :16:38.to invest in? Yes, there are a number of options. There are
:16:38. > :16:48.clearly banks out there that will also lend money and a number of
:16:48. > :16:52.private investors. There are devices like invoice discounting.
:16:52. > :16:58.But it rather than looking for someone else to back your own risk,
:16:58. > :17:03.should your own money not be on the line? And I do not think you need
:17:03. > :17:10.to have too much at stake. I think the amount of time and effort by
:17:10. > :17:13.you are devoting to a cause should be enough. The Bank of England
:17:13. > :17:20.waltzed sale later this week that the economy is not growing as much
:17:20. > :17:30.as it should. It is likely to only grow by one %, half what was
:17:30. > :17:32.
:17:32. > :17:38.predicted. How much of this is down to the crisis in the Eurozone?
:17:38. > :17:44.think it it has certainly affected confidence, the relentless and bad
:17:44. > :17:50.headlines. The fact that the West has high welfare costs and an
:17:50. > :17:53.ageing population. We face a lot of competitors in low-cost countries
:17:53. > :17:58.such as India and China and we're going through a period of
:17:58. > :18:03.adjustment. Countries such as Great Britain, the Eurozone countries and
:18:03. > :18:10.America have a lot of tough decisions to make if they want to
:18:10. > :18:15.retain their economic standing. People are spotting gaps in the
:18:15. > :18:19.market and what we are seeing is people taking a hobby or a talent
:18:19. > :18:25.in to a business. Start-up businesses are great because they
:18:25. > :18:35.are generating turnover and proffer built profitability. But it is very
:18:35. > :18:44.important that they are invested in. The growth in the UK economy it is
:18:44. > :18:50.no such a very important thing that investment is made in new business.
:18:50. > :18:55.Sadly, unemployment figures will come out saying that one million
:18:55. > :19:01.youngster's are unemployed. But on the good side, about 80 % of them
:19:01. > :19:10.want to start their own business. The entrepreneur who ale or latent
:19:10. > :19:17.talent is there. What we need to do as a country is cultivate that more.
:19:17. > :19:23.Do they not see Enterprise has the worst possible option? No, not at
:19:23. > :19:28.all, the see it as a strong option. It is not seen as the traditional
:19:28. > :19:34.option, so when you go to the Careers Service, you're naturally
:19:34. > :19:41.encouraged to call him to a job. But if you're really good at making
:19:41. > :19:50.music or as a fashion designer, did you know that you could actually go
:19:50. > :19:54.yourself. It is important that that messages picked out to market.
:19:54. > :20:03.is the best advice you can give about to someone wanting to set up
:20:03. > :20:10.their own business? Do not just going to it to make a lot of money.
:20:10. > :20:17.Going to it because you love it and believe in it. The best lesson you
:20:17. > :20:27.have learnt from your own mistakes? He best lesson was a mistake I did
:20:27. > :20:31.
:20:31. > :20:37.not make was giving away it equity at the start of the business.
:20:37. > :20:41.Of Business but do not make a profit. It is maybe too summer sign
:20:41. > :20:49.that your business is not doing well. But for others, making money
:20:49. > :20:58.is simply not the great point of their business. We are operating
:20:58. > :21:03.from a 34 acre woodland. The profit that the social enterprise business
:21:03. > :21:07.makes a all ploughed back into the business. There is the distinct
:21:07. > :21:14.difference between full profit organisations and businesses such
:21:14. > :21:23.as ours. The business model is important. The guarantee is that it
:21:23. > :21:30.is not a work for profit business. The chief executive cannot earn
:21:30. > :21:36.more than four times the value of the lowest-paid worker. It means we
:21:36. > :21:42.provide education programmes. Our environmental impact means that we
:21:42. > :21:52.manage ancient woodlands in Lincolnshire. Behind me are a group
:21:52. > :21:58.of young people. They are being tutored by our ranger, who is
:21:58. > :22:07.showing them how to prune trees. It is very important to learn Whitlam
:22:07. > :22:16.skills and will add to their CV21 to try and get back to work. When
:22:16. > :22:24.it comes to spring, the branch will regrow. I had a real road to
:22:24. > :22:28.Damascus and that is how I get involved. I work for a drug company
:22:28. > :22:38.and make the social entrepreneur 20 years ago. He showed that making
:22:38. > :22:39.
:22:39. > :22:44.money is good when society benefits. Here we are in part of the wood
:22:44. > :22:50.where we need at three taken down. The Forester is showing the learner
:22:50. > :23:00.how to take down the chief safely and how to cut it down and sell it
:23:00. > :23:10.as firewood. You get some trees that are too rotten. We have just
:23:10. > :23:17.been maintaining the forest, really. Social enterprise faces many
:23:17. > :23:21.challenges. Here, we face at various challenges, such as getting
:23:21. > :23:26.planning permission and been accepted by other landowners,
:23:26. > :23:31.because we're in a place which has public access. But it is just as
:23:31. > :23:36.difficult getting other people to accept that we are a business. Just
:23:36. > :23:42.because we make a profit, it goes back into the local community and
:23:42. > :23:49.that is difficult for some people to grasp. This woodland writ relies
:23:49. > :23:56.on a profit to help it survive. A lot of social enterprises are set
:23:56. > :24:01.up with a lot of good will. But you simply need the backing for what
:24:01. > :24:08.you do. We have managed to turn this derelict would London to what
:24:08. > :24:11.you CTD into the profitable, manageable business. Now Exwick,