sage business index 2014 global summary v3

Sage – Bite Global The Sage Business Index 2014

p2

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 Number of interviews

All Markets 13,710

USA 1,135

Canada 747

Germany 1,035

France 936

UK 2,689

Spain 1,301

South Africa 1,235

Ireland 303

Poland 703

Switzerland 537

Portugal 1,018

Brazil 890

Malaysia 110

Singapore 104

Austria 177

North Africa* 67

Australia 723

*North Africa incorporates results from Morocco and Tunisia

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

Global executive summary: business confidence continues to recover


Sage Business Index Country summaries Global results

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

Global executive summary: optimism is echoed in businesses’ predictions for the year ahead



The Sage Business Index 2014

p6



The Sage Business Index

Summer 2011 Spring 2012 Summer 2012 Summer 2013 Summer 2014 Change

2013 -> 2014

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

The European economy (European Markets only)

- - - - 50.97 n/a

p7




Prospects for your

business (Summer 2014)

Your country’s economy (Summer 2014)

The global economy (Summer 2014)

The European economy (Summer 2014)*

All Markets 64.14 51.63 51.68 50.97

USA 67.53 53.22 48.60 -

Canada 67.48 56.04 51.20 -

Germany 63.63 57.32 50.53 52.23

France 55.45 35.07 47.44 44.08

UK 66.29 61.76 55.90 52.23

Spain 61.48 50.00 54.34 54.14

South Africa 65.69 34.54 47.50 -

Ireland 64.99 58.67 57.34 56.40

Poland 60.88 62.32 51.70 52.13

Switzerland 64.46 57.53 48.38 48.88

Portugal 57.94 44.70 48.18 47.78

Brazil 70.55 43.57 53.72 -

Malaysia 66.62 49.81 51.66 -

Singapore 66.18 59.14 54.85 -

Austria 61.66 48.52 47.01 47.74

North Africa 71.76 49.03 48.89 -

Australia 63.71 54.52 54.15 -

p8



*’The European economy’ only asked of European respondents


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20

30

40

50

60

70

80

Summer 2011 Spring 2012 Summer 2012 Summer 2013 Summer 2014

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

Prospects for your business (All Markets)

Your country's economy (All Markets)

The global economy (All Markets)

The European economy (All European Markets)*



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

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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]


2013 -> 2014

All Markets 57.88 58.86 56.46 62.01 64.14 +2.13

USA 55.31 61.07 60.28 64.65 67.53 +2.88

Canada 59.38 63.65 61.07 66.80 67.48 +0.68

Germany 59.36 59.07 57.81 61.82 63.63 +1.81

France 55.01 51.00 45.55 55.16 55.45 +0.29

UK 52.27 58.22 58.46 62.55 66.29 +3.74

Spain 50.38 45.75 48.12 55.80 61.48 +5.68

South Africa 62.58 64.44 64.19 65.80 65.69 -0.11

Ireland - - 54.31 62.07 64.99 +2.92

Poland - - 52.09 57.60 60.88 +3.28

Switzerland - - 58.73 63.53 64.46 +0.93

Portugal - - 41.06 52.87 57.94 +5.07

Brazil - - 70.31 71.62 70.55 -1.07

Malaysia 69.70* 64.72 67.20 65.87 66.62 +0.75

Singapore 69.70* 61.80 59.98 66.96 66.18 -0.78

Austria 61.00 57.71 54.58 58.09 61.66 +3.57

North Africa - - - 60.92 71.76 +10.84

Australia - - - - 63.71 n/a

p10 *Results in Malaysia and Singapore were merged into one in 2011.



