12/09/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


Fighting for funding, more and more small businesses


are turning to credit cards and even crowd funding to get the cash


Live from London, that's our top story on Monday, 12th September.


The squeeze on funding comes as banks consider charging firms


Also in the programme, Tata Steel gets ready


We'll find out if its troubled British business


After Friday's big sell-off on Wall Street, European markets


are playing catch-up and heading one way - down.


Fancy taking one of these for a spin?


We'll be talking to the boss of one of the leading firms in the sector.


He'll give us the lowdown on who is buying what.


Today we want to know - are you struggling to raise money


We're going to start today with money or a lack of it.


Poor access to finance is forcing more small businesses


across Europe and the US to turn to credit cards and crowd


Today's report from Hiscox insurance shows just how much pressure


businesses are under, given the current economic climate.


It found that 22 percent of small and medium-sized enterprises,


SMEs, are now finding it harder to access bank financing.


What's worrying is that 17% of those small firms are now using a credit


card to fund the business and that's also been rising steadily


10 percent are even considering crowd sourcing


cash through peer-to-peer lending sites to fund their business.


The report also shows just how difficult it is to succeed with 40


percent of people who set up their business in the past four


years still relying on income from outside sources rather


66 percent of small business owners reported that their revenues had


Jag Singh, digital expert and entrepreneur, is with me.


Good to see you. Before we get top tips for those struggling to get


funding, why are we in this situation? Surely the banks have


been pressurised and told by governments to lend, and that will


boost economic growth? They have. The package earlier highlighted


that. Some banks are considering charging for deposits to larger


businesses. I have got to qualify that there has never been a better


time for anyone to start their own business. You have got government


departments, big business, local government, business angels, angel


investors, all singing of the same crib sheet. It is a bit annoying


that banks haven't got the memo. There is this boy is left behind by


the banks which is being filled why others. -- this void. Peer to peer


lending platforms can fill in those gaps. That is the good news but it


isn't easy to get the attention you need to raise money when it comes to


grant funding. If you are a small business, you are not a sexy


technology business, something people are keen to invest in, it is


difficult to get the money that you need. But if you just go to the bank


and say this is my business plan and I need funding, that is easier. It


is. We are in a Catch-22 situation where banks have never been good at


lending to people without credit or something to show for it. In the


same way, banks require lots of collateral from businesses, and bees


fledgling businesses which don't have assets to up. We are finding


that entrepreneurs have got to remortgage their homes, dip into


credit card funding, the bank of mum and dad, not just for homes now.


Lots of entrepreneurs borrow money from friends and family. I think


that is the way it has been for the last 40 or 50 years. Those closest


to you believe in you and invest in you and they want to see you


succeed. That is your best chance of getting funding for your business.


What is the advice for investors as well? Those on the other side of


crowdfunding and have got ?1000 or something to put into a start-up?


How do you make sure you make the right choice and don't throw your


money down the drain? The best way to do that is to pick the best


crowdfunding platform and no two platforms are exactly alike. In the


last few years we have seen sector specific advice from people with


experience of the industry. If you are in the retail industry, go to a


platform that has people who have actually built businesses in the


retail industry investing on these platforms. Just really briefly, if


you are starting a business, you have got to think outside the box


when it comes to funding. Absolutely. Talk to everyone you


can, as many business angels as you can, talk to the government, they


have services for fledgling entrepreneurs and also big


businesses have set up in debate is where they are trying to pass on


their learning to smaller start-ups. Thank you for your time. It is about


angels, incubators, crowds, peers. It is all happening. Keep your


comments coming in. Natalia says she launched a business using


crowdfunding and it was a simple process and really worked for her.


