A fall in business confidence in fast-growing economies such as South Africa has reduced the gap with mature markets as efficiency becomes the key driver to remaining competitive without compromising on growth.
The latest Regus survey reveals that globally firms will prioritise cost-cutting measures, from talent retention to flexible workspace, to gain maximum advantage from existing assets and expand fast and flexibly.
The 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. In South Africa, business confidence has dropped from 121 points in April 2013 to 114, just above the global average of 113 points.
The report also indicated that South African businesses, aware of reports of slow recovery, will focus on staff retention and flexible working over the next twelve months to optimise business processes and gain maximum advantage from existing assets without compromising on expansion plans.
Commenting on the research, Regus area director for SA, Kirsten Morgendaal says: “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.
“Our research also shows that utilising flexible workspaces can have a significant impact on the bottom line, encouraging sustainable growth.”
Other BCI findings include:
* Companies reporting revenue growth in South Africa have slipped from 57% to 55% while those reporting profit growth have grown only modestly from 43% to 44%; and
* The top four efficiency outcomes for South Africa are: cost effective services providers (59%); higher return on investment on marketing and advertising (50%); improved staff retention (34%); and less fixed office space (33%).