Monday 21st October, 2013

Global business confidence is returning, according to the Annual Business Index by Sage. The index was complied with input from over 11,000 small and medium sized businesses (SMEs) in 17 countries across the world and found that businesses are now more confident than they have been in three years since the index first started. Businesses were most confident about their own prospects, which scored a global average of 62.01 out of 100.

The Index also found that in the new climate of economic confidence, business decision-makers identified risk-taking as key to growth.

In spite of greater optimism, most businesses feel that banks and governments are behind the curve and are failing to make the most of increased business confidence. Globally more than two-thirds (69%) of businesses agree that banks aren’t doing enough to make funding available to small businesses and a similar proportion (63%) feel that governments need to put more pressure on banks to lend.

Sage Group CEO Guy Berruyer, said: “Businesses around the world are more optimistic about their own prospects. This shows in their willingness to take chances to succeed. However, if businesses are to take advantage on the upsurge of economic confidence, then they need support and access to a wide range of funding sources, as in the US.

He added: “I believe that the development and encouragement of more diversified funding sources, such as angel investment, venture capital, peer-to-peer and crowd-funding, should be a priority. Confidence is returning; a lack of support and access to finance now for small businesses could have detrimental effects on a national and international level.”

Due to this perceived lack of support from banks and government, more than half (57%) of businesses agree that they need to look at alternative funding sources. However, while 42% of small businesses feel positive towards peer-to-peer lending and crowd-funding, the majority (53%) feel they do not have enough information about it, while only 4% have already used it.