Sage business index 2014 global summary v3

Sage – Bite Global The Sage Business Index 2014

Methodology and global summary

Sage Business Index

Global results

Country summaries

Methodology Populus interviewed 13,710 decision-makers in businesses in 18 countries between 9 July and 29 August 2014.

The research follows on from similar studies in 2011, 2012 and 2013, and tracking data is shown where appropriate.

Country All Markets

13,710

USA

1,135

Canada Germany France

*North Africa incorporates results from Morocco and Tunisia

747 1,035

936

UK

2,689

Spain

1,301

South Africa

1,235

Ireland

303

Poland

703

Switzerland

537

Portugal

p2

Number of interviews

1,018

Brazil

890

Malaysia

110

Singapore

104

Austria

177

North Africa*

67

Australia

723

Methodology and global summary

Sage Business Index

Global results

Country summaries

Global executive summary: business confidence continues to recover Business decision-makers around the world are more confident about their own prospects than ever before Confidence in businesses’ own prospects has risen from 62.01 in 2013 to 64.14. Business decision-makers are now more confident about their business than any time since the Business Index began. Confidence is particularly high in North Africa (71.76) and Brazil (70.55), but lower in France (55.45). Only Brazil, South Africa and Singapore have seen dips in confidence.

For the first time, businesses are more optimistic than pessimistic about national economies

Following a sharp improvement in 2013, the global Business Index for national economies has increased again (by 2.78 points) to 51.63, which means businesses, on average, feel national economies are improving. Confidence is highest in Poland (62.32) and the UK (61.76). Not all see improvement, however, and confidence is low in South Africa (34.54) and France (35.07).

The global economy, too, is believed to be in recovery

Business are, for the first time, slightly more likely to believe the global economy is improving than declining (51.68) and the Index has risen three points since 2013. Businesses in Ireland (57.34) and the UK (55.90) are most likely to believe the global economy is improving, whilst Austrian (47.01) and French (47.44) businesses are the most pessimistic. p3

Methodology and global summary

Sage Business Index

Global results

Country summaries

Global executive summary: optimism is echoed in businesses’ predictions for the year ahead Not only are business decision-makers increasingly likely to believe national and global economies are improving, but they also expect their own businesses to grow Three-in-five (58%) anticipate that their business’s turnover will grow in the next year (by an average of 2.5% - rising to 7.3% in Brazil), and 43% say the number of people their company employs will increase in the same time period. Just 21% think turnover will shrink and 9% think their headcount will decrease.

To achieve this growth, businesses are aiming to increase customer loyalty and reduce operating costs, but they feel restrained by bureaucracy

In order to grow their business, 35% say they will increase customer loyalty and the same proportion say they will reduce operating costs (35%), while 32% say they will increase their product/service portfolio. However, as in previous years, the level of government bureaucracy and legislation is believed to be the biggest challenge to growing businesses. 23% identify this as the biggest challenge, 16% name tax rates and tax relief, and 11% name government handling of economic challenges. Nearly a quarter of businesses (23%), therefore, argue that the most important thing their government should do to help businesses is reduce business bureaucracy, and 21% call for a reduction in business tax. p4

Methodology and global summary

Sage Business Index

The Sage Business Index 2014

p6

Global results

Country summaries

Methodology and global summary

Sage Business Index

Global results

Country summaries

The Sage Business Index

Spring 2012

Prospects for your business (All Markets)

57.88

58.86

56.46

62.01

64.14

+2.13

Your country’s economy (All Markets)

47.11

47.26

42.47

48.85

51.63

+2.78

The global economy (All Markets)

44.47

43.95

42.59

48.60

51.68

+3.08

-

-

-

-

50.97

n/a

The European economy (European Markets only)

p7

Summer 2012 Summer 2013 Summer 2014

Change 2013 -> 2014

Summer 2011

Methodology and global summary

Sage Business Index

Global results

Country summaries

The Sage Business Index

All Markets USA Canada Germany France UK Spain South Africa Ireland Poland Switzerland Portugal Brazil Malaysia Singapore Austria North Africa Australia

p8

Prospects for your business (Summer 2014) 64.14 67.53 67.48 63.63 55.45 66.29 61.48 65.69 64.99 60.88 64.46 57.94 70.55 66.62 66.18 61.66 71.76 63.71

Your country’s economy (Summer 2014)

The global economy (Summer 2014)

The European economy (Summer 2014)*

51.63 53.22 56.04 57.32 35.07 61.76 50.00 34.54 58.67 62.32 57.53 44.70 43.57 49.81 59.14 48.52 49.03 54.52

51.68 48.60 51.20 50.53 47.44 55.90 54.34 47.50 57.34 51.70 48.38 48.18 53.72 51.66 54.85 47.01 48.89 54.15

50.97 52.23 44.08 52.23 54.14 56.40 52.13 48.88 47.78 47.74 -

*’The European economy’ only asked of European respondents

Methodology and global summary

Sage Business Index

Global results

Country summaries

The Sage Business Index

Prospects for your business / Your country’s economy / The global economy / The European economy

More confident

80

Prospects for your business (All Markets)

70

Your country's economy (All Markets)

60

Less confident

50

The global economy (All Markets)

40

The European economy (All European Markets)*

30 20 Summer 2011

p9

Spring 2012

Summer 2012

Summer 2013

Summer 2014

*’The European economy’ first included in 2014 and only asked of European respondents

Methodology and global summary

Sage Business Index

Global results

Country summaries

Compared to six months ago do you feel more or less confident about the prospects for your business in the next six months?

[0 = far less confident, 100 = far more confident, 50 = no different]

All Markets USA Canada Germany France UK Spain South Africa Ireland Poland Switzerland Portugal Brazil Malaysia Singapore Austria North Africa Australia

p10

Summer 2011

Spring 2012

Summer 2012

Summer 2013

Summer 2014

57.88 55.31 59.38 59.36 55.01 52.27 50.38 62.58 69.70* 69.70* 61.00 -

58.86 61.07 63.65 59.07 51.00 58.22 45.75 64.44 64.72 61.80 57.71 -

56.46 60.28 61.07 57.81 45.55 58.46 48.12 64.19 54.31 52.09 58.73 41.06 70.31 67.20 59.98 54.58 -

62.01 64.65 66.80 61.82 55.16 62.55 55.80 65.80 62.07 57.60 63.53 52.87 71.62 65.87 66.96 58.09 60.92 -

64.14 67.53 67.48 63.63 55.45 66.29 61.48 65.69 64.99 60.88 64.46 57.94 70.55 66.62 66.18 61.66 71.76 63.71

*Results in Malaysia and Singapore were merged into one in 2011.

Change 2013 -> 2014 +2.13 +2.88 +0.68 +1.81 +0.29 +3.74 +5.68 -0.11 +2.92 +3.28 +0.93 +5.07 -1.07 +0.75 -0.78 +3.57 +10.84 n/a

Methodology and global summary

Sage Business Index

Global results

Country summaries

Prospects for ‘your own business’: in most markets respondents are increasingly confident about the prospects for their business Compared to six months ago do you feel more or less confident about the prospects for your business in the next six months? [Mean score, where 0 means far less confident, 100 means far more confident and 50 means no different] 9 MOST CONFIDENT MARKETS 80

More confident

All Markets North Africa*

70

Brazil* 60 USA

Less confident

50

Canada Malaysia

40 UK 30

Singapore South Africa

20 Summer 2011

p11

Spring 2012

Summer 2012

Summer 2013

Summer 2014

*Brazil and Ireland were included for the first time in 2012. North Africa was included for the first time in 2013.

Ireland*

Methodology and global summary

Sage Business Index

Global results

Country summaries

Prospects for ‘your own business’: in most markets respondents are increasingly confident about the prospects for their business Compared to six months ago do you feel more or less confident about the prospects for your business in the next six months? [Mean score, where 0 means far less confident, 100 means far more confident and 50 means no different] 8 LEAST CONFIDENT MARKETS 80

More confident

All Markets 70

Switzerland*

60

Australia* Germany

50

Less confident

Austria 40

Spain

30

Poland* Portugal*

20 Summer 2011

p12

Spring 2012

Summer 2012

Summer 2013

Summer 2014

*Switzerland, Poland and Portugal were included for the first time in 2012. Australia was included for the first time in 2014.

France

Methodology and global summary

Sage Business Index

Global results

Country summaries

Compared to six months ago do you feel your country's economy is improving or declining?

