:00:07. > :00:09.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:10. > :00:11.Fighting for funding, more and more small businesses
:00:12. > :00:14.are turning to credit cards and even crowd funding to get the cash
:00:15. > :00:34.Live from London, that's our top story on Monday, 12th September.
:00:35. > :00:36.The squeeze on funding comes as banks consider charging firms
:00:37. > :00:43.Also in the programme, Tata Steel gets ready
:00:44. > :00:49.We'll find out if its troubled British business
:00:50. > :00:56.After Friday's big sell-off on Wall Street, European markets
:00:57. > :01:00.are playing catch-up and heading one way - down.
:01:01. > :01:05.Fancy taking one of these for a spin?
:01:06. > :01:15.We'll be talking to the boss of one of the leading firms in the sector.
:01:16. > :01:18.He'll give us the lowdown on who is buying what.
:01:19. > :01:24.Today we want to know - are you struggling to raise money
:01:25. > :01:42.We're going to start today with money or a lack of it.
:01:43. > :01:48.Poor access to finance is forcing more small businesses
:01:49. > :01:50.across Europe and the US to turn to credit cards and crowd
:01:51. > :01:54.Today's report from Hiscox insurance shows just how much pressure
:01:55. > :01:59.businesses are under, given the current economic climate.
:02:00. > :02:03.It found that 22 percent of small and medium-sized enterprises,
:02:04. > :02:05.SMEs, are now finding it harder to access bank financing.
:02:06. > :02:15.What's worrying is that 17% of those small firms are now using a credit
:02:16. > :02:20.card to fund the business and that's also been rising steadily
:02:21. > :02:24.10 percent are even considering crowd sourcing
:02:25. > :02:26.cash through peer-to-peer lending sites to fund their business.
:02:27. > :02:29.The report also shows just how difficult it is to succeed with 40
:02:30. > :02:33.percent of people who set up their business in the past four
:02:34. > :02:35.years still relying on income from outside sources rather
:02:36. > :02:45.66 percent of small business owners reported that their revenues had
:02:46. > :02:57.Jag Singh, digital expert and entrepreneur, is with me.
:02:58. > :03:06.Good to see you. Before we get top tips for those struggling to get
:03:07. > :03:08.funding, why are we in this situation? Surely the banks have
:03:09. > :03:13.been pressurised and told by governments to lend, and that will
:03:14. > :03:16.boost economic growth? They have. The package earlier highlighted
:03:17. > :03:21.that. Some banks are considering charging for deposits to larger
:03:22. > :03:25.businesses. I have got to qualify that there has never been a better
:03:26. > :03:31.time for anyone to start their own business. You have got government
:03:32. > :03:36.departments, big business, local government, business angels, angel
:03:37. > :03:40.investors, all singing of the same crib sheet. It is a bit annoying
:03:41. > :03:44.that banks haven't got the memo. There is this boy is left behind by
:03:45. > :03:51.the banks which is being filled why others. -- this void. Peer to peer
:03:52. > :03:55.lending platforms can fill in those gaps. That is the good news but it
:03:56. > :04:00.isn't easy to get the attention you need to raise money when it comes to
:04:01. > :04:02.grant funding. If you are a small business, you are not a sexy
:04:03. > :04:06.technology business, something people are keen to invest in, it is
:04:07. > :04:10.difficult to get the money that you need. But if you just go to the bank
:04:11. > :04:23.and say this is my business plan and I need funding, that is easier. It
:04:24. > :04:26.is. We are in a Catch-22 situation where banks have never been good at
:04:27. > :04:28.lending to people without credit or something to show for it. In the
:04:29. > :04:30.same way, banks require lots of collateral from businesses, and bees
:04:31. > :04:35.fledgling businesses which don't have assets to up. We are finding
:04:36. > :04:38.that entrepreneurs have got to remortgage their homes, dip into
:04:39. > :04:43.credit card funding, the bank of mum and dad, not just for homes now.
:04:44. > :04:47.Lots of entrepreneurs borrow money from friends and family. I think
:04:48. > :04:51.that is the way it has been for the last 40 or 50 years. Those closest
:04:52. > :04:55.to you believe in you and invest in you and they want to see you
:04:56. > :05:00.succeed. That is your best chance of getting funding for your business.
