The Sage Business Index 2014

The Sage Business Index 2014
01 - www.sage.com/businessindex © Sage Group PLC

Sage Business Index 2014
Contents
Contents
01 About the Sage Business Index
02 Introduction
03 Executive summary of global findings
04 Country summaries
Australia
Austria
Brazil
Canada
France
Germany
Ireland
Malaysia
North Africa
05 Methodology
Poland
Portugal
Singapore
South Africa
Spain
Switzerland
UK
USA

About the Sage Business Index
01 About the Sage
Business Index
Populus provided online interviews
with 13,710 decision-makers in
businesses in the USA, Canada,
Germany, Austria, Switzerland, France,
UK, Ireland, Spain, Portugal, Poland,
South Africa, Malaysia, Singapore,
Brazil, Australia and North Africa
(Morocco and Tunisia). The businesses
were drawn from two sources:
• 8,248 respondents were drawn from
Sage’s local customer databases
across the USA, Canada, Germany,
Austria, Switzerland, France, UK,
Ireland, Spain, Portugal, Poland,
South Africa, Malaysia, Singapore,
Brazil, Australia and North Africa
(Morocco and Tunisia). Sage’s
local operating companies sent an
email invitation to participate to
specially selected databases with
a survey link provided by Populus.
• 5,462 respondents were drawn from
a dedicated online panel of business
people, which has 2.4 million
members worldwide. A random
sample of respondents whose
profiles met Sage’s criteria were
invited to take part in the survey,
ensuring a spread of business
sizes and industries. Respondents
were then asked a screener
question to ensure that they were a
decision maker at their business.
Note: Due to the smaller sample
sizes, the findings in Morocco
and Tunisia were combined to
create findings for North Africa

Introduction
02 Introduction
The Sage Business Index is an annual
global measure of confidence across
small and medium sized companies.
Since our last Sage Business Index
in summer 2013, we have extended
the reach of the survey to include
13,710 businesses from 18 countries,
this time adding Australia.
This has provided us with a clear
picture of the pressures and
challenges faced by small and
medium sized companies around
the world. Sage surveyed decision-makers
from small and medium
sized businesses across the globe
to find out how confident they
were about the prospects for their
business and the national and global
economy. The research identifies
how decision-makers approach risk
and what they see as the barriers to
business growth within their country.
All scores recorded this year were
at their highest since the Sage
Business Index began in 2011,
suggesting that business confidence
has recovered following the worst
of the global economic crisis.
Business decision makers were
asked to plot their confidence on
a scale of 1-100 on three cores
areas affecting their business:
• Confidence in their businesses
prospects has risen 2.13
points to 64.14
• Confidence in their country’s
economy has risen 2.78
points to 51.63
• Confidence in the global economy
has risen 3.08 points to 51.68
Global business confidence 2011 - 2014
Summer
2011
Spring
2012
Summer
2012
Summer
2013
Summer
2014
2013 -
2014
Prospects for
your business 57.88 58.86 56.46 62.01 64.14 +2.13
Your country’s
economy 47.11 47.26 42.47 48.85 51.63 +2.78
The global
economy 44.47 43.95 42.59 48.60 51.68 +3.08

Executive summary of global findings
03 Executive summary
of global findings
Global business confidence is at a Business confidence 2014 by country
four year high, with the majority of
businesses predicting growth in turnover
and staff in the next twelve months.
Confidence has been on the rise for
some time but we appear to have
reached a global tipping point where for
the first time businesses are optimistic
about the prospects for their business,
their national economy and the global
economy. This is underlined by their
business predictions for the year ahead.
To achieve business growth, globally over
a third of businesses aim to increase their
customer loyalty and the same proportion
aim to reduce operating costs. However,
businesses around the world believe
that growth is restrained by bureaucracy,
especially when it comes to exporting.
Confidence
According to the Sage Business Index,
businesses’ confidence in their own
prospects has risen from 62.01 in 2013
to 64.14 in 2014, the highest it has been
in four years. Business’ confidence in
their national economies has risen 2.78
points to 51.63, while businesses also
have greater confidence in the global
economy, with confidence rising three
points in the last twelve months to 51.68.
In Europe, countries are split over the
prospects for the European economy.
Businesses in Ireland and Spain are
most confident scoring 56.40 and 54.14
respectively, while the UK, Germany
and Poland are all more optimistic
than pessimistic. However, in Austria,
Switzerland and Portugal the reverse
is true, with all countries scoring below
50. France is the most pessimistic
about the European economy of all
nations surveyed, scoring just 44.08.
Prospect for
your business
(summer 2014)
Your country’s
economy
(summer 2014)
The global
economy
(summer 2014)
All markets 64.14 51.63 51.68
Australia 63.71 54.52 54.15
Austria 61.66 48.52 47.01
Brazil 70.55 43.57 53.72
Canada 67.48 56.04 51.20
France 55.45 35.07 47.44
Germany 63.63 57.32 50.53
Ireland 64.99 58.67 57.34
Malaysia 66.62 49.81 51.66
North Africa 71.76 49.03 48.89
Poland 60.88 62.32 51.70
Portugal 57.94 44.70 48.18
Singapore 66.18 59.14 54.85
South Africa 65.69 34.54 47.50
Spain 61.48 50.00 54.34
Switzerland 64.46 57.53 48.38
UK 66.29 61.76 55.90
USA 67.53 53.22 48.60