[0 = declining significantly, 100 = improving significantly, 50 = no different]

All Markets USA Canada Germany France UK Spain South Africa Ireland Poland Switzerland Portugal Brazil Malaysia Singapore Austria North Africa Australia

p13

Summer 2011

Spring 2012

Summer 2012

Summer 2013

Summer 2014

47.11 41.57 56.09 54.08 43.67 42.41 40.43 44.10 53.26* 53.26* 53.21 -

47.26 49.28 54.62 52.08 38.81 44.97 32.96 46.11 51.30 52.52 53.04 -

42.47 47.86 53.82 47.94 33.36 45.44 31.70 43.03 43.41 38.18 51.20 23.55 59.67 50.08 53.88 45.30 -

48.85 52.80 59.43 54.13 35.17 53.95 43.19 39.92 48.22 60.19 57.48 37.36 47.38 52.10 61.63 48.10 45.86 -

51.63 53.22 56.04 57.32 35.07 61.76 50.00 34.54 58.67 62.32 57.53 44.70 43.57 49.81 59.14 48.52 49.03 54.52

*Results in Malaysia and Singapore were merged into one in 2011.

Change 2013 -> 2014 +2.78 +0.42 -3.39 +3.19 -0.10 +7.81 +6.81 -5.38 +10.45 +2.13 +0.05 +7.34 -3.81 -2.29 -2.49 +0.42 +3.17 n/a

Methodology and global summary

Sage Business Index

Global results

Country summaries

Confidence in national economies: growing confidence, apart from in Brazil, South Africa and Canada Compared to six months ago do you feel your country's economy is improving or declining? [Mean score, where 0 means the economy is declining significantly, 100 means it is improving significantly, and 50 it is no different] 9 MOST CONFIDENT MARKETS 80 All Markets Poland*

Improving

70

UK 60 Singapore

Declining

50

Ireland* Switzerland*

40 Germany 30

Canada Australia*

20 Summer 2011

p14

Spring 2012

Summer 2012

Summer 2013

Summer 2014

*Poland, Ireland and Switzerland were included for the first time in 2012. Australia was included for the first time in 2014.

USA

Methodology and global summary

Sage Business Index

Global results

Country summaries

Confidence in national economies: growing confidence, apart from in Brazil, South Africa and Canada Compared to six months ago do you feel your country's economy is improving or declining? [Mean score, where 0 means the economy is declining significantly, 100 means it is improving significantly, and 50 it is no different] 8 LEAST CONFIDENT MARKETS 80

Improving

All Markets 70

Spain

60

Malaysia North Africa*

50

Declining

Austria 40

Portugal*

30

Brazil* France

20 Summer 2011

p15

Spring 2012

Summer 2012

Summer 2013

Summer 2014

*Portugal and Brazil were included for the first time in 2012. North Africa was included for the first time in 2014.

South Africa

Methodology and global summary

Sage Business Index

Global results

Country summaries

Compared to six months ago do you feel the global economy is now improving or declining?

[0 = declining significantly, 100 = improving significantly, 50 = no different]

All Markets USA Canada Germany France UK Spain South Africa Ireland Poland Switzerland Portugal Brazil Malaysia Singapore Austria North Africa Australia

p16

Summer 2011

Spring 2012

Summer 2012

Summer 2013

Summer 2014

44.47 41.53 45.26 46.94 43.13 40.65 46.61 45.92 48.38* 48.38* 43.63 -

43.95 42.74 45.43 46.77 42.75 43.98 39.69 44.71 47.79 45.68 45.00 -

42.59 41.95 44.44 44.04 38.08 43.71 40.27 44.54 46.52 40.34 41.95 35.36 50.65 47.79 45.12 41.48 -

48.60 47.80 52.55 47.93 44.11 51.10 49.19 46.77 51.02 47.05 50.53 42.39 52.06 51.56 55.15 46.65 47.75 -

51.68 48.60 51.20 50.53 47.44 55.90 54.34 47.50 57.34 51.70 48.38 48.18 53.72 51.66 54.85 47.01 48.89 54.15

*Results in Malaysia and Singapore were merged into one in 2011.

Change 2013 -> 2014 +3.08 +0.80 -1.35 +2.60 +3.33 +4.80 +5.15 +0.73 +6.32 +4.65 -2.15 +5.79 +1.66 +0.10 -0.30 +0.36 +1.14 n/a

Methodology and global summary

Sage Business Index

Global results

Country summaries

The global economy: businesses are now more likely to be optimistic than pessimistic Compared to six months ago do you feel the global economy is now improving or declining? [Mean score, where 0 = the global economy is declining significantly, 100 = it is improving significantly, and 50 = it is no different] 9 MOST CONFIDENT MARKETS 80 All Markets Ireland*

Improving

70

UK 60 Singapore

Declining

50

Spain Australia*

40 Brazil* 30

Poland* Malaysia

20 Summer 2011

p17

Spring 2012

Summer 2012

Summer 2013

Summer 2014

*Ireland, Brazil and Poland were included for the first time in 2012. Australia was included for the first time in 2014.

Canada

Methodology and global summary

Sage Business Index

Global results

Country summaries

The global economy: businesses are now more likely to be optimistic than pessimistic Compared to six months ago do you feel the global economy is now improving or declining? [Mean score, where 0 = the global economy is declining significantly, 100 = it is improving significantly, and 50 = it is no different] 8 LEAST CONFIDENT MARKETS 80

Improving

All Markets 70

Germany

60

North Africa* USA

50

Declining

Switzerland* 40

Portugal*

30

South Africa France

20 Summer 2011

p18

Spring 2012

Summer 2012

Summer 2013

Summer 2014

*Switzerland and Portugal were included for the first time in 2012. North Africa was included for the first time in 2013.

Austria

Methodology and global summary

Sage Business Index

Global results

Country summaries

Compared to six months ago do you feel the European economy is improving or declining?

[0 = declining significantly, 100 = improving significantly, 50 = no different] Summer 2014 All European Markets

50.97

Germany

52.23

France

44.08

UK

52.23

Spain

54.14

Ireland

56.40

Poland

52.13

Switzerland

48.88

Portugal

47.78

Austria

47.74

p19

Methodology and global summary

Sage Business Index

Global results

Global results

p20

Global results

Country summaries

Methodology and global summary

Sage Business Index

Global results

Country summaries

Attitudes towards risk: nearly half describe themselves at risk seeking, rather than risk averse On a scale of 0-10 where would you place yourself in terms of your attitude to risk?

Risk Seeking (6- 10)

Neutral (5)

All Markets

49%

North Africa Brazil Poland USA Canada Australia Spain South Africa Switzerland Ireland Singapore France Malaysia UK Germany Austria Portugal

p21

Risk averse (0-4) 20%

31%

63% 61% 59%

53%

25% 25% 28%

22%

26%

21%

27%

50%

18%

32%

49%

18%

32%

48%

18%

48%

34% 26%

47%

26%

23%

46%

31%

30%

44%

Base: All

20%

20%

52%

40%

18% 21%

53%

41%

21%

16%

54%

43%

16%

24%

20% 15% 16%

24%

37% 42% 43%

36%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Attitudes towards risk: Brazilian, Polish and North African business decision-makers are the most open to taking risks On a scale of 0-10 where would you place yourself in terms of your attitude to risk? [Mean scores, 0 = never take risks and 10 = always take risks] 2013 6.0

5.25.3

5.2

p22

5.8 5.1

5.8 5.7 5.6 5.4 5.6 5.2

2014

5.9 5.5

5.5 5.4

5.5

4.8

Base: All *Australia was included for the first time in 2014.

5.3 4.8

5.3 5.2 5.2 5.0

5.8

5.5 5.2

5.1 5.1

4.9

4.9 4.8 4.8 4.4

4.7

Methodology and global summary

Sage Business Index

Global results

Country summaries

Attitudes towards risk: more than a third – rising to half in France – have become more risk averse in the last seven years How do you think your attitude to risk has changed in the last seven years?

13%

20%

13% 21%

16%

22%

20%

25%

21%

33%

43%

38%

41% 39%

45%

44%

44%

35%

p23

Base: All

40%

40%

36%

47%

35%

26%

46%

17%

20%

16%

14%

56%

59%

21%

40%

45%

49%

24%

33%

39% 39%

23%

35%

33%

32%

30%

47%

29%

54%

29%

52%

28%

28%

I have become less risk averse

61%

I have remained the same

18%

I have become more risk averse

27%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Business growth: nearly three-in-five say that their business’s turnover will grow in the next year By how much do you anticipate your business's turnover to grow or shrink over the next twelve months?