:05:01. > :05:04.What is the advice for investors as well? Those on the other side of
:05:05. > :05:09.crowdfunding and have got ?1000 or something to put into a start-up?
:05:10. > :05:13.How do you make sure you make the right choice and don't throw your
:05:14. > :05:18.money down the drain? The best way to do that is to pick the best
:05:19. > :05:22.crowdfunding platform and no two platforms are exactly alike. In the
:05:23. > :05:26.last few years we have seen sector specific advice from people with
:05:27. > :05:29.experience of the industry. If you are in the retail industry, go to a
:05:30. > :05:33.platform that has people who have actually built businesses in the
:05:34. > :05:38.retail industry investing on these platforms. Just really briefly, if
:05:39. > :05:41.you are starting a business, you have got to think outside the box
:05:42. > :05:45.when it comes to funding. Absolutely. Talk to everyone you
:05:46. > :05:49.can, as many business angels as you can, talk to the government, they
:05:50. > :05:52.have services for fledgling entrepreneurs and also big
:05:53. > :05:56.businesses have set up in debate is where they are trying to pass on
:05:57. > :06:02.their learning to smaller start-ups. Thank you for your time. It is about
:06:03. > :06:08.angels, incubators, crowds, peers. It is all happening. Keep your
:06:09. > :06:11.comments coming in. Natalia says she launched a business using
:06:12. > :06:15.crowdfunding and it was a simple process and really worked for her.
:06:16. > :06:19.Another one here from EV. It is not for everyone. Beware because there
:06:20. > :06:24.are expenses when you start out and if you missed your target to raise
:06:25. > :06:25.money and it can be pretty shameful. Keep your comments coming in. Other
:06:26. > :06:29.stories today: Electric car maker Tesla says it
:06:30. > :06:31.will update its cars' autopilot function with new safety features
:06:32. > :06:33.to prevent collisions. Chief executive Elon Musk says
:06:34. > :06:36.that the cars would soon make greater use of the on-board radar
:06:37. > :06:40.to detect obstacles ahead. The announcement comes just months
:06:41. > :06:42.after a Tesla driver died when his car hit
:06:43. > :06:44.a trailer that the autopilot Samsung is now asking people to stop
:06:45. > :06:52.using their Galaxy Note 7 smartphones immediately and exchange
:06:53. > :06:55.them as soon as possible. The company is undertaking a global
:06:56. > :06:57.recall following reports Multiple global airlines have either
:06:58. > :07:04.banned the Galaxy Note 7 from flights or asked users
:07:05. > :07:07.to keep them turned off Shares in the tech giant have now
:07:08. > :07:22.fallen by more than 8 Lots of stories on our website as
:07:23. > :07:25.usual. This has been highlighted. The British Chambers of Commerce is
:07:26. > :07:29.predicting a sharp slow down in the British economy in the wake of the
:07:30. > :07:34.Brexit boat. They expect the UK economy to grow 1.8% this year as
:07:35. > :07:39.opposed to 2.2%, which was their estimate in March of this year. Lots
:07:40. > :07:44.more stories on the website so take a look when you have got time.
:07:45. > :07:49.Over in Asia, there's more bad news for smartphone maker Samsung.
:07:50. > :07:54.The company's shares have plunged after Samsung recalled
:07:55. > :07:57.its latest Galaxy Note 7 due to a spate of incidents
:07:58. > :08:00.Tim McDonald in Singapore can tell us more.
:08:01. > :08:06.We touched on it then, airlines banning people from taking them on
:08:07. > :08:09.flights. What more do we know? It is very bad news for Samsun, which is
:08:10. > :08:16.telling everyone to turn it off, put it down, and go back to your old
:08:17. > :08:19.telephone, at least until you can get in for a replacement. The
:08:20. > :08:29.exploding batteries saga has been going on for a while. 2.5 million
:08:30. > :08:36.Galaxy Notes were recalled. Passengers have put them in checked
:08:37. > :08:40.luggage. But the Federal aviation authority, followed by a multitude
:08:41. > :08:44.of other safety bodies, and the US product safety commission, they all
:08:45. > :08:50.got involved telling owners not to use them altogether. Regal will be
:08:51. > :08:55.some inks -- the recall will be very expensive, which is not such a great
:08:56. > :08:59.look and it wiped $14 billion off the market capital company, all in
:09:00. > :09:05.the same week when Apple launched the latest version of the iPhone.