Prospects for ‘your own business’: in most markets respondents are increasingly confident about the prospects for their business

p11

20

30

40

50

60

70

80


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

All Markets

North Africa*

Brazil*

USA

Canada

Malaysia

UK

Singapore

South Africa

Ireland*


Sage Business Index Country summaries

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Global results

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

Prospects for ‘your own business’: in most markets respondents are increasingly confident about the prospects for their business

p12

20

30

40

50

60

70

80


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

All Markets

Switzerland*

Australia*

Germany

Austria

Spain

Poland*

Portugal*

France



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Global results

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

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]


2013 -> 2014

All Markets 47.11 47.26 42.47 48.85 51.63 +2.78

USA 41.57 49.28 47.86 52.80 53.22 +0.42

Canada 56.09 54.62 53.82 59.43 56.04 -3.39

Germany 54.08 52.08 47.94 54.13 57.32 +3.19

France 43.67 38.81 33.36 35.17 35.07 -0.10

UK 42.41 44.97 45.44 53.95 61.76 +7.81

Spain 40.43 32.96 31.70 43.19 50.00 +6.81

South Africa 44.10 46.11 43.03 39.92 34.54 -5.38

Ireland - - 43.41 48.22 58.67 +10.45

Poland - - 38.18 60.19 62.32 +2.13

Switzerland - - 51.20 57.48 57.53 +0.05

Portugal - - 23.55 37.36 44.70 +7.34

Brazil - - 59.67 47.38 43.57 -3.81

Malaysia 53.26* 51.30 50.08 52.10 49.81 -2.29

Singapore 53.26* 52.52 53.88 61.63 59.14 -2.49

Austria 53.21 53.04 45.30 48.10 48.52 +0.42

North Africa - - - 45.86 49.03 +3.17





Confidence in national economies: growing confidence, apart from in Brazil, South Africa and Canada

p14

20

30

40

50

60

70

80


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

All Markets

Poland*

UK

Singapore

Ireland*

Switzerland*

Germany

Canada

Australia*

USA



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

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Confidence in national economies: growing confidence, apart from in Brazil, South Africa and Canada

p15

20

30

40

50

60

70

80


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

All Markets

Spain

Malaysia

North Africa*

Austria

Portugal*

Brazil*

France

South Africa



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

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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]


Change 2013 -> 2014

All Markets 44.47 43.95 42.59 48.60 51.68 +3.08

USA 41.53 42.74 41.95 47.80 48.60 +0.80

Canada 45.26 45.43 44.44 52.55 51.20 -1.35

Germany 46.94 46.77 44.04 47.93 50.53 +2.60

France 43.13 42.75 38.08 44.11 47.44 +3.33

UK 40.65 43.98 43.71 51.10 55.90 +4.80

Spain 46.61 39.69 40.27 49.19 54.34 +5.15

South Africa 45.92 44.71 44.54 46.77 47.50 +0.73

Ireland - - 46.52 51.02 57.34 +6.32

Poland - - 40.34 47.05 51.70 +4.65

Switzerland - - 41.95 50.53 48.38 -2.15

Portugal - - 35.36 42.39 48.18 +5.79

Brazil - - 50.65 52.06 53.72 +1.66

Malaysia 48.38* 47.79 47.79 51.56 51.66 +0.10

Singapore 48.38* 45.68 45.12 55.15 54.85 -0.30

Austria 43.63 45.00 41.48 46.65 47.01 +0.36

North Africa - - - 47.75 48.89 +1.14





The global economy: businesses are now more likely to be optimistic than pessimistic

p17

20

30

40

50

60

70

80


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

All Markets

Ireland*

UK

Singapore

Spain

Australia*

Brazil*

Poland*

Malaysia

Canada

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



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Global results

The global economy: businesses are now more likely to be optimistic than pessimistic

p18

20

30

40

50

60

70

80


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

All Markets

Germany

North Africa*

USA

Switzerland*

Portugal*

South Africa

France

Austria

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



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Global results

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



p20



Global results

Global results

Attitudes towards risk: nearly half describe themselves at risk seeking, rather than risk averse

49%

63%

61%

59%

54%

53%

53%

52%

50%

49%

48%

48%

47%

46%

44%

43%

41%

40%

20%

16%

18%

16%

21%

20%

22%

21%

18%

18%

18%

26%

23%

30%

20%

15%

16%

24%

31%

21%

20%

25%

25%

28%

26%

27%

32%

32%

34%

26%

31%

24%

37%

42%

43%

36%

All Markets

North Africa

Brazil

Poland

USA

Canada

Australia

Spain

South Africa

Switzerland

Ireland

Singapore

France

Malaysia

UK

Germany

Austria

Portugal

On a scale of 0-10 where would you place yourself in terms of your attitude to risk?