Turnover will grow Turnover will shrink Mean growth in turnover (%) 72% 58% 7.3

66%

65%

63%

63%

60%

63%

58%

58%

55%

55%

54%

53%

51%

45%

6.4

42%

38%

4.9 3.2

2.5

3.6

3.5

3.1

1.5

-21%

p24

-16% -25%

-22%

Base: All

-17%

-22%

-23%

2.5

2.3 0.6

-16%

-18%

-0.3 -17%

-18% -29%

0.6

-20%

-23%

1.5

1.8 -0.6

-23%

-26%

-30%

-1.6

-37%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Business growth: many plan to grow their businesses by focusing on customer loyalty, operating costs and product/service portfolios How do you plan to grow your business in the next twelve months? [All Markets] Increasing customer loyalty

35%

Reducing my operating costs

35%

Increase product/ services portfolio

32%

Using new marketing tactics and channels

25%

Expanding into new markets or geographies

23%

Pricing changes

20%

Investing in infrastructure and technology

18%

Attracting new talent

14%

Increase sales team

13%

Increase marketing team Acquisition

6%

Open new domestic premises

6%

Open new international premises Other

p25

9%

Base: All

3% 12%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Business growth: more than two-fifths expect the number of people employed by their company to increase Do you anticipate the number of people employed by your company increasing or decreasing over the next twelve months?

Increasing 66%

66%

Decreasing

Mean growth in headcount

65% 51%

43%

50%

49%

48%

47%

46%

44%

42%

40%

38%

37%

5.3 2.1

2.0

-8%

-9%

p26

3.0

2.8

-16%

-9%

Base: All

-12%

2.2

-12%

2.4

-9%

2.7

-8%

1.9

2.5 1.2

-6%

-7%

-18%

1.6

-11%

2.7

-13%

1.5 -8%

1.6 -9%

32%

0.8 -9%

29%

0.6

28%

0.4

-7% -16%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Business growth: government bureaucracy and legislation is most commonly seen as the biggest challenges to growing businesses Thinking about your country as a place to do business in, what is the biggest challenge to growing your business? [All Markets] Too much Government bureaucracy and legislation

23%

Tax rates/ tax relief for business

16%

Government handling of current economic challenges

11%

Lack of skilled workforce to recruit from

10%

Access to capital and funding

9%

Government's attitude to business

8%

Business culture and entrepreneurial spirit My country's currency/ exchange rate

3%

Access to international markets

3%

Lack of business infrastructure (e.g. broadband and telecoms connections) Other

p27

6%

Base: All

2% 10%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Most markets feel that the biggest challenge to doing business in their country is the amount of bureaucracy and legislation Thinking about your country as a place to do business in, what is the biggest challenge to growing your business? [Top two challenges in each market] USA

Canada

Germany

France

UK

36% 26%

21%

Too much government bureaucracy

15%

16%

Govt. handling of econ. challenges

Too much government bureaucracy

Spain

14%

13%

Tax rates/tax relief for business

Too much government bureaucracy

South Africa

22%

17%

Tax rates/tax relief for business

Tax rates/tax relief for business

15%

Too much government bureacracy

Too much government bureaucracy

Tax rates/ tax relief for business

Poland

Ireland

37% 20%

Too much government bureaucracy

p28

16%

Tax rates/ tax relief for business

Base: All

21%

20%

18%

18%

Too much government bureaucracy

Govt. handling of econ. challenges

Too much government bureaucracy

Access to capital and funding

15%

Too much government bureaucracy

Govt. attitudes to business

Methodology and global summary

Sage Business Index

Global results

Country summaries

Most markets feel that the biggest challenge to doing business in their country is the amount of bureaucracy and legislation Thinking about your country as a place to do business in, what is the biggest challenge to growing your business? [Top two challenges in each market] Switzerland

Portugal

Brazil 29%

28%

24%

Malaysia 27%

22% 14%

Too much government bureaucracy

Lack of skilled workforce to recruit from

Singapore

Too much government bureaucracy

Tax rates/ tax relief for business

Austria

Tax rates/ tax relief for business

Too much government bureaucracy

North Africa

15%

15%

Too much government bureaucracy

Govt. handling of econ. challenges

Australia

35% 24%

19%

13%

Lack of skilled workforce to recruit from

p29

Too much government bureaucracy

Tax rates/ tax relief for business

Base: All

Too much government bureaucracy

16%

15%

16%

Too much government bureaucracy

Govt. handling of econ. challenges

Too much government bureaucracy

13%

Govt. handling of econ. challenges

Methodology and global summary

Sage Business Index

Global results

Country summaries

Helping businesses: reduce business bureaucracy and business taxes

What do you think are the three most important things your Government should be doing to help businesses in your country? [All Markets] 23%

Reduce business bureaucracy and legislation

21%

Reduce business tax

Reduce national debt

7%

Put pressure on banks to lend more

7%

Invest more in infrastructure projects - such as transport networks

4%

Reduce interest rates

4%

19%

15% 17% 18%

3%

Create specialist support networks and communities

2%

Other

2%

Base: All

23%

27%

5%

Bring stability to your currency value or exchange rates

p30

32%

6%

Control energy/ utility costs

Don’t know

47%

10%

Skills development and education

Invest more in tech infrastructure such as broadband and wifi

53%

13% 9% 6%

5% 5%

Most important Top three

Methodology and global summary

Sage Business Index

Global results

Country summaries

Helping businesses: reduce business bureaucracy and business taxes What do you think are the three most important things your Government should be doing to help businesses in your country? [% most important – top three in each market] USA

Canada

Reduce bureaucracy

21%

Reduce bureaucracy

Reduce business tax

Skills development

18%

Reduce bureaucracy

19%

Reduce business tax

8%

Skills development

Spain Put pressure on banks to lend Reduce bureaucracy Reduce business tax

p31

Germany 32%

Reduce business tax

14%

Reduce business tax

12%

Skills development

South Africa 26%

Reduce bureaucracy

19%

Bring stability to currency

13%

Skills development

Base: All

France

UK 30%

Reduce bureaucracy

22%

14%

Reduce bureaucracy

24%

Reduce business tax

20%

12%

Reduce national debt

10%

Skills development

12%

Ireland 21%

Put pressure on banks to lend

21%

Reduce bureaucracy

18%

Reduce business tax

Poland 19%

Reduce bureaucracy

36%

17%

Reduce business tax

34%

14%

Bring stability to currency

4%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Helping businesses: reduce business bureaucracy and business taxes What do you think are the three most important things your Government should be doing to help businesses in your country? [% most important – top three in each market] Switzerland

Reduce bureaucracy

Portugal 34%

Reduce business tax

Skills development

Put pressure on banks to lend

47%

Reduce business tax

9%

Reduce bureaucracy

8%

Skills development

Singapore Reduce bureaucracy Skills development Reduce business tax

p32

Brazil 43%

Reduce business tax

28%

20%

Reduce bureaucracy

18%

Reduce bureaucracy

16%

7%

Reduce interest rates

10%

Bring stability to currency

12%

Austria 20%

Reduce bureaucracy

18%

Reduce business tax

15%

Skills development

Base: All

Malaysia

North Africa 31%

Reduce bureaucracy

16%

Reduce business tax

10%

Skills development

Australia 33%

Reduce bureaucracy

18%

16%

Reduce business tax

16%

10%

Skills development

11%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Exporting business: three-fifths do not do business in countries outside their own In how many countries outside of your own, do you currently do business (sell products or services in)?

Mean:

1.5

1.2

1.0

1.1

1.3

1.2

21%

17%

13%

15%

16%

15%

16%

23%

21%

21%

1.7

1.4

1.6

1.5

1.4

1.5

21%

17%

19%

21%

25%

1.8

1.7

3.8

3.8

3.8

3 or more 24%

21%

23%

22%

25%

20% 50%

23%

20%

1.5

16%

20%

19%

25%

22%

22%

55%

52%

29%

1-2

20% 67%

59%

64%

64%

63%

62%

21% 60%

59%

59%

58%

57%

57%

56%

53%

50% 30%

p33

Base: All

30%

0 24%

18%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Exporting business: approximately 20% of exporting businesses’ turnover comes from outside their domestic market Approximately what percentage of your business's turnover comes from outside of your domestic market?