Another one here from EV. It is not for everyone. Beware because there


are expenses when you start out and if you missed your target to raise


money and it can be pretty shameful. Keep your comments coming in. Other


stories today: Electric car maker Tesla says it


will update its cars' autopilot function with new safety features


to prevent collisions. Chief executive Elon Musk says


that the cars would soon make greater use of the on-board radar


to detect obstacles ahead. The announcement comes just months


after a Tesla driver died when his car hit


a trailer that the autopilot Samsung is now asking people to stop


using their Galaxy Note 7 smartphones immediately and exchange


them as soon as possible. The company is undertaking a global


recall following reports Multiple global airlines have either


banned the Galaxy Note 7 from flights or asked users


to keep them turned off Shares in the tech giant have now


fallen by more than 8 Lots of stories on our website as


usual. This has been highlighted. The British Chambers of Commerce is


predicting a sharp slow down in the British economy in the wake of the


Brexit boat. They expect the UK economy to grow 1.8% this year as


opposed to 2.2%, which was their estimate in March of this year. Lots


more stories on the website so take a look when you have got time.


Over in Asia, there's more bad news for smartphone maker Samsung.


The company's shares have plunged after Samsung recalled


its latest Galaxy Note 7 due to a spate of incidents


Tim McDonald in Singapore can tell us more.


We touched on it then, airlines banning people from taking them on


flights. What more do we know? It is very bad news for Samsun, which is


telling everyone to turn it off, put it down, and go back to your old


telephone, at least until you can get in for a replacement. The


exploding batteries saga has been going on for a while. 2.5 million


Galaxy Notes were recalled. Passengers have put them in checked


luggage. But the Federal aviation authority, followed by a multitude


of other safety bodies, and the US product safety commission, they all


got involved telling owners not to use them altogether. Regal will be


some inks -- the recall will be very expensive, which is not such a great


look and it wiped $14 billion off the market capital company, all in


the same week when Apple launched the latest version of the iPhone.


They are then nearest rival. Thank you. A look at the numbers. That is


all we need to know. Tokyo shares slumping today, extending the global


sell-off that we saw in America after the Federal Reserve officials


said they would potentially back and interest rates rise there as soon as


this month. The speculation was that they might act as soon as this month


but that appeared to be off the table following the string of weak


economic data, but the comments suggest that may not be the case.


Let's look at what is happening in Europe following the lead set by


Wall Street on Friday. That is the current picture. We will assess that


in a moment but first let's go stateside and see what is happening


on Wall Street. This week we are turning our attention to economic


data. This data has been made even more important given the


disappointing jobs numbers for the month of August in the USA. Before


we can get to the data, let's talk about Monday. The CEO of JP Morgan


Chase will be speaking at the economic club in Washington, DC. The


conversation is expected to cover the state of the US economy, current


regulatory environment and economic and financial issues that the next


President will likely face. On Thursday we will get a key measure


of US retail sales. These numbers are important as two thirds of


America's economy depends on consumer spending. Finally on Friday


we get a look at information, the US Consumer Prices Index is revealed.


Inflation is one of two really key data points for the Federal Reserve,


America's central bank. We have got Richard Fletcher with us this


morning from The Times. Nice to see you. Looking behind me, not looking


good. Asia was grim. Friday was a massive fall on Wall Street. But it


in perspective. Is it all about what that Governor said on Friday?


Partly. And partly about Mario Draghi on Thursday. The markets have


rallied in recent months on the belief that there would be more


stimulus and central banks. We wouldn't see a rate rise in the USA.


And what has spooked the market is we have had a strident message from


the UCB on Thursday, which was no more for the moment, and then the


Fed, the President of the Boston Fed... And I suppose what upset the


market was the bad economic data from the USA, and they had ruled out


the idea of a rate rise in September. One in five chance. The


fact that he was talking about the possibility of a rate rise spooked


the market and now they have a one in three chance at the next meeting


and that is why we are seeing the sell-off of expertise. It is


interesting because we know that investors are fickle but looking


around the world at where to put your money for the biggest return,


that means we see volatility. Yes, and outside the economics we are


starting to see that there is a cost to the central bank easing. Problems


with pension funds, people chasing yield into more risky investments.


This central bank stimulus that we have seen since the financial


crisis, I mean, politicians and the general public are working out that


it isn't free. There is a cost to this. Whether that is pension


deficits rising or savers not getting a return. There appears to


be noise around whether this is working and a question over how much


longer central banks can continue to pump this money into the economy.


The plot thickens. Thank you. Richard will return to talk about


several other stories in the papers including coconuts, coconut milk,


the place to put your money apparently. And a lack of coconuts.