Risk Seeking (6- 10) Neutral (5) Risk averse (0-4)

p21



Base: All

Global results

Attitudes towards risk: Brazilian, Polish and North African business decision-makers are the most open to taking risks

5.2 5.2 5.1

5.4 5.7

5.2 4.8

5.4 4.8 5.0

5.2

5.9

5.1

5.5

4.4

4.8

5.8

5.3

6.0 5.8 5.8

5.6 5.6 5.5 5.5 5.5 5.3 5.3

5.2 5.2 5.1

4.9 4.9 4.8 4.7

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 2014

p22



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

Global results

Attitudes towards risk: more than a third – rising to half in France – have become more risk averse in the last seven years

35%

49% 46% 44% 44% 40% 40%

36% 35% 33% 32% 30% 29% 29% 28% 28% 27% 18%

45%

39%

33% 43% 40%

38% 41%

26%

39% 45%

35% 47% 47%

54% 52%

56% 59%

61%

20% 13%

21% 13% 16%

22% 20%

39%

25% 21%

33%

23% 24% 17% 20%

16% 14% 21%

How do you think your attitude to risk has changed in the last seven years?

I have become less risk averse

I have remained the same

I have become more risk averse

p23



Base: All

Global results

Business growth: nearly three-in-five say that their business’s turnover will grow in the next year

58%

72% 66% 65% 63% 63% 60% 63%

58% 58% 55% 55% 54% 53% 51% 45% 42% 38%

-21% -16%

-25% -22% -17%

-22% -23% -16% -18% -18%

-29%

-17% -20% -23% -23% -26% -30% -37%

2.5

7.3 6.4

4.9

3.2 3.6

1.5

3.5 3.1 2.3

0.6 -0.3

2.5

0.6 1.5 1.8

-0.6 -1.6

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 (%)

p24



Base: All

Global results

Business growth: many plan to grow their businesses by focusing on customer loyalty, operating costs and product/service portfolios

35%

35%

32%

25%

23%

20%

18%

14%

13%

9%

6%

6%

3%

12%

Increasing customer loyalty

Reducing my operating costs

Increase product/ services portfolio

Using new marketing tactics and channels

Expanding into new markets or geographies

Pricing changes

Investing in infrastructure and technology

Attracting new talent

Increase sales team

Increase marketing team

Acquisition

Open new domestic premises

Open new international premises

Other

How do you plan to grow your business in the next twelve months? [All Markets]

p25



Base: All

Global results

Business growth: more than two-fifths expect the number of people employed by their company to increase

43%

66% 66% 65%

51% 50% 49% 48% 47% 46% 44% 42% 40% 38% 37% 32% 29% 28%

-9% -8% -16%

-9% -12% -12% -9% -8% -6%

-18%

-7% -11% -13% -8% -9% -9% -7%

-16%

2.0 2.1 3.0

5.3

2.8 2.2 2.4 2.7 1.9

1.2 2.5

1.6 2.7

1.5 1.6 0.8 0.6 0.4

Do you anticipate the number of people employed by your company increasing or decreasing over the next twelve months?