Mean:

20%

17%

19%

20%

20%

23%

21%

23%

26%

24%

9% 14% 19%

10%

7%

22%

32%

19%

21%

17%

17%

18%

15%

22%

18%

18%

16%

18%

29%

35% 15%

17%

24%

32%

18%

16%

15%

20%

25%

23% 35%

13%

24%

26%

12% 28%

29%

27%

21%

23%

More than 30%

19%

21-30%

29%

11-20%

29%

0-10%

48% 18%

16%

7%

22%

16%

13% 8%

18%

24%

16% 10%

28%

17%

20%

23%

19%

25%

9% 11%

51% 41%

p34

49%

48%

46%

46%

45%

Base: All those who export

44%

41%

39%

38%

38%

37%

36%

35%

32%

32%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Export growth: the majority of exporters anticipate that turnover generated by exports will increase in the next year By how much do you anticipate turnover generated by exports will increase or decrease over the next twelve months?

Export turnover will increase

Export turnover will decrease

Mean growth in export turnover

78% 68%

67%

66%

63%

54%

60%

59%

57%

54%

52%

50%

50%

47%

6.8 3.2

3.9

2.9

-12%

p35

-7%

-10%

-13%

4.3

-17%

5.2

4.9 3.5

-12%

Base: All those who export

-11%

3.2

-14%

4.5 2.3

-11%

-13%

3.4 2.1

-13%

-9%

-13%

2.2

-12%

44%

1.3

-17%

42%

2.6

-11%

41%

1.9

-18%

40%

0.7 -14%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Exports destination: the most common export destination is the USA, followed by Germany To which country did your business export most in the last twelve months? [All markets – top ten responses]

12%

11%

6%

USA

p36

Germany

UK

6%

France

Base: All those who export

4%

4%

4%

Spain

Ireland

China

3%

3%

3%

Canada

Switzerland

Austria

Methodology and global summary

Sage Business Index

Global results

Country summaries

Exports destination: the most common export destination is the USA, followed by Germany To which country did your business export most in the last twelve months? [Top two countries in each market] Canada Germany France UK

USA

67% 28%

22% 10%

15%

18%

Switzerland

Germany

4% Canada

Mexico

USA

Spain

China

Austria

South Africa

17%

17%

Ireland

USA

9%

Ireland

UK

Poland

61% 33% 19%

Germany

p37

16%

France

16%

Namibia

Base: All those who export

10%

Botswana

9%

11%

UK

USA

Germany

UK

Methodology and global summary

Sage Business Index

Global results

Country summaries

Exports destination: the most common export destination is the USA, followed by Germany To which country did your business export most in the last twelve months? [Top two countries in each market] Switzerland

Portugal

Brazil

Malaysia

47% 27%

32% 25%

21%

19%

12%

Germany

France

Singapore

12%

Spain

Angola

Austria

Argentina

USA

North Africa

Singapore

Indonesia

Australia

54% 35%

27% 15% 6% Malaysia

p38

China

Germany

Base: All those who export

USA

16%

16%

USA

China

7% France

Spain

Methodology and global summary

Sage Business Index

Global results

Country summaries

Future exports destination: three-in-five do not plan to grow exports in any country in the next year In which countries do you plan to grow your exports in the next twelve months? [All markets – top ten responses] 62%

7%

p39

5%

4%

Base: All

4%

3%

2%

2%

2%

2%

2%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Future exports destination: businesses plan to grow their exports in a wide variety of countries, most frequently the USA and Germany In which countries do you plan to grow your exports in the next twelve months? [Top two countries in each market] USA

Canada

Germany

France

UK

17% 11%

9%

6%

Canada

5%

UK

USA

Spain

China

Austria

South Africa

6%

7%

Switzerland

Germany

Ireland

8%

7%

USA

Germany

5%

UK

Poland

26% 19% 10%

10%

10%

9%

12% 5%

Germany

p40

UK

Botswana

Base: All

Mozambique

UK

USA

Germany

UK

Methodology and global summary

Sage Business Index

Global results

Country summaries

Future exports destination: businesses plan to grow their exports in a wide variety of countries, most frequently the USA and Germany In which countries do you plan to grow your exports in the next twelve months? [Top two countries in each market] Switzerland

Portugal

13%

Brazil

Germany

Singapore

Angola

Spain

Austria

11%

9%

7%

France

15%

13%

11% 4%

Malaysia

USA

Argentina

North Africa

Singapore

Indonesia

Australia

27% 19%

16%

16% 9% 5%

Indonesia

p41

Malaysia

Germany

Base: All

USA

4%

France

Spain

China

7%

USA

Methodology and global summary

Sage Business Index

Global results

Country summaries

Export growth: a fifth of all businesses and two-fifths of exporters say their company’s level of exports has increased in the last year In the last year, has your company's level of exports (in terms of turnover generated)...?

ALL

6%

76%

EXPORTERS

18%

10%

13%

8%

8%

12%

8%

6%

8%

3%

58%

54%

66%

66%

65%

71%

75%

73%

78%

33%

26%

25%

23%

20%

19%

19%

19%

18%

18%

17%

17%

16%

16%

14%

14%

13%

10%

15%

13%

10%

14%

5%

8%

11%

9%

13%

16%

10%

9%

14%

40%

53%

39%

41%

51%

47%

56%

52%

48%

46%

46%

51%

61%

49%

46%

46%

39%

40%

39%

39%

41%

45%

30%

37%

33%

11%

11%

16%

49%

51%

44%

40%

38%

40%

p42

4%

78%

6%

4%

76%

78%

7%

10%

5%

5%

7%

76%

75%

79%

81%

79%

Decreased

Stayed the same Increased

47%

Base: All

36%

41%

52%

32%

39%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Export growth: logistical costs and the level of competition in international markets are seen as the main barriers to growing exports What do you think are the two biggest barriers to growing your exports? [All Markets] 30% 33%

Logistical costs 25%

Level of competition in international markets

24% 24%

Legislation Exchange rates

16%

Lack of financial stability in your domestic market

13% 12% 13% 16% 12% 10% 9% 9% 9% 9%

Lack of financial stability in foreign markets Language Cultural differences

Your country's reputation Multi-currency trading Lack of technology infrastructure in target market Lack of appropriate business software Other

p43

Base: All

31%

22%

All

5% 7% 5% 6% 5% 5%

Exporters

15%

33%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Export growth: three-in-ten think their government should provide financial incentives to help businesses grow exports What one thing do you think your Government should be doing more to help businesses grow exports?

14%

8%

8%

16%

16%

16%

13%

13%

15%

4% 14%

15%

14%

21%

20%

11%

20%

15%

15% 11%

19%

10%

21%

24%

35%

26%

16%

23%

12%

11%

21%

15%

24%

24%

23%

1% 4%

16%

19%

16%

22%

15%

21%

17%

20%

41%

40%

38%

Base: All

36%

34%

32%

31%

30%

28%

27%

7%

27%

63%

10%

40%

Champion businesses and raise awareness abroad

17% 12%

25%

24%

Other

Provide advice and guidance

21%

23% 33% 12%

29%

11% 30%

24%

15%

24%

14%

p44

12%

6%

9% 13% 21%

47%

11%

8%

24%

20%

26%

Changes to legislation Financial incentives

20%

19%

18%

15%

Methodology and global summary

Sage Business Index

Global results

Country summaries

Export growth: very few agree that they receive the support they need from government to grow their exports How much do you agree or disagree with the following statement? “I receive the support I need from government to enable me to grow my exports� [% agreeing] All Markets

12%

Malaysia Singapore North Africa Australia Canada France USA Poland Brazil Germany Switzerland Austria Spain Ireland UK South Africa Portugal

p45

40% 35% 31% 19% 18% 18% 16% 15% 14% 13% 13% 13% 10% 10% 8% 7% 6%

Base: All

Methodology and global summary

Sage Business Index

Global results

Country summaries

USA summary (1)

Country summaries 

USA



Switzerland



Canada



Portugal



Germany



Brazil



France



Malaysia



UK



Singapore



Spain



Austria



South Africa



North Africa (Morocco and Tunisia)



Ireland



Australia



Poland

p55

Methodology and global summary

Sage Business Index

Global results

Country summaries

USA summary (1) American businesses are increasingly confident, but doubts about the global economy remain Businesses in the USA are confident about their own prospects (67.53, up 2.88 points since 2013) and also believe the American economy to be improving (53.22). However, they remain pessimistic about the global economy, despite a small improvement since 2013 (48.60, up from 47.80).

