MARK BARNES: To grow the economy, give small businesses access to capital

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Instead of circulating dividends at the top of the financial pyramid, some resources must be diverted to its base

Capital is always available; just not always at the right price. You’ll find that the more you need it, the less affordable you’ll find it to be.

There’s a tipping point, where it simply doesn’t make sense to borrow money; where credit becomes a destroyer, not an enabler. If the yield on the assets you’re borrowing money to finance is less than the cost of borrowings, it simply won’t work, from day one.A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

 

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