19 Apr 2012
Confidence bounces back as businesses think of efficient growth initiatives
Chinese businesses confidence has bounced back to Index points to 130 since September, inverting the decline recorded between March and September 2011.
Beijing – April 19, 2012 - Chinese businesses confidence has bounced back to Index points to 130 since September, inverting the decline recorded between March and September 2011, according to the global Regus Business Confidence Index. A further mark of optimism is that companies reporting revenue growth increased, reaching 67% compared to 64% six months ago. Companies reporting profit growth (56%) also increased 1%. Mindful of the need to contain costs in the quest for sustainable growth businesses identify more use of third party providers, increasing sales through third parties and a shorter supply chains the most effective cost cutting measures for the coming months.
- Looking back, Chinese firms identify difficult access to cost effective capital (56%) as the main reason for corporate distress during the downturn followed by the cost of property leases (45%);
- Respondents more use of third party providers (49%), increasing sales through third parties (49%) and a shorter supply chain(47%) as the areas where companies could best make savings without damaging growth prospects;
- Chinese firms report that a wider distribution of customers (73%) and more flexible conditions for staff (43%) 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 (127) than for large firms (134).
Hans Leijten, Regus’s vice-president, East Asia, comments: “Finally, after a significant setback between March and September 2011, business confidence is beginning to grow again. In addition to this, the proportion of companies reporting revenue and profit growth has started to increase. However, in order to grasp growth opportunities in a sustainable way, businesses globally are still looking to cut overheads without damaging their growth prospects.
“In particular, as the growth target for 2012 is revised down to 7.5% from 8% in China1, respondents confirm they are seeking to rely on more flexible working practices ranging from increasing use of third party providers to introducing 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.”
Notes to Editors:
The Regus Business Confidence Index
In every edition, the Regus Business Tracker report presents an updated Business Confidence Index. This index is a measurement formed on an aggregate of positive and forward-looking statements combining year-to-date revenue and profit trends with views on the expected economic upturn in the coming months and aims to provide businesses with a single point of reference of the survey’s key findings. Its benchmark average was set at 100 in the first edition of the Regus Business tracker in September 2009.
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More than a million customers a day benefit from Regus facilities spread across a global footprint of 1,300 locations in 550 cities and 99 countries, which allow individuals and companies to work wherever, however and whenever they want to. Regus was founded in Brussels, Belgium in 1989, is headquartered in Luxembourg and listed on the London Stock Exchange. For more information please visit: www.regus.com
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