Increasing Decreasing Mean growth in headcount

p26



Base: All

Global results

Business growth: government bureaucracy and legislation is most commonly seen as the biggest challenges to growing businesses

23%

16%

11%

10%

9%

8%

6%

3%

3%

2%

10%

Too much Government bureaucracy and legislation

Tax rates/ tax relief for business

Government handling of current economic challenges

Lack of skilled workforce to recruit from

Access to capital and funding

Government's attitude to business

Business culture and entrepreneurial spirit

My country's currency/ exchange rate

Access to international markets

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

Other

Thinking about your country as a place to do business in, what is the biggest challenge to growing your business? [All Markets]

p27



Base: All

Global results

26%

17%

Tax rates/tax relief for business

Too much government bureacracy

France 36%

14%

Too much government bureaucracy


Germany

16% 13%



Canada

20% 16%



Spain

Most markets feel that the biggest challenge to doing business in their country is the amount of bureaucracy and legislation

p28

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]

21% 15%


Govt. handling of econ.

challenges

USA



21% 20%



challenges

South Africa

18% 18%


Access to capital and funding

Ireland 37%

15%


Govt. attitudes to business

Poland

Base: All

Global results

22%

15%



UK

15% 15%



challenges

Malaysia

29% 27%



Brazil

28% 22%



Portugal

35%

13%



Singapore

Most markets feel that the biggest challenge to doing business in their country is the amount of bureaucracy and legislation

p29

24%

14%



Switzerland



24% 19%



Austria

16% 15%



challenges

North Africa

16% 13%



challenges

Australia

Base: All

Global results

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]

Helping businesses: reduce business bureaucracy and business taxes

23%

21%

10%

7%

7%

6%

5%

4%

4%

3%

2%

2%

5%

53%

47%

32%

23%

19%

27%

15%

17%

18%

13%

9%

6%

5%

Reduce business bureaucracy and legislation

Reduce business tax

Skills development and education

Reduce national debt

Put pressure on banks to lend more

Control energy/ utility costs

Bring stability to your currency value or exchange rates

Invest more in infrastructure projects - such as transport networks

Reduce interest rates

Invest more in tech infrastructure such as broadband and wifi

Create specialist support networks and communities

Other

Don’t know

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

Most important

Top three

p30



Base: All

Global results


p31

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

Reduce bureaucracy 21%

Reduce business tax 19%

Skills development 8%

Canada




Germany




France



Reduce national debt 10%

South Africa


Bring stability to currency 21%


Poland




Ireland

Put pressure on banks to lend 19%



Spain




UK




Base: All


p32

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




Portugal




Brazil



Reduce interest rates 10%

Austria




Australia




North Africa




Singapore




Malaysia




Base: All

Exporting business: three-fifths do not do business in countries outside their own

59% 67% 64% 64% 63% 62% 60% 59% 59% 58% 57% 57% 56% 53% 50%

30% 24%

18%

20%

16% 23% 21% 21% 23%

16% 20% 19% 21% 25% 25% 22% 22% 29%

20%

21% 30%

21% 17% 13% 15% 16% 15% 24% 21% 23% 21% 17% 19% 22% 25%

20%

50% 55% 52%

1.5 1.2 1.0 1.1 1.3 1.2 1.7 1.4 1.6 1.5 1.4 1.5 1.5 1.8 1.7 3.8 3.8 3.8

In how many countries outside of your own, do you currently do business (sell products or services in)?

3 or more

1 - 2

0

p33



Base: All

Mean:

Global results

Exporting business: approximately 20% of exporting businesses’ turnover comes from outside their domestic market

41% 51% 49% 48% 46% 46% 45% 44% 41% 39% 38% 38% 37% 36% 35% 32% 32% 29%

21%

19% 18% 19%

16% 15% 13% 24% 26%

17% 28% 28%

20% 23% 19% 25%

11%

29%

14% 9%

10% 7% 13% 8%

7%

15% 17%

16%

18% 16%

12%

18%

10%

16%

9%

19%

23% 21% 23% 26% 24% 32% 35%

18% 15%

29%

16% 18%

32% 23%

35% 27%

48%

23%

20% 17% 19% 20% 20% 22% 24% 17% 17% 22% 18% 18% 24% 20% 25% 22% 29% 21%

Approximately what percentage of your business's turnover comes from outside of your domestic market?