:09:06. > :09:10.They are then nearest rival. Thank you. A look at the numbers. That is
:09:11. > :09:14.all we need to know. Tokyo shares slumping today, extending the global
:09:15. > :09:18.sell-off that we saw in America after the Federal Reserve officials
:09:19. > :09:22.said they would potentially back and interest rates rise there as soon as
:09:23. > :09:25.this month. The speculation was that they might act as soon as this month
:09:26. > :09:29.but that appeared to be off the table following the string of weak
:09:30. > :09:34.economic data, but the comments suggest that may not be the case.
:09:35. > :09:37.Let's look at what is happening in Europe following the lead set by
:09:38. > :09:41.Wall Street on Friday. That is the current picture. We will assess that
:09:42. > :09:46.in a moment but first let's go stateside and see what is happening
:09:47. > :09:50.on Wall Street. This week we are turning our attention to economic
:09:51. > :09:53.data. This data has been made even more important given the
:09:54. > :09:58.disappointing jobs numbers for the month of August in the USA. Before
:09:59. > :10:04.we can get to the data, let's talk about Monday. The CEO of JP Morgan
:10:05. > :10:07.Chase will be speaking at the economic club in Washington, DC. The
:10:08. > :10:12.conversation is expected to cover the state of the US economy, current
:10:13. > :10:16.regulatory environment and economic and financial issues that the next
:10:17. > :10:22.President will likely face. On Thursday we will get a key measure
:10:23. > :10:26.of US retail sales. These numbers are important as two thirds of
:10:27. > :10:35.America's economy depends on consumer spending. Finally on Friday
:10:36. > :10:38.we get a look at information, the US Consumer Prices Index is revealed.
:10:39. > :10:44.Inflation is one of two really key data points for the Federal Reserve,
:10:45. > :10:48.America's central bank. We have got Richard Fletcher with us this
:10:49. > :10:53.morning from The Times. Nice to see you. Looking behind me, not looking
:10:54. > :10:58.good. Asia was grim. Friday was a massive fall on Wall Street. But it
:10:59. > :11:02.in perspective. Is it all about what that Governor said on Friday?
:11:03. > :11:10.Partly. And partly about Mario Draghi on Thursday. The markets have
:11:11. > :11:14.rallied in recent months on the belief that there would be more
:11:15. > :11:19.stimulus and central banks. We wouldn't see a rate rise in the USA.
:11:20. > :11:24.And what has spooked the market is we have had a strident message from
:11:25. > :11:29.the UCB on Thursday, which was no more for the moment, and then the
:11:30. > :11:34.Fed, the President of the Boston Fed... And I suppose what upset the
:11:35. > :11:38.market was the bad economic data from the USA, and they had ruled out
:11:39. > :11:43.the idea of a rate rise in September. One in five chance. The
:11:44. > :11:49.fact that he was talking about the possibility of a rate rise spooked
:11:50. > :11:52.the market and now they have a one in three chance at the next meeting
:11:53. > :11:55.and that is why we are seeing the sell-off of expertise. It is
:11:56. > :11:58.interesting because we know that investors are fickle but looking
:11:59. > :12:06.around the world at where to put your money for the biggest return,
:12:07. > :12:10.that means we see volatility. Yes, and outside the economics we are
:12:11. > :12:15.starting to see that there is a cost to the central bank easing. Problems
:12:16. > :12:19.with pension funds, people chasing yield into more risky investments.
:12:20. > :12:24.This central bank stimulus that we have seen since the financial
:12:25. > :12:28.crisis, I mean, politicians and the general public are working out that
:12:29. > :12:32.it isn't free. There is a cost to this. Whether that is pension
:12:33. > :12:39.deficits rising or savers not getting a return. There appears to
:12:40. > :12:42.be noise around whether this is working and a question over how much
:12:43. > :12:47.longer central banks can continue to pump this money into the economy.
:12:48. > :12:50.The plot thickens. Thank you. Richard will return to talk about
:12:51. > :12:56.several other stories in the papers including coconuts, coconut milk,
:12:57. > :12:59.the place to put your money apparently. And a lack of coconuts.
