Regus’ Regional Director at Regus, Celia Donne, warns that though business tends to be recovering, it’s foremost to be assure oneself that the small firms do navigate this road to recovery all with large ones.
Politicians and media are fixated with figures of GDP. Commentators devote 100s of words for the falls or rises of mere 10s of % points; the political parties could plunge into the gloom on basis of one single figure.
It is all useful for helping to predict economic future, though only till a point. At times, it is more helpful that opinions of the people around on ground are taken. Asking the businesses regarding their revenues, plans and expectations could give one clearer picture about business landscape.
During a latest survey, Regus did quiz 17,000 businesses throughout the world about their forward projections and experiences. The picture which emerges from the recent Business Confidence Index happens to be bright. Especially, 2 of the findings are really pleasing.
First, this survey shows significant confidence level throughout the world. The businesses in many major economies tend to be emerging into light after recession’s gloom. The revenues and profits are up, they are confident regarding the future, as well as planning on spending more towards sales, product development and marketing.
The worldwide Business Confidence Index, at the present, stands on 125, a high of all-time, up by 31 points at where it was standing during April, 2010.
Secondly, this survey does show convergence between the expectations of companies as well as their actual profits and revenues. Previously, the predictions they gave regarding revenue growth didn’t match actual growth. Now, this time, the 61% respondents did expect the revenue growth. Also, 50% achieved it actually.
Results which cause concern, anyway, are that the small businesses tend to be faring bit less well compared to the larger counterparts they have, and that’s especially evident within UK. Although the optimism of UK business mirrors global trend to the extent that it does stand at the highest point from the October of 2009 (by 108 points), there’s evident gulf between the small firms (at 103 in Index) and the large firms .
Also, significantly the small businesses’ lower proportions chalked up the rises in profit compared to the large firms at 26% as well as 51% in that order.
Many factors might have created this gap: are the small firms even still finding the finance difficult to access, therefore, experiencing brake in growth? Did they tend to be slower in taking advantage of the economic recovery? Yet, are they benefit from trickle-down influence of the large firms expending more? And the Government needs to do even more for their sake?
Nevertheless, Regus survey indicates that small businesses for sure are full with plans for future. They are keen in upping their investment for marketing, for instance, with exactly 39 percent net of the small firms worldwide planning to get this done, compared to the 23% large firms. Around 8 out of 10 small firms speculate that their revenues would rise in next twelve months.
It’s hoped that all these plans for marketing would bear fruit. And, that there would be convergence in proportion of large and small businesses which experience the profit growth. Within every economy, emerging or developed, the small firms do represent future. So let us keep track on how it’s being done by them, let us help them in navigating recovery, and let us not bury the experiences they already have beneath macroeconomic data figures such as GDP.
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