We will explain all. Still to come: Riding


a multi-million-dollar We speak to the man you go


to if you have the cash Sadly that is not really in our


price range just now in this job. You're with Business Live from BBC


News. Trade unions are gathering


for the TUC's annual Our business correspondent


John Moylan is there. Nice to see you. It seems the EU


referendum is the key talking point. Tell us what people are saying. Yes,


the first gathering of trade unions since the momentous vote to leave


the EU. The rallying cry here has been as workers must not pay the


price for Brexit. What they are getting is that there are many


rights that we enjoy as workers here in the UK that are enshrined in EU


law. Unions want to make sure that in the years ahead, as we move to


exit the EU, that those rights are not going to be negotiated away,


eroded in any way, and they will be maintained. That has been a big


theme and it is something that unions are still trying to get to


grips with. Just talk us through the agenda for the session. It has been


a pretty turbulent time for the unions, and also as far as support


for the Labour Party is concerned, what are we expecting to hear in


regards to that? Interestingly, Jeremy Corbyn, the leader of the


Labour Party, will be down here at the event, on the fringes of the


event this evening and tomorrow. One of the big talking points today is


the groves of casualisation and insecure employment in Britain,


which has been identified with a firm like Sports Direct where


conditions in their big warehouse were described as being like a


Victorian workhouse. Unions are stepping up pressure on firms that


use these insecure working models. Firms like courier firms and taxi


firms, which have a lot of people on their books but they are all


self-employed, so they don't enjoy basic rights. The head of the TUC


will say that greedy firms treat their workers like animals and they


will have no place to hide. A look at the BBC web page, Business


Live page, Primmark owner has a ?2 million pensions deficit. A


successful retailer, Primark. It is as a result of higher interest


charges next year. A sadly familiar tale as far as many pension pots are


concerned. Laying out plans there about how they intend to plug the


gap in the fund. There is lots more on the Business Live page and there


is more on crowdfunding, the ways to raise funds if you need to.


You're watching Business Live. Our top story:


Small and medium sized business in Europe and America


are finding it increasingly difficult to access funding.


According to Hiscox Insurance, many are turning to crowdfunding


or credit cards to finance their operations.


Let's look at the financial markets. It is a sea of red. Speculation


about a rise in rates in the United States. A sell-off across-the-board


in early trade, really following the lead set by Asia and the US.


Super yachts are one of the ultimate status symbols.


Little surprise then that the rich and famous are keen


to get their hands on one with Russian oligarchs,


Gulf royalty and successful company bosses all driving up demand.


And pop stars, celebrities, they are valued at $22 billion today, the


global super yacht industry can be lucrative for companies that get


their business models right. Fraser Yachts are one


of the companies that's vying They specialise in super yachts over


30 metres in length. For those of us that rely on more


mundane forms of transport, that's the length of two


double decker buses. The company is currently


advertising one yacht, But you could save some


money and charter it Raphael Sauleau is Chief


Executive of Fraser Yachts. Good morning. Good morning. Thank


you very much for coming in. Pleasure. You have been the boss of


this company since April this year? Yes. Tell us where you were before


and how you journeyed to become a Chief Executive of a company like


this? I was with a management company so dealing with larger


boats, cargo ships and now I'm looking after yachts, hotels, and


other properties and then I ended up with Fraser Yachts which is a great


company. It is an interesting industry. Let's talk about the


element of a status symbol. We talked about the price tag. Even if


you were to rent it out every day at $250,000 for the week and you would


never make your money back. These are the ultimate things of someone


who has got plenty of money to spare and it is not an investment, it is a


toy? That's a toy, but it is very emotional for individuals who like


to invest in super yachts. That's a journey from the day they order the


yacht, to the day they build the yacht, to the day they collect the


yacht. Yes, of course, it is like buying a big house, so you get


personally involved in the concept and the project and then it is for


your own pleasure and some like to use it for commercial purposes as


well. We assume your clients are difficult, hard to please, have


weird requests, is that true? Or is that just our, you know, superficial


sort of idea of the rich and famous? No, some of them like to know what


they're going to have and they know what they want, but they're not


necessarily difficult or hard to please. It is like you and I when we


buy a house, we want to buy curtains or a certain type of carpet. Some of


them have very specific ideas so they can come across very difficult,


but at the end of the day when you invest that amount of money in an


asset, you want to make sure it fits your expectations. Naming no names,


give us some examples of strange requests? Some of them, they would


like to have a special fit for a yacht or a helicopter pad. But if


they have a supersized yacht, I mean we talk about 30-feet to 100 feet,


the bigger ones you have to put the anchor down at sea and get in your


smaller one to get into the really beautiful marinas on the the Riveria


for example? Some countries don't follow by having adequate Marines.