:13:00. > :13:03.We will explain all. Still to come: Riding
:13:04. > :13:05.a multi-million-dollar We speak to the man you go
:13:06. > :13:09.to if you have the cash Sadly that is not really in our
:13:10. > :13:18.price range just now in this job. You're with Business Live from BBC
:13:19. > :13:20.News. Trade unions are gathering
:13:21. > :13:22.for the TUC's annual Our business correspondent
:13:23. > :13:34.John Moylan is there. Nice to see you. It seems the EU
:13:35. > :13:38.referendum is the key talking point. Tell us what people are saying. Yes,
:13:39. > :13:42.the first gathering of trade unions since the momentous vote to leave
:13:43. > :13:46.the EU. The rallying cry here has been as workers must not pay the
:13:47. > :13:50.price for Brexit. What they are getting is that there are many
:13:51. > :13:55.rights that we enjoy as workers here in the UK that are enshrined in EU
:13:56. > :14:00.law. Unions want to make sure that in the years ahead, as we move to
:14:01. > :14:05.exit the EU, that those rights are not going to be negotiated away,
:14:06. > :14:08.eroded in any way, and they will be maintained. That has been a big
:14:09. > :14:12.theme and it is something that unions are still trying to get to
:14:13. > :14:16.grips with. Just talk us through the agenda for the session. It has been
:14:17. > :14:21.a pretty turbulent time for the unions, and also as far as support
:14:22. > :14:25.for the Labour Party is concerned, what are we expecting to hear in
:14:26. > :14:30.regards to that? Interestingly, Jeremy Corbyn, the leader of the
:14:31. > :14:35.Labour Party, will be down here at the event, on the fringes of the
:14:36. > :14:39.event this evening and tomorrow. One of the big talking points today is
:14:40. > :14:45.the groves of casualisation and insecure employment in Britain,
:14:46. > :14:48.which has been identified with a firm like Sports Direct where
:14:49. > :14:51.conditions in their big warehouse were described as being like a
:14:52. > :14:56.Victorian workhouse. Unions are stepping up pressure on firms that
:14:57. > :14:59.use these insecure working models. Firms like courier firms and taxi
:15:00. > :15:03.firms, which have a lot of people on their books but they are all
:15:04. > :15:07.self-employed, so they don't enjoy basic rights. The head of the TUC
:15:08. > :15:10.will say that greedy firms treat their workers like animals and they
:15:11. > :15:28.will have no place to hide. A look at the BBC web page, Business
:15:29. > :15:35.Live page, Primmark owner has a ?2 million pensions deficit. A
:15:36. > :15:39.successful retailer, Primark. It is as a result of higher interest
:15:40. > :15:44.charges next year. A sadly familiar tale as far as many pension pots are
:15:45. > :15:49.concerned. Laying out plans there about how they intend to plug the
:15:50. > :15:56.gap in the fund. There is lots more on the Business Live page and there
:15:57. > :16:00.is more on crowdfunding, the ways to raise funds if you need to.
:16:01. > :16:02.You're watching Business Live. Our top story:
:16:03. > :16:04.Small and medium sized business in Europe and America
:16:05. > :16:12.are finding it increasingly difficult to access funding.
:16:13. > :16:15.According to Hiscox Insurance, many are turning to crowdfunding
:16:16. > :16:20.or credit cards to finance their operations.
:16:21. > :16:29.Let's look at the financial markets. It is a sea of red. Speculation
:16:30. > :16:34.about a rise in rates in the United States. A sell-off across-the-board
:16:35. > :16:40.in early trade, really following the lead set by Asia and the US.
:16:41. > :16:48.Super yachts are one of the ultimate status symbols.
:16:49. > :16:50.Little surprise then that the rich and famous are keen
:16:51. > :16:53.to get their hands on one with Russian oligarchs,
:16:54. > :16:59.Gulf royalty and successful company bosses all driving up demand.