More than 30%

21-30%

11-20%

0-10%

p34



Base: All those who export

Mean:

Global results

Export growth: the majority of exporters anticipate that turnover generated by exports will increase in the next year

54%

78% 68% 67% 66% 63% 60% 59% 57% 54% 52% 50% 50% 47% 44% 42% 41% 40%

-12% -7% -10% -13% -17%

-12% -11% -14% -11% -13% -13% -9% -13% -12% -17%

-11% -18% -14%

3.2

6.8

2.9 3.9 4.3

5.2

3.5 3.2

4.9

2.3

4.5 3.4

2.1 2.2 1.3

2.6 1.9

0.7

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

p35




Global results

Exports destination: the most common export destination is the USA, followed by Germany

12% 11%

6% 6%

4% 4% 4% 3% 3% 3%

USA Germany UK France Spain Ireland China Canada Switzerland Austria

To which country did your business export most in the last twelve months? [All markets – top ten responses]

p36




Global results

18%

9%

Germany UK

France

22% 15%

Austria Switzerland

Germany 67%

4%

USA China

Canada

19% 16%

Germany France

Spain


p37

To which country did your business export most in the last twelve months? [Top two countries in each market]

28%

10%

Canada Mexico

USA



16% 10%

Namibia Botswana

South Africa

61%

11%

UK USA

Ireland

33%

9%

Germany UK

Poland

Global results

17% 17%

Ireland USA

UK


32%

12%

Singapore Indonesia

Malaysia

21% 19%

Argentina USA

Brazil

27% 25%

Spain Angola

Portugal

27%

15%

Malaysia China

Singapore


p38

To which country did your business export most in the last twelve months? [Top two countries in each market]

47%

12%

Germany France

Switzerland



54%

6%

Germany USA

Austria

35%

7%

France Spain

North Africa

16% 16%

USA China

Australia

Global results


Future exports destination: three-in-five do not plan to grow exports in any country in the next year

7% 5% 4% 4% 3% 2% 2% 2% 2% 2%

62%

In which countries do you plan to grow your exports in the next twelve months? [All markets – top ten responses]

p39



Base: All

Global results

7% 5%

Germany UK

France

9% 6%

Austria Switzerland

Germany

17%

5%

USA China

Canada

19%

10%

Germany UK

Spain

Future exports destination: businesses plan to grow their exports in a wide variety of countries, most frequently the USA and Germany

p40

In which countries do you plan to grow your exports in the next twelve months? [Top two countries in each market]

11%

6%

Canada UK

USA



10% 9%

Botswana Mozambique

South Africa 26%

10%

UK USA

Ireland

12%

5%

Germany UK

Poland

Base: All

Global results

8% 7%

USA Germany

UK

15% 11%

Singapore Indonesia

Malaysia

13% 9%

USA Argentina

Brazil

11% 7%

Angola Spain

Portugal

27%

16%

Indonesia Malaysia

Singapore

Future exports destination: businesses plan to grow their exports in a wide variety of countries, most frequently the USA and Germany

p41

In which countries do you plan to grow your exports in the next twelve months? [Top two countries in each market]

13%

4%

Germany France

Switzerland



19%

5%

Germany USA

Austria

16%

4%

France Spain

North Africa

9% 7%

China USA

Australia

Base: All

Global results

40% 38% 40% 47% 36%

46% 46% 39% 40% 39% 39% 41% 45% 41% 32% 39%

30% 37%

49% 51% 44% 40% 53% 39% 41% 51% 47% 56% 52% 48% 46% 46%

52% 51% 61% 49%

11% 11% 16% 13% 10% 15% 13% 10% 14% 5% 8% 11% 9% 13% 16% 10% 9% 14%

18% 33% 33% 26% 25% 23% 20% 19% 19% 19% 18% 18% 17% 17% 16% 16% 14% 14%

76% 58% 54% 66% 66% 65% 71% 75% 73% 78% 78% 76% 78% 76% 75% 79% 81% 79%

6% 10% 13% 8% 8% 12% 8% 6% 8% 3% 4% 6% 4% 7% 10% 5% 5% 7%

In the last year, has your company's level of exports (in terms of turnover generated)...?