Executive summary of global findings
03 Executive summary
of global findings
Predictions for growth
The global rise in confidence is apparent in
businesses’ predictions for the year ahead.
The majority of businesses (58%) anticipate
their turnover will grow by an average of
2.5% in the next year, while 43% say the
number of people their business employs
will increase in the same time period.
Attitudes to risk
The shift in confidence has also seen
businesses more open to risk as
nearly half (49%) of business decision
makers described themselves as risk-seekers,
up 2% from last year. However,
nearly a third of businesses (35%)
said that they have become more risk
averse over the last seven years.
Exporting
Among the most confident, were those
businesses operating beyond their
domestic market. Over a third (41%) of
businesses surveyed say they do business
in countries outside their own, stating that
exports account for 20% of their turnover
on average. Indeed, exporters say the
last year has been a good one with 40%
seeing their level of exports increase
and just 11% saying they have fallen.
Furthermore, over half of those companies
(54%) expect export turnover to increase
by approximately 3.2% in the next year.
However, many businesses do not feel they
are supported in their ambitions to grow
their exports. Just 12% say they receive
the support they need from government,
citing the logistical costs (30%) and
the level of competition in international
markets (25%) as the two biggest barriers
to exporting. Nearly a third of businesses
(29%) believe the one thing government
should do to help them grow exports is
to provide greater financial incentives.
Predictions for growth in the next year
58 % 43 %
anticipate their
turnover will grow
in the next year
say the number of people
their business employs
will increase next year
2013
2014
47%
49%
Decision-makers describing themselves as a risk-seeker
Market Percentage
All markets 54%
North Africa 78%
Malaysia 68%
Spain 67%
Brazil 66%
Poland 63%
Australia 60%
South Africa 59%
Ireland 57%
Market Percentage
Canada 54%
USA 52%
UK 50%
Portugal 50%
Germany 47%
France 44%
Switzerland 42%
Singapore 41%
Austria 40%

Country summary
04 Country summaries
Australia
Over half of business decision
makers (53%) described
themselves as risk-seekers, 4%
above the global average of 49%
Confidence
Australian businesses are optimistic
about their own prospects scoring
their confidence at 63.71 points out
of 100. They are more confident than
many other countries when it comes
to their national economy scoring it at
54.52, 2.89 points above the global
average. Similarly, confidence in the
global economy was 2.47 points
above the global average at 54.15.
This suggests that Australian business
decision-makers believe that both
the national and global economies
are improving rather than declining.
Australian business optimism also
resulted in predictions for growth
over the coming year. Over half of
businesses (53%) anticipate their
turnover will grow by an average of
0.6% in the next year. While 40% say
the number of people their business
employs will increase by 2.7 people
on average in the same time period.
Attitudes to risk
Australian confidence has also seen
businesses more open to risk. Over
half of business decision makers (53%)
described themselves as risk-seekers,
4% above the global average of 49%.
Exporting
Among the most confident, were
those businesses operating beyond
their domestic market. Nearly half of
those surveyed (42%) currently do
business in countries outside their
own, stating that exports account for
21% of turnover on average. Indeed,
exporters say the last year has been
a good one with 41% seeing their
level of exports increase and just 11%
saying they have fallen. Furthermore,
the majority (60%) expect turnover to
increase by 3.5% in the next year.
However, many businesses do not feel
they are supported in their ambitions
to grow their exports. Less than
a fifth (19%) say they receive the
support they need from government,
with over a third (34%) saying the
one thing the government should
do to help them grow exports is to
provide greater financial incentives.