:17:00. > :17:08.And pop stars, celebrities, they are valued at $22 billion today, the
:17:09. > :17:10.global super yacht industry can be lucrative for companies that get
:17:11. > :17:14.their business models right. Fraser Yachts are one
:17:15. > :17:16.of the companies that's vying They specialise in super yachts over
:17:17. > :17:20.30 metres in length. For those of us that rely on more
:17:21. > :17:23.mundane forms of transport, that's the length of two
:17:24. > :17:25.double decker buses. The company is currently
:17:26. > :17:28.advertising one yacht, But you could save some
:17:29. > :17:31.money and charter it Raphael Sauleau is Chief
:17:32. > :17:46.Executive of Fraser Yachts. Good morning. Good morning. Thank
:17:47. > :17:51.you very much for coming in. Pleasure. You have been the boss of
:17:52. > :17:56.this company since April this year? Yes. Tell us where you were before
:17:57. > :18:01.and how you journeyed to become a Chief Executive of a company like
:18:02. > :18:07.this? I was with a management company so dealing with larger
:18:08. > :18:11.boats, cargo ships and now I'm looking after yachts, hotels, and
:18:12. > :18:16.other properties and then I ended up with Fraser Yachts which is a great
:18:17. > :18:20.company. It is an interesting industry. Let's talk about the
:18:21. > :18:25.element of a status symbol. We talked about the price tag. Even if
:18:26. > :18:29.you were to rent it out every day at $250,000 for the week and you would
:18:30. > :18:33.never make your money back. These are the ultimate things of someone
:18:34. > :18:39.who has got plenty of money to spare and it is not an investment, it is a
:18:40. > :18:43.toy? That's a toy, but it is very emotional for individuals who like
:18:44. > :18:47.to invest in super yachts. That's a journey from the day they order the
:18:48. > :18:51.yacht, to the day they build the yacht, to the day they collect the
:18:52. > :18:55.yacht. Yes, of course, it is like buying a big house, so you get
:18:56. > :19:00.personally involved in the concept and the project and then it is for
:19:01. > :19:04.your own pleasure and some like to use it for commercial purposes as
:19:05. > :19:07.well. We assume your clients are difficult, hard to please, have
:19:08. > :19:13.weird requests, is that true? Or is that just our, you know, superficial
:19:14. > :19:17.sort of idea of the rich and famous? No, some of them like to know what
:19:18. > :19:20.they're going to have and they know what they want, but they're not
:19:21. > :19:26.necessarily difficult or hard to please. It is like you and I when we
:19:27. > :19:31.buy a house, we want to buy curtains or a certain type of carpet. Some of
:19:32. > :19:34.them have very specific ideas so they can come across very difficult,
:19:35. > :19:40.but at the end of the day when you invest that amount of money in an
:19:41. > :19:45.asset, you want to make sure it fits your expectations. Naming no names,
:19:46. > :19:54.give us some examples of strange requests? Some of them, they would
:19:55. > :20:06.like to have a special fit for a yacht or a helicopter pad. But if
:20:07. > :20:11.they have a supersized yacht, I mean we talk about 30-feet to 100 feet,
:20:12. > :20:15.the bigger ones you have to put the anchor down at sea and get in your
:20:16. > :20:28.smaller one to get into the really beautiful marinas on the the Riveria
:20:29. > :20:32.for example? Some countries don't follow by having adequate Marines.
:20:33. > :20:46.Some of the tenders can be massive too. So you have for example, we
:20:47. > :20:52.have an exploration yacht. He has to go in the tender to reach the marred
:20:53. > :20:57.Rhine that. Asia is really trying to get involved. Correct. There is a
:20:58. > :21:01.lot there, and it is not just about buying and selling, it is about the
:21:02. > :21:05.making and the business behind the business, isn't it? I think Asia has
:21:06. > :21:08.grasped the importance of the business because it is not a
:21:09. > :21:14.playground for the rich and famous, it is a big industry, where you have
:21:15. > :21:20.mariners and the small boutiques and shops... A lot of employment? A lot
:21:21. > :21:28.of employment as well. Asia took a lot of time to understand that fact.
:21:29. > :21:32.The Med is still the place to be in the summer for 86% of the market and
:21:33. > :21:39.then you have the Caribbean fort winter season. It is fascinating. I
:21:40. > :21:45.love stuff like this? Who doesn't? It is about having the biggest one.