Confidence is replicated in Americans’ predictions for the next year…

The majority (58%) of American business decision-makers anticipate their company’s revenue will grow in the next year, and they estimate it will grow by, on average, 3.1%. Just 18% say it will shrink. Confidence about recruitment is similarly high: 44% say their headcount will increase; just 7% say it will decrease. …but complaints about bureaucracy and government handling of challenges are common A fifth (21%) of Americans say the biggest challenge to growing their business is the amount of government bureaucracy, while 15% name the government’s handling of economic challenges as the biggest challenge. Therefore, a fifth (21%) say that the most important thing government should do to help is reduce business bureaucracy and legislation, and 19% say reducing business tax is the most important. p56

Methodology and global summary

Sage Business Index

Global results

Country summaries

USA summary (2) American businesses are less likely than others around the world to do business overseas, despite the possible advantages Two-thirds (67%) of American business decision-makers say their company does no business in a country other than their home market. This proportion falls to 59% globally, 53% in Germany and 30% in Austria. Those exporters estimate that exports account for 17% of their revenue, with Canada the main market (28%). Encouragingly, 45% of American exporters say exports increased in the last year, and 52% expect growth in export revenue in the next year.

To grow exports, many demand government reform or assistance Only one-in-six Americans (16%) agree that they receive the support they need from government to enable me to grow their exports. Therefore, a quarter argue that the most important thing for the government to do to help businesses grow such exports is legislation changes (25%), though a similar proportion (24%) call for financial assistance.

Mobile business provides ability to work on the move but also possible problems

The main advantage of mobile devices is working on the move according to 61% of Americans, and 29% spend more than a quarter of their working day on such devices. However, only 77% are happy their company has adequate cyber security in place and 14% are concerned mobile business has had a negative impact on their work-life balance. p57

Methodology and global summary

Sage Business Index

Global results

Country summaries

Canada summary (1) Canadians remain optimistic about their own prospects, but less so about the national economy In Canada, businesses’ confidence in their own prospects remains fairly high (67.48, up by 0.68). Canadians still think the national economy is improving (56.04, though this has fallen 3.39 points since 2013) but are less optimistic about the global economy (51.20, down 1.35 since 2013).

Revenue and headcounts are expected to increase...

More than half of Canadian business decision-makers (54%) expect revenue to grow in the next year. More than a third (37%) also anticipate that the number of people employed by their company will increase in the next year, compared with just 9% who say the opposite. ‌but bureaucracy and tax rates are regular complaints One-in-six (16%) Canadians believe that the biggest challenge to growing their business is the level of government bureaucracy and legislation, while 13% believe that the main challenge to growth is tax rates for businesses. Perhaps as a consequence, 18% suggest that the most important thing their government should be doing to help is reducing business bureaucracy and legislation, and 14% say that reducing business tax is most important. p58

Methodology and global summary

Sage Business Index

Global results

Country summaries

Canada summary (2) Canadian businesses are relatively unlikely to do business overseas‌ Two-thirds (62%) of Canadian business decision-makers say that their company does no business in a country other than their own, and only 15% say they do business in three or more countries. Those who do export say their main markets are the USA (67%) and China (4%). However, only 39% of Canadian exporters say export revenue increased in the last year, and half (52%) say that export revenue stayed the same. ...but suggest that financial incentives would encourage them Only 18% of Canadians feel that they receive the support they need from government to help them grow their exports. A third (31%) believe that financial incentives from government would be the main incentive to helping their businesses grow exports, followed by 20% who believe that government championing of businesses abroad would help most.

Infrastructure and cyber security issues colour perceptions of mobile working More than half of Canadian business decision-makers (54%) say that the main advantage of mobile devices is working on the move. However, only 63% say that the Canadian mobile infrastructure makes it possible to work effectively on mobile devices and just 75% feel that their company has adequate data protection, privacy and cyber security measures in place. p59

Methodology and global summary

Sage Business Index

Global results

Country summaries

Germany summary (1) German businesses are confident about their prospects and equally optimistic about the German, European and global economies Businesses in Germany are confident about their own prospects (63.63, up 1.81 since 2013).

They also think that the German economy (57.32, up by 3.19 since 2013), the global economy (50.53 up by 2.60 since 2013) and the European economy (52.23) are all improving .

German predictions for the coming year are similarly upbeat More than half of German businesses (58%) predict that their turnover will grow in the next year, while only 18% anticipate that it will shrink. Confidence about recruitment is relatively high too: 38% claim that the number of people employed by their business will increase; and only 8% say it will decrease.

However, many are concerned that the amount of bureaucracy, legislation and tax is holding up growth More than a third (36%) of German businesses claim that the biggest challenge to growing their business is the level of government bureaucracy and legislation, and 14% say that tax rates are the biggest challenge. As a consequence, a third (32%) say the most important thing government should do to help is to reduce business bureaucracy, and 14% say that reducing tax is the most important. p60

Methodology and global summary

Sage Business Index

Global results

Country summaries

Germany summary (2) German businesses that to do business in foreign markets frequently expect growth Over half (53%) of German business decision-makers say that their company does no business outside of their own country, and just a quarter (25%) do business in three or more foreign markets although Germany is the second most common export destination for foreign exporters (after the USA). However, 39% of German exporters say that their company’s level of export turnover has increased in the last year and 47% expect growth in the coming year.

To increase exports, Germans believe that government reform and assistance would help A quarter (24%) of German business decision-makers state that the most important thing for the government to do to help businesses grow exports is financial incentives, 21% call for changes to legislation and 20% seek advice and guidance. This is reflected in the fact that only 13% of German businesses agree they receive the support that they need from government to grow exports while 32% disagree.

Some concerns exist about the mobile infrastructure and about mobile business in Germany

Only 62% of German business decision-makers believe that the German mobile infrastructure makes it possible to work effectively on mobile devices. Moreover, just 73% are confident that their company has adequate cyber security measures in place, and 19% claim that mobile business has had a negative impact on their work-life balance. p61

Methodology and global summary

Sage Business Index

Global results

Country summaries

France summary (1) At a time of increasing global confidence, French businesses remain relatively pessimistic French business decision-makers are confident about their own businesses’ prospects (55.45) but less so than any other market around the world. They also believe the French national economy is declining (35.07). Indeed only South African businesses are as gloomy about their national economy (34.54). French businesses are also negative about the global economy (47.44) and the European economy (44.08).

Pessimism extends into predictions for the next year More than a third of French business decision-makers (37%, compared with 21% globally) expect turnover to shrink in the next year – more than any other market – and 38% estimate it will grow. 16% also expect their company’s headcount to decrease. Less than one-in-three (28%) expect their headcount to increase, compared with 43% across the world.

Tax rates are seen as the biggest hurdle to growth A quarter (26%) say that the biggest challenge to growing their business is French tax rates, followed by 17% saying government bureaucracy and legislation. It follows, therefore, that 30% of French businesses feel the most important thing their government should be doing to help is reduce those business taxes. 24% say reducing bureaucracy is most important, and one-in-ten emphasise the need to reduce national debt (10%). p62

Methodology and global summary

Sage Business Index

Global results

Country summaries

France summary (2) French exporters are confident that export turnover will increase 44% of business decision-makers in France say that their company does business in a country other than their own, including 22% who do business in more than two countries. The main market for those exporters is Germany (18%), and exporters are generally confident about growth. 32% of French exporters say export turnover has increased in the last year (compared with 16% who say it fell), and 44% of exporters anticipate turnover will grow in the next year (compared with 17% who think it will decrease).

Many call for more help from the French Government to grow exports A fifth (18%) of French business decision-makers agree they receive the support they need from government to help them grow their exports. Two-fifths (40%) say that the one thing government should do to help grow these exports is to champion French businesses and raise awareness abroad (compared with 21% who say this globally).

Data security issues and France’s mobile infrastructure concern many The main advantage of mobile devices is the ability to work on the move, according to 47%.

However, only 58% (compared with 74% globally) are confident their company has adequate cyber security measures in place and just 60% believe the mobile infrastructure in France makes it possible to work effectively on mobile devices. p63

Methodology and global summary

Sage Business Index

Global results

Country summaries

UK summary (1) UK business confidence has surged Business decision-makers in the UK are now more confident about the prospects for their own business (66.29) and the direction of the UK economy (61.76, up 7.81 points) than ever before.

Indeed, only Polish businesses are more confident in their national economy (62.32). UK businesses also feel the global and European economies are improving (55.90 and 52.23 respectively), unlike their counterparts in France (47.88 and 44.08). ...and UK businesses expect to see growth over the next year Nearly two-thirds (63%, compared with 58% globally and 38% in France) expect their business’s turnover to grow in the next year, on average by 3.5% (compared with 2.5% globally). Further, 47% anticipate that the number of people their company employs will also increase, compared with just 6% who say it will decrease.