Country summary
Austria
Confidence
Austrian businesses are most
optimistic when it comes to their own
prospects, with confidence rising
3.57 points to 61.66 since this time
last year. Confidence in the national
economy rose marginally, climbing
0.42 to 48.52. However, that remains
3.11 points below the global average.
Similarly, despite a slight rise of 0.36,
confidence in the global economy also
remains lower than elsewhere, scoring
47.01 compared to 51.68 globally.
In Europe, countries are split over
the prospects for the European
economy. Businesses in Ireland and
Spain are most confident scoring
56.40 and 54.14 respectively, while
the UK, Germany and Poland are
all more optimistic than pessimistic.
However, in Austria, Switzerland and
Portugal the reverse is true, with all
countries scoring below 50. France
is the most pessimistic about the
European economy of all nations
surveyed, scoring just 44.08.
Despite pessimism over the national,
European and global economy, the
majority of businesses in Austria
are planning for growth over the
next twelve months. Over half of
Nearly half of businesses (46%)
say their headcount will increase
in the next twelve months, by an
average of 1.2, while just 18% say
they plan to reduce staffing levels
turnover will grow in the next year,
while just 17% predict turnover will
decrease. Similarly, nearly half of
businesses (46%) say their headcount
will increase in the next twelve months,
by an average of 1.2, while just 18%
say they plan to reduce staffing levels.
Attitudes to risk
Business attitudes to risk also appear
to be changing. Over two fifths of
business decision makers (41%)
described themselves as risk-takers,
compared with just 33% in 2013.
Exporting
Among the most confident were those
domestic market. Over two thirds of
Austrian businesses (70%) say they
do business in countries outside their
own, stating exports account for 25%
of their turnover on average. Indeed,
a good one with 36% seeing their
level of exports increase and just 10%
two fifths of those companies (40%)
expect export turnover to increase by
approximately 0.7% in the next year.
to grow their exports. Just 13%
say they receive the support they
need from government, with over a
quarter of businesses (27%) saying
the one thing government should

Country summary
Brazil
Confidence
Brazilian businesses are among the
most optimistic in the world when it
comes to their own prospects, despite
confidence falling 1.07 points to 70.55
since this time last year. However,
while Brazilian businesses remain
optimistic about their own prospects,
confidence in the national economy
dropped by 3.81 points to 43.57.
However, confidence in the global
economy is improving, rising 1.66
points to 53.72 since last year, 2.04
points above the global average.
Despite falling confidence in the
national economy, businesses in
Brazil are predicting significant growth
over the next twelve months. Nearly
three quarters of businesses (72%)
anticipate their turnover will grow
in the next year by an average of
7.3% the highest rate in all countries
surveyed, while just 16% predict
turnover will decrease. Similarly,
nearly two thirds of businesses (65%)
they plan to reduce staffing levels.
Attitudes to risk
Business attitudes to risk also
appear to be changing. Over three
fifths of business decision makers
(61%) described themselves as
risk-takers, compared with 56% in
2013. Although nearly a third (32%)
said they have become more risk
Exporting
Among the most confident were
their domestic market. Over a third of
Nearly three quarters of
businesses (72%) anticipate
their turnover will grow in the
next year by an average of
7.3% the highest rate in all
countries surveyed
Brazilian businesses surveyed (36%)
say they do business in countries
outside their own, stating that exports
account for 18% of their turnover on
average. Indeed, exporters say the
last year has been a good one with
41% seeing their level of exports
increase and just 13% saying they
have fallen. Furthermore, two thirds
of those companies (66%) expect
export turnover to increase by
However, many businesses do
not feel they are supported in their
ambitions to grow their exports. Just
14% say they receive the support
they need from government, with
over a third of businesses (35%)
saying the one thing government
should do to help them grow exports
is to make changes to legislation.

Country summary
Canada
Confidence
Canadian businesses are increasingly
optimistic about their own prospects
with confidence rising 0.68 to 67.48
over the last year, 3.34 points above
the global average of 64.14. While
businesses believe that the Canadian
economy is improving, confidence
has fallen 3.39 points to 56.04 over
the last twelve months. They are
also less optimistic about the global
economy, with confidence down 1.35
points to 51.20 over the last year.
The global rise in confidence is
apparent in businesses’ predictions
for the year ahead. More than half of
Canadian business decision-makers
(54%) expect revenue to grow in the
next year by an average of 2.5% (in
line with global respondents). More
than a third (37%) also anticipate
that the number of people employed
by their company will increase in the
next year by 1.6 people on average,
compared with just 9% who say they
expect to reduce staffing levels.
Attitudes to risk
Canadian businesses have also
become more open to risk with over
half (53%) of Canadian business
decision makers describing
themselves as risk-seekers, up 1%
from last year. This puts them well
above the global average (49%
risk seeking) but marginally behind
their US counterparts (54%).
Exporting
Canadian businesses are relatively
unlikely to do business overseas,
with two thirds (62%) saying that
their company does no business in
countries outside their own, and only
15% saying that they do business in
three or more countries. Those who
export, say their main markets are the
USA (67%) and China (at just 4%).
However, 39% of Canadian exporters
say export revenue increased in the
last year, with 54% expecting export
revenue to increase by an average of
2.3% over the coming twelve months,
reflecting a more positive outlook.
However, only 18% of Canadians feel
they currently have the support they
need from government to grow their
exports. Over a third (31%) believe the
government should provide greater
financial incentives to help, while 20%
believe the government should be
championing their businesses abroad.
More than a third (37%) anticipate
that the number of people employed
by their company will increase in the
next year by 1.6 people on average,
compared with just 9% who say they
expect to reduce staffing levels

