Any Australian retailer feeling smug about the rushed retreat of US giant JC Penny from the local market after just two months should think again.

Are we there yet? After the Australian sharemarket hit its lowest point since December 2003, the chorus of investors wondering when the market will bottom-out is growing louder by the day.

Small business representatives have called on the Federal Government to do more to help SMEs deal with the economic downturn at a special COSBOA forum in Melbourne this morning.

Investment giant Babcock & Brown appears close to collapse after one of the group’s key bankers refused to inject emergency capital into the group.

So far the only retailers to do well in the downturn have been so-called “value” retailers such as JB Hi-FI and Super Cheap Auto. But upmarket fashion chain Country Road has revealed that its sales are holding up despite plunging consumer sentiment.

Australia’s last remaining listed childcare company, Early Learning Services, is interested in buying 200 centres from collapsed childcare operators ABC Learning and CFK Childcare Centres.

Internet service provider iiNet has been hit with legal action over allegations it allowed customers to breach copyright by downloading movies via peer-to-peer file sharing sites.

The problem with debt is that it makes you feel richer than you really are.

Are stress levels up in your business? Here are some practical tips on how to manage. TIM SHARP

Link to others to get traffic, but be warned! CHRIS THOMAS

Nearly all small businesses are facing a crisis of confidence. Here is why sending out Christmas cards will help. COLIN BENJAMIN

Tough times means innovation is key to future success. NAOMI SIMSON

Web-based application developer GeekIT moved its focus to match its market, and hasn’t looked back. PATRICK STAFFORD finds that founder Mary Henderson is still finding opportunities to diversify.

Waking up to the fact that things can go wrong is not necessarily an exercise in pessimism. Worse-case scenario planning can actually help you focus your business and concentrate on growth areas. By TOM McKASKILL

Taking on the tax office is tough at the best of times, but when the taxman’s tactics include running multiple cases against an individual and related company, the costs can escalate quickly. ROBERT RICHARDS looks at how one taxpayer managed to cut his legal costs.