Pedestrians walk past the Bank of England in central London October 18, 2011.STRINGER/UK
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The solution? More money for small business
Bank of England governor Mervyn King on Tuesday said the British government should set incentives for banks to boost lending to credit-strapped small and medium-sized businesses, Reuters is reporting.
Mr. King told the Treasury Select Committee the BoE should not simply be told to lend to individual sectors or companies, and that the government has to address the lack of funding for smaller firms. "Measures that are directed particularly on finding incentives for banks to lend specifically to SMEs ... is something which is appropriate for the government to do, and they have instruments to do it, which we don't.
"Fiscal incentives can persuade banks to lend to SMEs, or use of direct ownership of the biggest lenders."
The British government agreed to a deal in February with its five largest banks to increase lending to SMEs, but Project Merlin has had little impact. And Finance Minister George Osborne announced a plan to funnel loans to small and medium-sized companies through "credit easing" earlier this month, although the treasury has yet to provide details.
Banks are still under enormous market pressure to de-leverage, which hurts SMEs, particularly because of their unique dependence on bank financing. The banks have said companies are not borrowing because of the dire economic outlook.
A lack of bank credit for small and medium-sized businesses is widely blamed for contributing to Britain's slow economic recovery since the financial crisis.
Just-Eat Canada eats its rival
Online food ordering service Just-Eat Canada Inc. told The Canadian Press it has bought rival GrubCanada Inc. for an undisclosed amount. Toronto-based Just-Eat Canada, a subsidiary of the London-based Just-Eat Group, added the acquisition will give its customers access to more than 1,000 delivery restaurants across the country. "Our acquisition of GrubCanada.com is an exciting step in strengthening our leadership as Canada's best, most convenient and reliable online food ordering service for consumers to order food over the Internet and by mobile phone," Just-Eat Canada managing director David Power said in a statement. "This deal adds to an exciting month for Just-Eat.ca, having just launched in Quebec with a bilingual website." The addition of privately held GrubCanada.com will make more than 200 neighbourhood restaurants in Ontario and British Columbia available to Just-Eat Canada. The company's website allows users to order food from local restaurants in cities including Vancouver; London, Ont.; Kitchener, Ont.; Guelph, Ont.; Toronto; Ottawa; and Montreal.
Fortress workers walk out
Construction work on the dissolving pulp conversion and biomass cogeneration projects at the Fortress Paper mill in Thurso, Que., have been suspended because of a walkout by unionized employees of contractors hired for the job, The Canadian Press reports. Fortress Paper said in a news release that it understands the "unexpected walkout" was a result of opposition to a bill proposed by the Quebec government and not as a result of disputes with the company or the contractors who employ them. "The walkout is affecting construction projects across the province of Quebec," the company said. The company said it was "hopeful" that the issues relating to the walkout can be resolved quickly and that the planned restart of the mill and the start of dissolving pulp production scheduled for early November will experience only a minor delay. Fortress is a leading international producer of security and other specialty papers and products, operating mills in Switzerland and Germany as well as Thurso, and CEO Chad Wasilenkoff recently sat down in The Globe and Mail's studio for an interview segment.
EVENTS AND KEY DATES
Accounting basics from a CMA
Familiarize yourself with some basic accounting terminology, as well as three of the most common financial statements, at the Small Business Accounting Basics session at The Business link in Edmonton and Calgary on Thursday, from 1 p.m. to 2:30 p.m. The event will review methods of keeping receipts and recording business transactions, what a ledger is and how to produce monthly statements, and available resources to help you with tax planning, financing and government regulations. The presenter is CMA Steve Bruns from Grant MacEwan University. Cost is $15, more details available here.
A decade of dreams
The fourth annual Superwomen & Friends: Decade of Dreams takes place in Vancouver on Nov. 5th. The "glamorous gala celebrates a decade of developing and fulfilling dreams" at Women in Leadership and benefits the WiL mentorship program. Connect with hundreds of "superwomen" in the community at an evening of fashion, entertainment, makeovers, and prizes. Takes place from 5:30 p.m. to 10 p.m., at the Fairmont Waterfront Hotel. Early bird tickets are $150.
EDITOR'S PICKS FROM REPORT ON SMALL BUSINESS
'The West Coast lotus-eaters lifestyle'
In Greater Victoria, around 75 per cent of the region's companies have four or fewer employees; a figure significantly higher than the national average of 55 per cent, according to Statistics Canada numbers for 2009. It appears those companies aren't consumed with taking their micro-businesses into macro territory. "I call it the West Coast lotus-eaters lifestyle," said Ken Stratford, chief executive officer of Business Victoria. But there are businesses that have survived those rough first three to four years and are ready to grow.
FROM THE ROSB ARCHIVES
Learning practical tips from other women
"Rotman's Next Steps program is a very different concept, as female role models who have 'walked the talk' do the teaching," says Jacoline Loewen, a partner in the corporate finance firm Loewen and Partners and a lecturer in the program. "It is about learning practical tips and strategies from women who have achieved big results, and that is a very powerful motivator." One of the reasons Next Steps has resonated so well with its first three cohorts, guest columnist Ruth Bastedo wrote back in May, is that it confirms serious business growth is a real possibility. As a woman, if you meet other women who have built businesses, who have invested or bought into companies, or who have brokered deals with female-owned companies, you start to think "what's the big deal? I'm going to go out there and find some private equity."
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