Country summary
France
Confidence
French businesses’ remain optimistic
about their own prospects, with
confidence rising 0.29 points in the last
twelve months. However, confidence
in the national economy fell by 0.10
points to 35.07, among the lowest
scores registered this year. While
confidence in the global economy is
improving, rising 3.33 points to 47.44
since last year, businesses remain
more pessimistic than optimistic.
Businesses appear split over their
prospects for growth over the
next twelve months. Over a third
of businesses (38%) anticipate
their turnover will grow in the next
Over a third of
businesses (38%)
anticipate their
turnover will
grow in the next
year, while 37%
predict turnover
will decrease
year, while 37% predict turnover
will decrease. On average French
businesses project that turnover in the
next twelve months will fall by 1.6%.
Despite this, more than a quarter of
French businesses say their headcount
will increase in the next twelve months,
by an average of 0.4, while just 16%
say they plan to reduce staffing levels.
Attitudes to risk
The drop in confidence has also
affected attitudes to risk with 47% of
business decision makers describing
themselves as risk-takers, compared
with 48% in 2013. However, nearly
half of businesses (49%) said
that they have become more risk
Exporting
their domestic market. Nearly half
(44%) of businesses surveyed say
they do business in countries outside
their own, stating that exports
have fallen. Furthermore, nearly half
two fifths of businesses (40%)
saying the one thing government
should do to help them grow exports
is to champion their businesses
and raise awareness abroad.

Country summary
Germany
Confidence
Businesses in Germany are more
optimistic than ever about their own
1.81 points to 63.63 since 2013.
They are also increasingly confident
about the German economy, which
climbed 3.19 points to 57.32. Last
year, German businesses were more
pessimistic than optimistic about the
global economy (47.93), however
this year businesses feel that it is
finally starting to improve (50.53).
Germany joins the UK, Ireland, Spain,
and Poland in being more optimistic
than pessimistic about the European
economy. However, in France, Austria,
Switzerland and Portugal the reverse
is true, with all countries scoring below
50. France is the most pessimistic
about the European economy of all
nations surveyed, scoring just 44.08.
More than half of German businesses
(58%) predict that their turnover will
grow in the next year by an average
of 2.3%, while only 18% anticipate
that it will shrink. Businesses are also
Businesses in Germany are more
optimistic than ever about their own
1.81 points to 63.63 since 2013
planning to employ more staff, with
38% anticipating their headcount will
increase by an average of 1.5%.
Attitudes to risk
The rise in confidence appears to
have had an adverse impact on
businesses’ attitudes to risk. Germany
remains one of the most risk averse
countries with only Portuguese and
Austrian businesses more risk averse.
Just 43% describe themselves
as risk-takers, which is down 2%
from the same time last year.
Exporting
domestic market. Nearly half of those
surveyed (47%) say they do business
in countries outside their own, stating
that exports account for 17% of their
turnover on average. Indeed, exporters
say the last year has been a good
one with 39% seeing an increase
in the level of exports and just 10%
nearly half of those companies (47%)
expect export turnover to increase
by an average of 2.2% next year.
to grow their exports. Just 13%
say they receive the support they
need from government, with 24%
saying the one thing the government
should do is provide greater financial
incentives and 21% suggesting
changes in legislation are necessary.

