Business confidence gap narrows

* Developing world index falls as focus turns to sustainable growth

A fall in business confidence in fast-growing economies has reduced the gap with mature markets as efficiency becomes the key driver to remaining competitive without compromising on growth, the latest Regus survey found. Research reveals that firms will prioritize cost-cutting measures, from talent retention to flexible workspace, to gain maximum advantage from existing assets and expand fast and flexibly.
The latest Regus Business Confidence Index (BCI) survey of more than 20,000 senior executives across 95 countries found that while confidence levels have risen by five points to 109 in mature economies, there has been as drop of nine points to 117 in emerging countries. Globally, the Regus BCI now stands at 113 points, down one point from April.
The report also indicated that businesses will focus on cost-effective service provisions over the next twelve months to optimise business processes and gain maximum advantage from existing assets without compromising on expansion plans.
“While mature economies are showing confidence gains as their economic outlook turns positive, the emerging world is slowing the pace of growth as businesses aim to become increasingly efficient to promote productivity,” said Regus CEO Mark Dixon. “Our research also shows that utilising flexible workspaces can have a significant impact on the bottom line, encouraging sustainable growth.”
Other BCI findings suggest that companies reporting revenue and profit growth remain unchanged since April 2013, with 49% of businesses reporting revenue growth and 39% reporting rising profits
The top four efficiency outcomes are:
– Cost effective services providers (53%);
– Higher return on investment on marketing and advertising (41%);
– Improved staff retention (36%);
– Less fixed office workspace (34%).
The world’s leading CRM platform salesforce.com, relies on Regus business centres in half of its 26 locations worldwide. The company has seen phenomenal growth since it was founded in 1999 in San Francisco and has been ranked the World’s Most Innovative Company by Forbes Magazine for the Third Year in a Row.
Larry Wolfert, Senior Director, global real estate, said: “Working with a single point of contact at Regus for our global workspace needs makes our global expansion manageable and efficient. We have also saved a lot of money avoiding the upfront capital expenditure associated with fitting out traditional office space.”