:21:46. > :21:50.Someone gets a bigger one and you cut your's in half and you add
:21:51. > :21:55.another bitment because you can do that these days? You can. That's
:21:56. > :21:56.what I will be considering this year. Thank you. Thank you for
:21:57. > :21:59.having me. To the Indian business capital
:22:00. > :22:01.Mumbai now where Tata Steel will release its latest set
:22:02. > :22:03.of quarterly results It could be a busy week
:22:04. > :22:07.for the company which, in the coming days, is also expected
:22:08. > :22:10.to offer an update on its recent attempts to sell off
:22:11. > :22:12.its troubled UK operations. Sameer Hashmi has been assessing
:22:13. > :22:14.Tata Steel's fortunes. If you talk about Tata Steel,
:22:15. > :22:17.there are two sides to the company, the struggling European operation
:22:18. > :22:22.which is at the centre of attention. It's estimated that the company has
:22:23. > :22:25.been losing over ?1 million every day when it comes
:22:26. > :22:29.to its UK operations. It's also its largest
:22:30. > :22:33.market in Europe. But if you look at Tata Steel's
:22:34. > :22:36.performance here in India, The company has been
:22:37. > :22:40.consistently profitable. In fact in the last financial
:22:41. > :22:42.year it made a profit of over $700 million,
:22:43. > :22:45.but the problems in the European market have been weighing the larger
:22:46. > :22:48.company down for some time now. Last year, Tata Steel reported
:22:49. > :22:51.a loss of nearly $500 million. Well, analysts expect the company
:22:52. > :22:58.to keep making profits here in India because demand for steel
:22:59. > :23:03.is rising over here. Tata Steel's plans of selling
:23:04. > :23:08.off its UK operations hit a road Now, the company is in talks
:23:09. > :23:15.with other steelmakers to merge its operations
:23:16. > :23:19.in the European markets. And investors will be interested
:23:20. > :23:22.to know if those plans We will get the numbers from Tata in
:23:23. > :23:53.a few hours' time. The Caribbean is running out of
:23:54. > :23:58.coconuts. Coconut water is a really trendy drink. My kids brought
:23:59. > :24:04.containers home. Rihanna promotes it. Coconut fell out of fashion.
:24:05. > :24:08.They were seen as adding to high cholesterol so you saw a huge fall
:24:09. > :24:12.in the number of farms in the Caribbean and it is now fashionable
:24:13. > :24:17.and there aren't enough of them and they're not very good the ones that
:24:18. > :24:21.are there. It is coconut oil. It is the fad of cooking with health
:24:22. > :24:25.stuff, not only drinking the stuff, but cooking with it and everything
:24:26. > :24:32.else. In two weeks' time there will be a health scare the other way!
:24:33. > :24:38.Amber Rudd is admitting Britain may have to pay to visit Europe. Just
:24:39. > :24:42.explain. This was, so it came out over the weekend and effectively, I
:24:43. > :24:44.mean they are not ruling in or out either way, but they are saying
:24:45. > :24:54.ahead of negotiations with Europe and Europe are bringing in a sort of
:24:55. > :24:57.visa waiver programme for those outside the Schengen Agreement and
:24:58. > :25:01.that will be the UK and therefore, ahead of the negotiations there is
:25:02. > :25:08.talk that we might have to pay 60 euros every time we want to pop over
:25:09. > :25:13.to France or go to the beach in Majorca. The Greece debt crisis has
:25:14. > :25:18.fallen away from the headlines. Deliver reforms or lose the bail out
:25:19. > :25:22.cash Greeks are told. That's a familiar headline. It is back.
:25:23. > :25:27.According to Europe they have only delivered two of the 15 reforms they
:25:28. > :25:32.need for the two trillion or two billion of funding and therefore,
:25:33. > :25:36.guess what? Greece is back! Interesting actually. The Prime
:25:37. > :25:41.Minister held that little summit last week, didn't he with Francois
:25:42. > :25:47.Hollande and those crew, sort of looking at the future. The economic
:25:48. > :25:52.challenges. Hey-ho, we will keep an eye on it. That's another Business
:25:53. > :25:54.Live. Yes, it has been fun. We will see you, same place tomorrow.
:25:55. > :26:10.Tomorrow. Bye-bye. Hello. It is a dry enough and bright
:26:11. > :26:13.enough start for central and eastern parts of British Isles because you
:26:14. > :26:16.are a long way from the weather front that's dominating the weather
:26:17. > :26:19.scene across Western Scotland and Northern Irelandment one of the
:26:20. > :26:20.other factors of being away from the frontal