Country summary
Ireland
Confidence
Irish businesses are more optimistic
about their own prospects with
confidence rising 2.92 points to
64.99 in 2014, the highest it has
been in two years. But, perhaps
more encouragingly, business
confidence in the national economy
has seen a large increase. For the
first time, Irish businesses think
the economy is improving, with
confidence up 10.45 points to
58.67. Businesses also believe the
global economy is improving, with
confidence rising three points in
the last twelve months to 51.68.
The rise in confidence is reflected
in businesses’ predictions for the
year ahead. The majority (63%)
anticipate their business turnover will
of 3.2%. Additionally, 48% expect
the number of people employed by
their company to increase by an
average of 2.7 people, while just
8% expect the number to fall.
Attitudes to risk
The shift in confidence has also
seen businesses more open to risk.
Nearly half (48%) of business decision
makers described themselves as
risk-seekers, up 2% from last year.
However, two-fifths of businesses
(40%) said they have become more
risk averse over the last seven years,
5% above the global average (35%).
Exporting
their domestic market. Half of those
surveyed (50%) do business in
countries outside their own, stating
business’s turnover. Indeed, exporters
say the last year has been a good one
with 39% saying the level of exports
has increased in the last year and just
5% saying it has fallen. Furthermore,
over half of exporters (57%) anticipate
that export turnover will increase in
the next year by an average of 4.9%.
However, only one-in-ten (10%) Irish
business decision makers feel they are
supported in their ambitions to grow
their exports. Over a third (41%) of all
businesses think that the one thing
that the Irish government should be
doing to help businesses grow exports
is offering greater financial incentives.
For the first time, Irish
businesses think the economy
is improving, with confidence
up 10.45 points to 58.67

Country summary
Malaysia
Confidence
Malaysian businesses are increasingly
with confidence rising 0.37 points to
66.24, the highest it has been in the
last four years. However, confidence
in the Malaysian economy has fallen
2.29 points to 49.81, in the last twelve
months. Confidence in the global
economy has also fallen slightly,
dropping 0.10 points to 51.66.
The rise in confidence is apparent
in businesses’ predictions for
the year ahead. The majority of
turnover will grow by an average
of 0.6% in the next twelve months.
Two thirds of businesses (66%)
also predict their headcount will
increase over the next year by an
that staffing levels will decrease.
Attitudes to risk
Business attitudes to risk also
appear to have changed over the
last twelve months. While nearly
half (46%) of business decision
makers described themselves as
risk-seekers, this is down 6% from
last year. Over a third of businesses
(35%) said they have become more
risk averse over the last seven years.
Exporting
their domestic market. Over a third of
those surveyed (37%) do business in
that exports account for 24% of
their turnover on average. Indeed,
a good one with 46% seeing turnover
from exports increase and just 15%
seeing a decrease. Furthermore, 68%
expect turnover to increase by an
average of 2.9% in the next year.
to grow their exports. Only 40%
of businesses say they receive the
support they need from government
to grow their exports and nearly
half of businesses (47%) believe
Two thirds of
businesses (66%)
predict their
headcount will
increase over the
next year by an
average of 2.1,
while just 8% say
that staffing levels
will decrease

Country summary
North Africa
North African
businesses are most
optimistic about their
own prospects, with
confidence rising
10.84 points to 71.76
in the last year, the
highest score of all
countries surveyed
Confidence
North African businesses are most
with confidence rising 10.84 points
to 71.76 in the last year, the highest
score of all countries surveyed.
There were also increases in the
level of confidence in the national
and global economy, rising 3.17
points to 49.03 and 1.14 points to
48.89 respectively. Although these
figures suggest they remain more
pessimistic than optimistic about both.
Optimism over their own prospects is
apparent in businesses’ predictions
for the year ahead. Two-thirds
(66%) – the second highest globally
– anticipate their turnover will grow
by an average of 6.4% in the next
year. The same percentage also say
the number of people their business
employs will increase by an average
of 3 in the same time period.
Attitudes to risk
Businesses have also become more
open to risk with nearly two-thirds
(63%) of decision makers – the highest
globally – describing themselves as
risk-seekers, up 14% from last year.
Exporting
domestic market. Over half of North
African businesses surveyed (52%)
say they do business in three or more
turnover on average. Indeed, exporters
say the last year has been a good one
with 40% seeing their level of exports
have fallen. Furthermore, over three
quarters of those companies (78%)
ambitions to grow their exports.
Just under a third (31%) say they
receive the support they need from
government and nearly two-thirds
of businesses (63%) believe that
the government should champion
businesses and raise awareness
abroad to further grow exports.

