Amid Eurozone crisis and uncertain economic climate, emerging economies of India and Brazil have topped the business confidence index confirming their role as key drivers of the global economy, according to the global Regus Business Confidence Index.
Brazil (148) and India (143) top the business confidence chart confirming their role as key drivers of the global economy. At the other extreme is Japan at 82 points, which is still suffering from March 2011 disasters. While still topping the Index, Indian businesses confidence has dipped two Index points to 143, from a high in September 2011.
Nevertheless, Indian companies reporting revenue growth increased, reaching 69 per cent compared to 63 per cent six months ago. Companies reporting profit growth (58 per cent) suffered a 1 per cent squeeze.
Mindful of the need to contain costs in the quest for sustainable growth businesses identify increased use of pay-as-you-go business services, increasing flexible workspace and a shorter supply chains the most effective cost cutting measures for the coming months.
Looking back, Indian firms identify paying for unnecessary office space (61 per cent) as the main reason for corporate distress during the downturn followed by difficult access to cost effective capital (58 per cent).
Respondents identified increased use of pay-as-you-go business services (49 per cent), increasing flexible workspace (40 per cent) and shorter supply chain (39 per cent) as the areas where companies could best make savings without damaging growth prospects.
Indian firms report that a wider distribution of customers (40 per cent) and more flexible working conditions for staff (35 per cent) would make the greatest contribution to enhancing future business stability as a platform for growth.
The Business Confidence Index rating is lower for small businesses (134) than for large firms (156).
In particular, in India where the budget reportedly may slim down corporate earnings by 2 per cent, respondents confirm they are seeking to rely on more flexible working practices ranging from a greater use of pay-as-you-go business services to more flexible working conditions for staff.
With solutions readily available on the market for flexible workspace arrangements there is no doubt that the number of businesses benefiting from more nimble and scalable arrangements will increase in the coming years."
The Business Confidence Index is based on interviews conducted during January 2012 of over 16,000 business respondents from the Regus global contacts.
