Business confidence gap narrows in West & North Africa
A fall in business confidence in fast-growing economies has reduced the gap with mature markets as efficiency becomes the key driver to remaining competitive without compromising on growth, but North and West Africa counter the trend finds latest Regus survey. Research reveals that globally firms will prioritize cost-cutting measures, from talent retention to flexible workspace, to gain maximum advantage from existing assets and expand fast and flexibly.
The latest 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 North and West Africa, business confidence sits at 124, above the global average of 113 points.
The report also indicated that North and West African businesses will focus on finding cost-effective services providers 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 West and North Africa, Thierry Vernet 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:
- 49% of companies in North and West Africa report revenue growth and 31% profit growth
- The top four efficiency outcomes for North and West Africa are:
- Cost effective services providers (58%)
- Better staff retention (48%)
- Higher return on investment on marketing and advertising (44%)
- More people redeployment (30%)
- 17% of companies plan to reduce fixed office space
The world’s leading CRM platform salesforce.com, relies on Regus business centres in half of its 26 locations worldwide. The company has seen phenomenal growth since it was founded in 1999 in San Francisco and has been ranked the World’s Most Innovative Company by Forbes Magazine for the Third Year in a Row. Larry Wolfert, Senior Director, global real estate, said: “Working with a single point of contact at Regus for our global workspace needs makes our global expansion manageable and efficient. We have also saved a lot of money avoiding the upfront capital expenditure associated with fitting out traditional office space.”
 Forbes Magazine, August 2013, The World’s Most Innovative Companies