Country summary
Poland
They are the most confident of the
countries surveyed when it comes
to their national economy, with
scores rising 2.13 points to 62.32
Confidence
Polish businesses are more optimistic
than ever about their prospects with
confidence rising 3.28 points to
60.88. They are the most confident
of the countries surveyed when it
comes to their national economy,
with scores rising 2.13 points
to 62.32, and are increasingly
confident in the global economy,
rising 4.65 to 51.70 since last year.
Poland’s rise in confidence is apparent
in businesses’ predictions for the
year ahead. Two-thirds of businesses
(63%) predict that their business
turnover will grow by an average of
3.6% in the next year, compared to
just 22% who believe it will shrink.
Similarly, 50% anticipate that the
number of people employed by their
company will increase by an average
of 2.2 in the next year, with only 12%
planning to reduce staffing levels.
Attitudes to risk
seen businesses more open to
risk. Nearly two-thirds of business
decision makers (59%) described
themselves as risk-seekers, up
7% from last year, and 10% higher
than the global average. However,
a quarter of businesses (25%) said
Exporting
their domestic market. Over a third
of those surveyed (43%) say they do
20% of their turnover on average.
Indeed, exporters say that the last
year has been a good one with 47%
saying the level of turnover generated
by exports has increased (more than in
any other market) with just 13% it had
fallen. Furthermore, 63% of exporters
anticipate exports will increase in the
next year by an average of 5.2%.
However, most Polish businesses do
15% say they receive the support they
need from government. 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.

Country summary
Portugal
Confidence
Portuguese businesses remain
to 57.94 in the last twelve months.
However, despite a significant rise of
7.34 points to 44.70, confidence in the
national economy remains 6.93 points
below the global average. Similarly,
despite confidence in the global
economy rising 5.79 points to 48.18
in the last twelve months, it remains
Portugal also appear to trail other
nations when it comes to their
prospects for growth over the
next twelve months. Just 42% of
businesses anticipate their turnover
will grow in the next year, compared
with 58% globally, while 30% predict
turnover will decrease. On average
Portuguese businesses predict that
turnover in the next twelve months
will fall by 0.6%. Despite this, more
than a quarter (29%) of businesses
Attitudes to risk
The rise in confidence has also
affected attitudes to risk with 40% of
business decision makers describing
with 38% in 2013. However, nearly
half of businesses (44%) said
Exporting
domestic market. Nearly a third (36%)
of businesses surveyed say they do
Indeed, exporters say the last year
has been a good one with 37% seeing
their level of exports increase and just
14% saying it has fallen. Furthermore,
nearly half of those companies (50%)
two fifths of businesses (40%) saying
Just 42% of businesses anticipate their
turnover will grow in the next year,
compared with 58% globally, while 30%
predict turnover will decrease

Country summary
Singapore
Confidence
Singaporean businesses are among
the most optimistic despite decreasing
levels of confidence over the last
twelve months. Confidence in their
own prospects has fallen by 0.78
points to 66.18 in the last year but
remains 2.04 points above the global
average. Confidence in the national
economy has also fallen by 2.49 points
to 59.14 in the last twelve months,
but is 7.51 points above the global
average. While businesses also have
less confidence in the global economy,
with confidence dipping marginally by
0.3 point to 54.85, but staying 3.17
Despite their optimistic outlook, few
businesses in Singapore expect
significant business growth over
the next 12 months, in comparison
with other countries. Under half of
businesses (45%) anticipate turnover
will grow by an average of 1.8% in
the next year, compared with the
predicted global rate of 2.5%. Despite
this, nearly half of Singaporean
businesses (49%) say their headcount
will increase by an average of 2.4
while just 9% say it will decrease.
Attitudes to risk
Singaporean businesses are also
more open to risk than this time last
year. Nearly half of business decision
makers (48%) described themselves
as risk-seekers, up 4% from last
year. However, nearly two-thirds
of businesses (61%) said that their
attitude to risk has remained the
same over the last seven years.
Exporting
Businesses in Singapore are more
likely to export than those in most
other countries. Over three quarters
(76%) currently do business outside
of their domestic market, stating
that exports account for 29% of
their turnover on average. Indeed
exporters say the last year has
been a good one with 38% seeing
Confidence in their own
prospects has fallen by
0.78 points to 66.18 in
the last year, but remains
2.04 points above the
global average
their level of exports increase and
just 11% saying they have fallen.
Furthermore, 41% of exporters
35% of Singaporean businesses say
they receive the support they need
from government, with 38% saying

Country summary
South Africa
Confidence
While South African businesses
remain optimistic about their own
prospects, confidence fell by 0.11
points to 65.69 in the last twelve
months. Confidence in the national
economy dropped by 5.38 points
to 34.54, and was the lowest of all
countries surveyed this year. However,
confidence in the global economy is
improving, rising 0.73 points to 47.50
since last year, although it remains
Despite low levels of confidence in
the national and global economy,
businesses appear optimistic about
their prospects for growth over
the next twelve months. Nearly
two thirds of businesses (65%)
anticipate their turnover will grow
in the next year by an average of
4.9%, while just 22% predict turnover
will decrease. Similarly, over half
(51%) of South African businesses
Attitudes to risk
Business attitudes to risk also appear
to be changing. Half of business
with 48% in 2013. Although 40%
said that they have become more risk
Exporting
their domestic market. Over two
fifths of businesses (41%) surveyed
say they do business in countries
outside their own, stating that exports
have fallen. Furthermore, over half
7% say they receive the support they
Nearly two thirds
of businesses
(65%) anticipate
their turnover
will grow in the
next year by an
average of 4.9%,
while just 22%
predict turnover
will decrease
need from government, with over
a third of businesses (36%) saying
offer more financial incentives.