Removing bureaucracy and reducing business tax is believed to help further growth A fifth of UK business decision-makers (22%) say the biggest challenge to growing their business is the amount of government bureaucracy, while 15% name tax rates. It follows, therefore, that 22% say reducing bureaucracy is the most important thing government should be doing to help businesses, and 20% call for a reduction in business tax. p64

Methodology and global summary

Sage Business Index

Global results

Country summaries

UK summary (2) Exporting businesses in the UK have seen, and predict further, export growth The majority (60%) of UK business decision-makers say their company only does business in its domestic market. Those businesses that do export, however, estimate that 20% of their turnover comes from overseas and 39% say that turnover generated by exports has increased in the last year. Furthermore, 50% of exporters estimate that export turnover will grow in the next year and just 9% think it will shrink.

Very few feel they receive enough help with exports from the UK Government A third of UK businesses say logistical costs are the biggest barrier to growing exports, but only 8% agree they receive the support they need from government to help them with this (while 30% disagree). To help businesses grow exports, 28% think the government should offer financial incentives and 22% say it should champion businesses and raise awareness abroad.

Mobile working is less common in the UK than other markets around the world Although 59% say the main advantage of mobile devices is the ability to work on the move, UK business decision-makers spend less time on mobile devices than those in other markets (an estimated 19% of their working day, compared with 24% globally, 41% in Malaysia and 33% in Singapore). This may be due to the fact that only 53% believe the UK’s mobile infrastructure makes it possible to work effectively on such devices. p65

Methodology and global summary

Sage Business Index

Global results

Country summaries

Spain summary (1) Spanish businesses are increasingly confident about their own prospects‌ Spanish businesses are increasingly confident about their own prospects (61.48, up 5.68 since 2013). This level of confidence is reflected in their perception of the Spanish economy – which they believe is no longer declining (50.00 up by 6.18 since 2013) – as well as in the global economy (54.34, up by 5.15 since 2013) and in the European economy (54.14). ...and their confidence is echoed in their predictions for future business turnover Six-in-ten Spanish businesses (60%) forecast that their turnover will grow in the next year, while only 23% predict that it will shrink. This is supported by 42% who anticipate that the number of people employed by their company will increase in the next year, compared to 11% who say that it will decrease.

But, Spanish business decision-makers highlight bureaucracy, legislation and tax rates as the biggest challenges to doing business One-fifth of businesses (20%) see too much bureaucracy and legislation as the biggest challenge to growing businesses in Spain, 16% view tax rates as the biggest challenge, and 15% name access to capital. The most popular suggestions, therefore, for the Spanish Government to help businesses are: more pressure on banks to lend money (26%); a reduction in government bureaucracy (19%); and a reduction in business tax (13%). p66

Methodology and global summary

Sage Business Index

Global results

Country summaries

Spain summary (2) Spanish businesses are unlikely to do business outside their home market, though turnover generated by exports has increased‌ Over half (58%) of Spanish businesses say that their company does no business outside of their own country, 21% say that they do business in one or two foreign markets countries, and another 21% say that they do business in 3 or more foreign markets. Those exporters are generally optimistic about turnover generated by exports in the coming year: 67% anticipate that turnover will increase, whereas only 13% predict that export turnover will decrease.

Few feel they receive the support they need from government to help grow exports Only 10% of Spanish businesses feel that they receive the support they need from government to help grow exports. For government to help businesses grow exports, 30% say that financial incentives would help, followed by 24% who claim that the government should champion businesses and raise awareness abroad, and 24% who state that the government should provide more advice and guidance.

Doubts over mobile infrastructure and cyber security are revealed

Two-thirds of Spanish businesses (64%) say that the main advantage of using mobile devices is that they can continue working whilst on the move. However, only 55% feel that the mobile infrastructure in Spain makes it possible to work effectively on mobile devices, and just 77% are confident their company has adequate cyber security measures in place. p67

Methodology and global summary

Sage Business Index

Global results

Country summaries

South Africa summary (1) South African businesses are confident about their own prospects, but are very pessimistic about the South African economy On the one hand, South African business decision-makers are confident about the prospects for their businesses (65.69). On the other hand, they are very pessimistic about their country’s economy and feel that it is in decline, (34.54, down by 5.38 since 2013). They are also relatively pessimistic about the global economy (47.50).

But, many anticipate business growth…

Almost two-thirds (65%) of South African businesses predict that their business turnover will grow in the next year, compared to 22% who believe it will shrink. They are also optimistic about employment: 51% believe that the number of people employed by their company will increase in the next year.

Pessimism about the South African economy and the government’s handling of it represents a challenge to doing business in South Africa Around one-fifth (21%) claim that too much government bureaucracy is the major challenge to businesses, whereas 20% say that the problem lies in the government’s handling of economic challenges. As a result, 21% of South Africans state that bringing stability to their currency would help businesses, another 21% say reducing bureaucracy would be helpful, and 18% believe that the government needs to focus on skills development. p68

Methodology and global summary

Sage Business Index

Global results

Country summaries

South Africa summary (2) South African businesses expect that turnover generated by exports will increase in the next year Of the 41% of South African companies that export business, 59% are optimistic that export turnover will increase in the next year and only 14% anticipate that it will decrease. However, three-fifths (59%) do no business outside of their home market, compared with just 30% in Austria and 24% in Singapore.

Very few feel that they receive the support they need from government Pessimistically, only 7% of South African businesses feel that they receive the support they need from government to help them grow exports. Therefore, to help businesses grow such exports (and 10% of businesses want to increase exports to Botswana, for example) 36% argue that the government should be providing financial incentives.

South African businesses express concern over the mobile infrastructure in their country‌ Only 59% believe that the mobile infrastructure in South Africa makes it possible to work effectively on mobile devices. Furthermore, there is some concern over cyber security measures: 70% feel that their company has adequate data protection measures in place but 14% don’t know and 16% feel it does not. p69

Methodology and global summary

Sage Business Index

Global results

Country summaries

Ireland summary (1) The Irish economy is believed to be improving for the first time since the Index began Irish business decision-makers are increasingly confident in their own prospects (64.99) but, perhaps more encouragingly, their confidence in the national economy has seen a large increase. For the first time, Irish businesses think the Irish economy is improving (58.67, up 10.45 points since 2013) and also think the global and European economies are improving (57.34 and 56.40 respectively).

Irish businesses now expect to see real growth in turnover and employment The majority (63%) of business decision-makers in Ireland anticipate that their business’s turnover will grow in the next year, and are more confident than businesses in France and Portugal (where only 38% and 42%, respectively, expect turnover to grow). Additionally, 48% expect the number of people employed by their company to increase, while just 8% expect the number to fall.

Too little capital and an abundance of bureaucracy are seen as serious challenges Nearly a fifth of Irish businesses (18%) feel government bureaucracy is the biggest challenge to growing their business and the same proportion (18%) name access to capital and funding.

Therefore, 19% claim the government should be focusing on pressuring banks to lend more, and 17% want government to reduce bureaucracy in order to help businesses. p70

Methodology and global summary

Sage Business Index

Global results

Country summaries

Ireland summary (2) Exporting Irish businesses are confident, but half do no such business overseas..

Half of Irish businesses (50%) do no business outside of Ireland, with just 20% doing business in three or more overseas markets. Of the 50% who do export business, 52% estimate that exports account for more than 10% of their business’s turnover and 39% say the level of exports has increased in the last year. Additionally, 57% of exporters anticipate that export turnover will increase in the next year. ...and so assistance from government to grow exports is called for Only one-in-ten (10%) of Irish business decision-makers think they receive the support they need from government to help them grow their exports (compared with a high of 40% in Malaysia and 35% in Singapore). For 41%, offering financial incentives is felt to be the main thing the Irish Government should do to help businesses grow exports.

Concerns about security, work-life balance and mobile infrastructure limit mobile business Working on the move is seen as the main advantage of mobile devices by 65% of Irish business decision-makers, but many identify various concerns with mobile business. For example, just 71% feel their company has adequate cyber security measures in place; only 54% believe the Irish mobile infrastructure makes it possible to work effectively on mobile devices; and 25% say mobile business has had a negative impact on their work-life balance. p71

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Poland summary (1) Polish business decision-makers are increasingly confident...

Polish businesses express confidence in their businesses’ prospects (60.88, up by 3.28 since 2013) and are more confident in their national economy than any other country (62.32, up by 2.13 since 2013). They also feel that – though less strongly – the European economy (52.13) and the global economy (51.70, up by 4.65 since 2013) are improving. ...and their confidence manifests itself in forecasts of future turnover and employment Two-thirds (63%) of Polish businesses predict that their business turnover will grow in the next year, compared to 22% who believe it will shrink. They are also very optimistic with regards to employment: 50% anticipate that the number of people employed by their company will increase in the next year; and only 12% anticipate a decline.

