Private equity has returned as an option for cash-starved start-ups, but the long-term future of the sector is still under a cloud.
According to the Australian Financial Review, local funds will start looking for around $4 billion in new capital by the end of the year, although it is still a hard sell and there will be higher borrowing costs.
Recent reports have warned that small firms face a struggle securing funds from banks or investors, with many turning to debt finance instead.
Laws ‘prejudice’ SMEs
The government’s employment laws are skewed against small businesses and hamper their growth, according to a prominent lawyer. Kim Mei-Li Dennis, a director of Jungle Management, says that employment laws “prejudice” employers, especially when they have to fire staff.
Country pubs on the wane
The traditional backbone of many rural towns, the country pub, is dying a slow death, according to the Australian Financial Review. Revenues are down as pubs grapple with drink-driving crackdowns and the movement of young people to urban areas.
Overnight
Wall Street surged to a four-month high while the Australian dollar remained strong, hitting US 94.71 cents.