Country summary
Spain
67% of exporting
businesses expect
export turnover
to increase by an
average of 3.9%
next year
Confidence
Spanish businesses’ confidence in
their own prospects has risen from
55.8 in 2013 to 61.48 in 2014, the
highest it has been in four years.
Confidence in Spain’s economy has
also increased 6.81 points to 50.00,
while businesses also have greater
confidence in the global economy,
in the last twelve months to 54.34.
This rise in confidence is apparent in
businesses’ predictions for the year
ahead. Six-in-ten Spanish businesses
(60%) forecast their turnover will
of 1.5%, while only 23% predict that
it will shrink. Similarly, 42% say their
number of employees will increase
by an average of 1.6 with just 11%
saying they will reduce staffing levels.
Attitudes to risk
seen businesses more open to risk
with over half (52%) of business
decision makers describing
themselves as risk-seekers, just
above the global average of 49%.
Exporting
domestic market. Over half of those
surveyed (58%) do business outside of
their own country, stating that exports
average. Indeed, exporters say the last
year has been a good one with 46%
Furthermore, 67% of those companies
expect export turnover to increase
by an average of 3.9% next year.
to grow their exports and want more
financial support as well as advice
and guidance. Just 10% say they
receive the support they need from
the government. To grow exports,
30% say that financial incentives
would help, followed by 24% who
claim that the government should
champion their businesses and raise
awareness abroad, and another 24%
who state that the government should
provide more advice and guidance.

Country summary
Switzerland
Nearly half (43%) of those surveyed say
they do business in countries outside
their own, stating that exports account
for 19% of their turnover on average
Confidence
Swiss businesses are optimistic about
their own prospects, with confidence
rising 0.93 points to 64.46 in the last
year. Similarly, confidence in the Swiss
economy is improving rising 0.05
points to 57.53. However, confidence
in the global economy has fallen by
2.15 points to 48.38, suggesting that
businesses are more pessimistic than
optimistic when it comes to economic
conditions in the rest of the world.
The rise in confidence in businesses’
own prospects is reflected in their
predictions for the year ahead.
The majority (51%) anticipate an
increase in turnover by an average
of 1.5%. However, only 32% plan
to hire more people in the next year,
compared with 43% globally.
Attitudes to risk
While confidence has remained
stable in Switzerland since 2013,
businesses have become more
open to risk. Nearly half of business
themselves as risk-seekers. However,
nearly a third of businesses (35%)
said they have become more risk
Exporting
their domestic market. Nearly half
(43%) of those surveyed say they do
Indeed, exporters say the last year has
been a good one with 30% seeing an
increase in the level of exports and just
9% seeing a decrease. Furthermore,
42% anticipate that export turnover
will increase in the next year.
ambitions to grow their exports.
Just 13% say they receive the
support they need from government.
Nearly a quarter (23%) say the
one thing the government should
do to help them grow exports is
to champion their businesses and
raise awareness abroad, while 20%
say the government should provide
greater financial incentives.

Country summary
UK
Confidence
Businesses in the UK are more
optimistic about the prospects for
their own business rising 3.74 points
to a four-year high of 66.29. Similarly,
businesses have greater confidence
in the national economy following a
7.81 increase to 61.76 in the last year,
putting them 4.44 points ahead of
German businesses and 26.69 points
ahead of those in France. Confidence
in the global economy is also the
highest it has been in four years,
after rising 5.15 points to 55.90, 4.22
Spain are most confident, scoring
The rise in confidence is reflected in
ahead. Nearly two-thirds (63%) expect
their turnover to grow in the next year
by 3.5% on average. Almost half of
businesses (47%) anticipate that the
number of people their company
employs will also increase by an
average of 1.9, compared with just
6% who believe it will decrease.
Attitudes to risk
The rise in confidence has also
resulted in a shift in business
attitudes. Nearly half of business
decision makers (44%) describe
themselves as risk seekers, up 2%
from last year. However, the UK still
ranks as one of the more risk averse
countries, trailing risk seekers in
the US (54%) and Brazil (61%).
Exporting
those who also do business outside
of their domestic market. Two fifths
(40%) of those surveyed currently
do business in countries outside
their own, accounting for 20% of
their turnover. Indeed, the last year
has been a good one for exporters
with 39% seeing an increase in
their level of exports and just 10%
seeing a decrease. Furthermore,
50% predict that turnover generated
by exports will increase by an
average of 3.4% next year.
In spite of this, few UK businesses feel
they receive enough help with exports
from the UK Government. Only 8%
feel they receive the support they need
to help grow their exports, with 28%
saying the government should offer
greater financial incentives and 22%
say it should champion businesses
and raise awareness abroad.
Businesses have greater confidence in the
national economy following a 7.81 increase
to 61.76 in the last year, putting them 4.44
points ahead of German businesses and
26.69 points ahead of those in France