But challenges lie in government bureaucracy and attitudes towards businesses Over a third of Polish businesses (37%) say that too much government bureaucracy is the biggest challenge to growing their business, and 15% believe the main challenge is government attitudes towards businesses (more than in any other market). Therefore, reducing bureaucracy (36%), and reducing business taxes (34%) are seen as the most important things the government should be doing to help businesses. p72

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Poland summary (2) Although a minority of companies do business in foreign markets, exports have provided a source of growth for Polish businesses‌ Nearly three-in-five (57%) Polish businesses do no business in a foreign market. However, of the 43% that do export, 47% say that the level of turnover generated by exports has increased in the last year (more than in any other market). Furthermore, 63% of exporters anticipate exports will increase in the next year. ...and so businesses call for government support to grow exports Only 15% of Polish businesses feel that they receive the support they need from government to help them grow exports. Legislation changes (33%), the championing of businesses abroad (27%) and financial incentives (20%) are seen as the most important things the government should be doing to help businesses grow exports.

Working ‘on-the-move’ and on mobile devices is more common in Poland than in much of the rest of the world

Over half of Polish business decision-makers (54%) say that the biggest advantage of mobile devices is being able to continue to work whilst on the move, and they spend, on average, 32% of their working day on such mobile devices (compared with 24% globally). However, a third (33%) say that mobile business has had a negative effect on their work-life balance, and just p73 77% are confident that their company has adequate cyber security.

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Switzerland summary (1) Swiss confidence is tempered by concerns about the global and European economies Although Swiss business decision-makers are confident about their own prospects (64.46) and about the Swiss economy (57.53), these indexes are largely unchanged since 2013 (increasing by 0.93 and 0.05 points respectively). This may be due to pessimism about the global economy (48.38, down 2.15 points since 2013) and about the European economy (48.88).

These international concerns seem to limit Swiss predictions for growth Swiss businesses, while being more likely to anticipate growth in turnover over the next year than decline, are less likely than others to say turnover will grow (51%, compared with 58% globally). They are also less likely than many other markets to say the number of people their company employs will grow in the next year (32%, compared with 43% globally).

Beyond international economic concerns, government bureaucracy and a lack of skilled workers are seen as further challenges to growth A quarter of Swiss business decision-makers (24%) say that government bureaucracy is the biggest challenge to doing business in Switzerland and 14% identify a lack of a skilled workforce to recruit from. In order for the Swiss Government to help businesses, therefore, a third (34%) call for a reduction in bureaucracy and 9% want it to focus on skills development. p74

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Switzerland summary (2) A minority of Swiss companies export business, but those that do have seen export growth More than half of Swiss business decision-makers (57%) say that their business only sells products or services within Switzerland. However, the 43% of exporting businesses estimate that, on average, 19% of turnover comes from exports, 30% say the level of exports increased in the last year, and 42% anticipate that export turnover will increase in the next year.

Concerns surround the impact of mobile business on the work-life balance...

Swiss business decision-makers are more likely than all other markets to say that mobile business has had a negative impact on their work/life balance (34%, compared with 19% globally). Fewer (25%) say is has had a positive impact. This concern with mobile business seems to be reflected in the small proportion who believe that customers should be able to contact their business 24/7 (just 26%, compared with 47% globally). ...but most are happy with cyber security measures and the mobile infrastructure Swiss businesses are happier with the mobile infrastructure in their country than those in other countries: 70% agree it makes it possible to work effectively on mobile devices, compared with 59% globally and 53% in the UK. Similarly, Swiss businesses are more likely than most to feel their company has adequate cyber security measures in place (78%, second only to the UK’s 83%). p75

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Portugal summary (1) Portuguese businesses decision-makers are pessimistic about national and global economies Portuguese businesses express confidence about the prospects for their businesses (57.94, up by 5.07 since 2013). However, they are still pessimistic about the state of the Portuguese economy (44.70 vs. 51.63 globally). They are also still relatively pessimistic about the global and European economies in comparison to other countries (48.18 and 47.78 respectively).

They are also less confident about growth than many other markets Only 42% of Portuguese businesses predict that their business turnover will grow in the next year. A relatively high proportion (30%) expect it to shrink. In comparison, 58% of global companies anticipate turnover growth. Additionally, only 29% say that the number of people employed by their company will increase, compared with 43% globally. These conservative estimates are perhaps linked to the fact that 44% claim to have become more risk averse in the last seven years.

The main challenges to growth are viewed as bureaucracy, legislation and tax rates

Over a quarter (28%) say that too much government bureaucracy and legislation is the biggest challenge to growing their business. 22% believe the biggest challenge is tax rates. As a consequence, a reduction in business tax (47% vs. 21% globally), and in bureaucracy and legislation (20%) is demanded from government. p76

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Portugal summary (2) Relatively few Portuguese businesses currently do business abroad Only 36% of Portuguese businesses currently do business in countries outside of their own (compared with 41% globally), and that includes just 13% who do business in three or more foreign markets (vs. 21% globally). Of those exporters, however, a third (32%) claim that more than 30% of their businesses turnover comes from exports, and 50% of exporters expect their company’s level of exports to increase in the next year.

Financial incentives from government could help‌ A tiny proportion of Portuguese business decision-makers (6%) feel that they receive the support that they need from government to help them grow their exports. Compared with other countries, a high percentage of business decision-makers (40%, vs. 29% globally) claim that financial incentives would be the most effective government support to help businesses grow exports.

Portuguese businesses believe that cyber security is a potential problem

Portuguese businesses argue that the main business advantage of using mobile devices is the ability to stay in touch with customers and suppliers more easily (58%). However, only 64% say that they feel their company has adequate data protection, privacy and cyber security measures, compared to 74% globally and 83% in the UK. p77

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Brazil summary (1) Brazilian businesses are concerned about the national economy, but more bullish about their own prospects Brazilian businesses very are confident about their prospects for their businesses (70.55), and express confidence in the global economy too (53.72, up by 1.66 since 2013). However, Brazilian business decision-makers are pessimistic about the Brazilian economy and the position seems to have worsened in the last year (43.57, down by 3.81 since 2013).

Most are upbeat about the next year Nearly three-quarters of Brazilian businesses (72% - the highest of all markets) anticipate that their business turnover will grow in the next year, and just 16% think it will shrink. They are also optimistic about employment rates: 65% say that the number of people employed by their company will increase in the next year, while 9% believe it will decrease. Moreover, relative to other countries, they are more likely to take risks, with 61% claiming to be risk-seeking.

Government bureaucracy and tax rates are commonly identified as major challenges Nearly a quarter of Brazilian business decision-makers (29%) say that tax rates pose the biggest challenge to business growth, and 27% claim that too much government bureaucracy and legislation is the biggest challenge. Therefore, reducing business tax (43% vs. 21% globally), and reducing bureaucracy and legislation (18%) are seen as the most important things the government should be doing to help Brazilian businesses. p78

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Malaysia summary (1) Malaysians are personally optimistic, but concerned about the national economy Malaysian business decision-makers are increasingly confident about their own business’s prospects (66.62, up 0.75 from 2013). They are also optimistic about the global economy, (51.66) but, unlike 2013, now feel that Malaysia’s economy is declining slightly (49.81, down by 2.29 since 2013).

Malaysian business decision-makers anticipate business growth More than half (55%) of Malaysian businesses predict that their business turnover will grow in the next year, compared to 29% that say it will shrink. They are also the joint most confident market with regards to expected employment rates: 66% of Malaysian businesses anticipate that the number of people employed by their company will increase in the next year, compared with 43% globally. Just 8% feel that it will decrease.

A variety of challenges are highlighted as the biggest issues for businesses Malaysian business decision-makers identify the level of government bureaucracy and legislation (15%) and the government’s handling of economic challenges (15%) as the two biggest challenges to growing their business in Malaysia . To help businesses, 28% say the government should prioritise reducing business taxes. p80

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Malaysia summary (2) The Malaysian businesses that do business abroad expect the level of those exports to grow Two-thirds of Malaysian businesses (63%) do not do any business outside of their own country, while 21% do business in one or two other countries, and just 16% export to three or more countries. However, those Malaysian exporters are very confident about future prospects: not only do 46% (vs. 40% globally) say that export turnover grew in the last year, but 68% expect it to grow in the next year.

Financial incentives from government will help businesses grow their export Compared to all the other markets, Malaysian business decision-makers are the most likely market to think that financial incentives are the one thing that the government should be providing to help business grow exports (47%).