Decreased

Stayed the same

Increased

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

p42



Base: All

ALL

EX

PO

RTE

RS

Global results

Export growth: logistical costs and the level of competition in international markets are seen as the main barriers to growing exports

30%

25%

24%

16%

13%

13%

12%

9%

9%

5%

5%

5%

33%

33%

31%

24%

22%

12%

16%

10%

9%

9%

7%

6%

5%

15%

Logistical costs

Level of competition in international markets

Legislation

Exchange rates

Lack of financial stability in your domestic market

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

What do you think are the two biggest barriers to growing your exports? [All Markets]

All

Exporters

p43



Base: All

Global results

29%

47% 41% 40% 38% 36% 34% 32% 31% 30% 28% 27% 24% 24% 20% 19% 18% 15%

21%

15%

11% 16% 10%

26% 19%

35%

19% 16%

15% 17% 25% 21% 33%

12% 20% 26%

21%

14% 24%

11%

15%

15%

20%

15%

20% 24%

22% 21% 17%

12%

27% 63%

23%

40%

16%

16% 16%

21% 24%

13% 15%

9%

14% 24%

21%

12% 11% 20%

16%

4%

10%

7%

14% 8% 8%

13% 13% 11% 12% 8% 15%

6% 14%

24% 23% 23%

4% 1%

30%

11%

What one thing do you think your Government should be doing more to help businesses grow exports?

Other

Provide advice and guidance

Champion businesses and raise awareness abroad

Changes to legislation

Financial incentives

p44



Base: All

Global results

Export growth: three-in-ten think their government should provide financial incentives to help businesses grow exports

Export growth: very few agree that they receive the support they need from government to grow their exports

12%

40%

35%

31%

19%

18%

18%

16%

15%

14%

13%

13%

13%

10%

10%

8%

7%

6%

All Markets

Malaysia

Singapore

North Africa

Australia

Canada

France

USA

Poland

Brazil

Germany

Switzerland

Austria

Spain

Ireland

UK

South Africa

Portugal

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]

p45



Base: All

Global results

p55

USA summary (1)



Country summaries

USA

Canada

Germany

France

UK

Spain

South Africa

Ireland

Poland

Switzerland

Portugal

Brazil

Malaysia

Singapore

Austria

North Africa (Morocco and Tunisia)

Australia

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

USA summary (1)



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

USA summary (2)



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

Canada summary (1)



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

Canada summary (2)



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

Germany summary (1)



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

Germany summary (2)



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

France summary (1)



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

France summary (2)



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

UK summary (1)



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

UK summary (2)



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

Spain summary (1)



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

Spain summary (2)



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

South Africa summary (1)



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

South Africa summary (2)



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

Ireland summary (1)



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

Ireland summary (2)



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

Poland summary (1)



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 77% are confident that their company has adequate cyber security.

p73

Poland summary (2)



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

Switzerland summary (1)



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

Switzerland summary (2)



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

Portugal summary (1)



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

Portugal summary (2)



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

Brazil 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

Malaysia summary (1)



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 work-

life 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

Malaysia summary (2)



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

Singapore summary (1)



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

Singapore summary (2)



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

Austria summary (1)



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

Austria summary (2)



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

North Africa (Morocco and Tunisia) summary (1)



*low base size (67) in North Africa

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).

p87

North Africa (Morocco and Tunisia) summary (2)



*low base size (67) in North Africa

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

Australia summary (1)



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

Australia summary (2)



Populus Limited Northburgh House 10 Northburgh Street London EC1V 0AT www.populus.co.uk

Owen Thomas Consultant T +44 [0]20 7553 4144 E [email protected]

p90

mailto:[email protected]

sage business index 2014 global summary v3

Documents

global business index

business confidence

global economies

global economy

recovery business

sage bite global

north africa

south africa