Country summary
USA
Confidence
US business optimism over their
own prospects is the highest it has
been for four years, with confidence
rising 2.88 points to 67.53 in the
last year. Confidence in the local
economy is also improving, climbing
0.42 to a four-year high of 53.22.
However, despite an improvement of
0.80 points, doubts over the global
economy remain, with businesses
rating their confidence at 48.60, 3.08
points below the global average.
The rise in confidence is reflected in
ahead. The majority of businesses
(58%) anticipate their turnover will
grow by an average of 3.1% in the
next year (above the global average
of 2.5%). Nearly half (44%) say the
number of people their business
employs will also increase in the same
time period, by 2.5 people on average.
Attitudes to risk
More than half (54%) of American
decision-makers describe themselves
as risk seekers, and only a quarter as
risk averse, placing them above the
global average (49% risk seekers and
31% as risk averse). This is also a
7% increase in the number of risk-seekers
in the last twelve months.
Exporting
their domestic market. Nearly a
third of those surveyed say they do
Indeed exporters say the last year
has been a good one, with 45%
Furthermore, more than half (52%)
4.5% on average in the next year.
The majority of
businesses (58%)
anticipate their turnover
will grow by an average
of 3.1% in the next
year (above the global
average of 2.5%)
a quarter saying the one thing the
government should do to help them
grow exports is to make changes
to legislation, while 24% would like
to see greater financial incentives.

Index Methodology
05 Methodology
We have applied an index
methodology which allows us to
measure the changing mood of the
businesses surveyed in relation to
business and economic confidence.
The Sage Business Index is based
on a scale of one to 100 where 0
means a significant decline, 100
means a significant improvement,
and 50 means it is no different.
For the business confidence question
the scale translates to below 50
as less confident, over 50 is more
confident and 50 is no different. We
retrospectively applied this index
methodology to the countries that
took place in the first business survey
in February 2011 (US, Canada, UK,
Germany and France) where the
questions were asked as follows:
• “Do you feel your country’s
economy is recovering or
declining?” and “Do you feel the
global economy is recovering or
declining?” Sage Business Index
scores have been derived from
this data where answer options in
this study, and their Sage Business
Index score weighting, were: “It is
recovering significantly (100)”, “It
is recovering slightly (75)”, “It is no
different (50)”, “It is declining slightly
(25)”, “It is declining significantly (0)”
• “Are you more or less confident of
your business prospects over the
next year?” Sage Business Index
scores have been derived from
this data where answer options in
this study, and their Sage Business
Index score weighting, were:
“More confident (75)”, “No different
(50)” and “Less confident (25)”
About Sage
We provide small and medium sized
organisations with a range of easy-to-
use, secure and efficient business
management software and services
- from accounting and payroll,
to enterprise resource planning,
customer relationship management
and payments. Our customers receive
continuous advice and support
through our global network of local
experts to help them solve their
business problems, giving them the
confidence to achieve their business
ambitions. Formed in 1981, Sage
was floated on the London Stock
Exchange in 1989 and entered the
FTSE 100 in 1999. Sage has millions
of customers and more than 12,700
employees in 24 countries covering
the UK & Ireland, mainland Europe,
North America, South Africa, Australia,
Asia and Brazil. For further information
please visit www.sage.com
About Populus
Populus is an opinion research and
consultancy firm that specialises
in understanding the views of the
general public, customers, businesses
and key stakeholders. Best known
for its social and political research
as pollsters to media organisations
such as The Times, the BBC and
ITV News, it conducts large, regular,
research programmes for a wide
variety of clients, such as large
multinational companies in retailing,
food manufacturing, pharmaceutical,
financial services and communications
sectors, to public institutions,
membership organisations and NGOs.

Sage Group PLC
North Park
Newcastle upon Tyne
NE13 9AA
Global.communications@sage.com
@SageGroupPLC

The Sage Business Index 2014

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