Malaysian businesses lack confidence in their company’s cyber-security measures‌ A relatively low 51% say that they feel their company provides adequate data protection, privacy and cyber-security measures, compared to 74% globally. Despite this, more Malaysian business decision-makers believe that mobile business has had a positive effect on their worklife balance than in any other country (78%, compared with 47% globally). Malaysians are also positive about mobile working in other ways: 72% agree the mobile infrastructure makes it possible to work effectively on mobile devices; and 71% think that their customers should be able to contact their business 24/7 (more than in any other country). p81

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Singapore summary (1) Business confidence in Singapore is faltering...

Business decision-makers in Singapore remain confident. They are optimistic about their own prospects (66.18) but this has not changed significantly since 2013. In fact, optimism about the national and global economies (59.14 and 54.85) have actually fallen slightly since 2013 (from 61.63 and 54.85 respectively). ...and businesses in Singapore are relatively cautious about growth over the next year Relative to the other countries, relatively few businesses in Singapore expect growth in business turnover in the next year. Under half (45%) anticipate business turnover will grow in the next year, compared with 58% globally. There is more confidence about employment: 49% predict that employment rates will increase over the next year and just 9% expect a fall.

A lack of a skilled workforce to recruit from is seen as the biggest challenge to businesses Over a third (35%) of business decision-makers in Singapore state that a lack of a skilled workforce to recruit from is the biggest challenge they face, twice as many as any other country. 13% say that the biggest challenge comes from the amount of government bureaucracy and legislation. Therefore, reducing bureaucracy (20%) and skills development and education (18%) are cited at the two most important things the Singaporean government should be doing to help businesses. p82

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Singapore summary (2) Businesses in Singapore are more likely to export than those in most other countries Over half (55%) of Singaporean businesses – the highest proportion across all markets – currently do business in three or more countries outside of their home market and just 24% do no business outside Singapore. Consequently, nearly half (48%) of businesses in Singapore generate more than 30% of their business turnover from exports. 41% of exporters expect export turnover to increase in the next year.

Many claim that export growth could be encouraged by financial incentives More than a quarter of business decision-makers in Singapore (27%) plan to grow exports to Indonesia in the next year and 16% say Malaysia is their target market for growth. Over a third (38%) think that financial incentives are the one thing that the government should be doing to help business grow exports.

Satisfaction with government assistance and with the mobile infrastructure is high Singaporean business decision-makers are much more likely to agree that they receive the support they need from government to grow exports than the rest of the world (35% vs. 12% globally). They are also the most confident in their country’s mobile infrastructure: 82% believe that the mobile infrastructure in their country makes it possible to work effectively on mobile devices. p83

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Austria summary (1) Macro-economic concerns but confidence in Austrians’ own business prospects Austrian business decision-makers are fairly pessimistic about the European economy, which, on balance, they feel is declining (47.74). They are similarly concerned about the state of the global economy (47.01), and the Austrian national economy (48.52). However, they are confident about their own prospects for growth (61.66, up by 3.57 since 2013).

Austrians predict an increase in business turnover in the next year More than half (55%) of Austrian business decision-makers anticipate that business turnover will grow in the next year, compared to 17% that believe turnover will shrink. Additionally, almost half (46%) predict that the number of people their company employs will increase over the next year as opposed to 18% who think that it will decrease.

Tax rates and bureaucracy and legislation are the biggest challenges to business growth A quarter (24%) of Austrian business decision-makers believe tax rates are the biggest challenge to business growth. One-in-five (19%) claim that too much government bureaucracy is the main challenge. Therefore, reducing bureaucracy (31%), reducing business tax (16%) and skills development and education (10%) are viewed as the three most important things the Austrian Government should be doing to help businesses. p84

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Austria summary (2) Although many Austrian businesses export, not all are confident in export growth Half of Austrian businesses (50%) currently do business in three or more countries outside of their own market, and just 30% do not do business in any other country. The 70% of Austrian businesses that do export estimate that, on average, 25% of their turnover comes from exports. However, just 40% export the level of turnover generated by exports to grow in the next year (compared with 54% globally).

Austrian businesses’ believe that financial incentives will help grow exports Just one-in-six Austrian decision-makers (13%) agree they receive the support they need from government to enable them to help them grow their exports. A quarter (27%) think that financial incentives are the main thing that the government should be doing to help businesses grow exports.

Many are concerned about the impact of mobile business on their work-life balance Just 19% – the lowest proportion across all markets – believe that mobile business has had a positive impact on their work-life balance, and 33% say it has had a negative impact (compared with 19% globally). This may be linked with the fact that just 30% agree that customers should be able to contact their company 24/7, compared with 47% globally. Only the Swiss are less likely to agree with this (26%). p85

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North Africa (Morocco and Tunisia) summary (1) Although concerned about national economies, North African businesses are extremely optimistic about their own prospects Business decision-makers in Morocco and Tunisia are the most confident amongst all the markets about their own prospects (71.76, up 10.84 points since 2013). They are, however, pessimistic about their national economies (49.03), and the global economy (48.89).

They also predict an increase in business turnover in the next year Two-thirds (66%) of North African business decision-makers – higher than all markets other than Brazil – anticipate that business turnover will grow in the next year, compared to 25% that believe turnover will shrink. They are equally confident about employment: 66% predict that the number of people employed by their company will increase in the next year.

Government is often seen to provide barriers to businesses A fifth (16%) of North African business decision-makers believe that the amount of government bureaucracy and legislation is the biggest challenge to business growth in their country, and 15% identify the government’s handling of economic challenges as the main challenge.

Therefore, reducing bureaucracy (33%) and reducing business tax (16%) are the seen to be the most important things the government should be doing to help businesses. p86

*low base size (67) in North Africa

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North Africa (Morocco and Tunisia) summary (2) Exports are an important element of North African business...

Half of North African businesses (52%) currently do business in three or more countries outside of their own market, 30% do business in one or two foreign countries and only 18% do no business in a country outside their own. 40% of those exporters say that turnover generated by exports has grown in the last year. ...and many expect exports to continue to grow Three quarters (78%) expect that their company’s turnover generated by exports will increase in the next year, whilst only 7% feel it will decrease. To further grow exports, 63% – the highest amongst all the countries – feel that the government should champion businesses and raise awareness abroad.

Concerns about cyber-security are common Despite 75% of North African businesses claiming that the main business advantage of using mobile devices is the ability to work when on the move and 54% saying that they most commonly communicate with customers by email, they are the least likely to believe their company has adequate cyber-security measures in place (43% vs. 74% globally).

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*low base size (67) in North Africa

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Australia summary (1) Australian businesses are more optimistic about their prospects than those of the national or global economy Australian business decision-makers are confident about the future prospects of their own businesses (63.71). They are less confident about the Australian economy (54.52) and the global economy (54.15), but still believe both are improving rather than declining.

They also predict an increase in business turnover in the next year More than half (53%) of Australian business decision-makers anticipate growth in business turnover in the next year, while 23% predict turnover will decrease. Moreover, 40% predict that the number of people employed by their company will increase, while just 13% believe that it will decrease in the next year.

Government bureaucracy and competence are frequently seen as challenges to business A fifth (16%) believe that the level of government bureaucracy and legislation is the biggest challenge for growing businesses in Australia. One-in-six (13%) identify the government’s handling of economic challenges as the biggest challenge, and the same proportion name tax rates. As a consequence, they believe that reducing bureaucracy (18%), reducing business tax (16%) and skills development and education (11%) are the three most important things the Australian government should be doing to help businesses. p88

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Australia summary (2) Doing business in external markets is relatively rare, but an opportunity for growth Only 23% of Australian businesses’ currently do business in three or more countries outside of their own market. 19% do business in one or two countries outside their own, and 59% say they only do business in Australia. However, 41% of exporters say that the turnover generated by exports grew in the last year and nearly two-thirds (60%) expect that turnover generated by exports will increase in the next year. Only 11% anticipate that turnover will decrease in the next year.

To further grow exports, a third (34%) of Australian businesses feel that the government should provide financial incentives, whereas 20% feel that raising awareness abroad and championing businesses would be the most useful government action, and 19% call for changes to legislation.

Infrastructure and cyber-security issues confront mobile business Half of Australian business decision-makers (56%) feel that the main business advantage of using mobile devices is being about to work while on the move. However, just 63% believe that the mobile infrastructure in their country makes it possible to work effectively on mobile devices, and only 75% are confident that their company has adequate data protection, privacy and cyber-security measures in place. p89

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Owen Thomas Consultant T +44 [0]20 7553 4144 E othomas@populus.co.uk