Some of the tenders can be massive too. So you have for example, we


have an exploration yacht. He has to go in the tender to reach the marred


Rhine that. Asia is really trying to get involved. Correct. There is a


lot there, and it is not just about buying and selling, it is about the


making and the business behind the business, isn't it? I think Asia has


grasped the importance of the business because it is not a


playground for the rich and famous, it is a big industry, where you have


mariners and the small boutiques and shops... A lot of employment? A lot


of employment as well. Asia took a lot of time to understand that fact.


The Med is still the place to be in the summer for 86% of the market and


then you have the Caribbean fort winter season. It is fascinating. I


love stuff like this? Who doesn't? It is about having the biggest one.


Someone gets a bigger one and you cut your's in half and you add


another bitment because you can do that these days? You can. That's


what I will be considering this year. Thank you. Thank you for


having me. To the Indian business capital


Mumbai now where Tata Steel will release its latest set


of quarterly results It could be a busy week


for the company which, in the coming days, is also expected


to offer an update on its recent attempts to sell off


its troubled UK operations. Sameer Hashmi has been assessing


Tata Steel's fortunes. If you talk about Tata Steel,


there are two sides to the company, the struggling European operation


which is at the centre of attention. It's estimated that the company has


been losing over ?1 million every day when it comes


to its UK operations. It's also its largest


market in Europe. But if you look at Tata Steel's


performance here in India, The company has been


consistently profitable. In fact in the last financial


year it made a profit of over $700 million,


but the problems in the European market have been weighing the larger


company down for some time now. Last year, Tata Steel reported


a loss of nearly $500 million. Well, analysts expect the company


to keep making profits here in India because demand for steel


is rising over here. Tata Steel's plans of selling


off its UK operations hit a road Now, the company is in talks


with other steelmakers to merge its operations


in the European markets. And investors will be interested


to know if those plans We will get the numbers from Tata in


a few hours' time. The Caribbean is running out of


coconuts. Coconut water is a really trendy drink. My kids brought


containers home. Rihanna promotes it. Coconut fell out of fashion.


They were seen as adding to high cholesterol so you saw a huge fall


in the number of farms in the Caribbean and it is now fashionable


and there aren't enough of them and they're not very good the ones that


are there. It is coconut oil. It is the fad of cooking with health


stuff, not only drinking the stuff, but cooking with it and everything


else. In two weeks' time there will be a health scare the other way!


Amber Rudd is admitting Britain may have to pay to visit Europe. Just


explain. This was, so it came out over the weekend and effectively, I


mean they are not ruling in or out either way, but they are saying


ahead of negotiations with Europe and Europe are bringing in a sort of


visa waiver programme for those outside the Schengen Agreement and


that will be the UK and therefore, ahead of the negotiations there is


talk that we might have to pay 60 euros every time we want to pop over


to France or go to the beach in Majorca. The Greece debt crisis has


fallen away from the headlines. Deliver reforms or lose the bail out


cash Greeks are told. That's a familiar headline. It is back.


According to Europe they have only delivered two of the 15 reforms they


need for the two trillion or two billion of funding and therefore,


guess what? Greece is back! Interesting actually. The Prime


Minister held that little summit last week, didn't he with Francois


Hollande and those crew, sort of looking at the future. The economic


challenges. Hey-ho, we will keep an eye on it. That's another Business


Live. Yes, it has been fun. We will see you, same place tomorrow.


Tomorrow. Bye-bye. Hello. It is a dry enough and bright


enough start for central and eastern parts of British Isles because you


are a long way from the weather front that's dominating the weather


scene across Western Scotland and Northern Irelandment one of the


other factors of being away from the frontal


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