Sage Business Index: Canadian Businesses Show Optimism About Domestic
Economic Outlook, Pessimism About Global Outlook
RICHMOND, BC -- (Marketwire) -- 10/24/12 -- Sage, a leading
provider of business management software and services to more than 6
million small and midsized businesses worldwide including 500,000 in
Canada, announced today the results of its biannual Sage Business
Index survey. The Sage Business Index gathered the opinions of 718
Canadian business owners and is part of a multicountry survey
conducted in September 2012.
The Sage Business Index survey indicated that Canadian businesses are
optimistic about their prospects for the next six months with an
index score of 61.07, down slightly when compared to the survey score
in the spring of 2012, which was 63.65 (indices are based on a scale
where zero to 50 is negative and 50 to 100 is positive). When asked
if the Canadian economy had improved or declined over the past six
months, the sentiment was positive with an index score of 53.82,
which was down slightly from 54.62 in the spring Sage Business Index.
While Canadian businesses are confident about their own prospects and
those for the country overall, they are increasingly pessimistic
about the global economy. The global confidence index score was
44.44, representing a slight decrease from the 45.53 index score in
the spring Sage Business Index.
"The Sage Business Index findings reflect a dichotomy of positive
sentiment many Canadian businesses have about the future of their own
companies and the domestic economy, coupled with the concern that
many have about the global markets," said Nancy Harris, vice
president and general manager of Sage 50 Accounting -- Canadian
Edition. "With businesses worldwide continuing to face economy
challenges, the optimism that Canadian businesses have about their
own prospects can be a good indicator of our domestic economy moving
When asked about the most favourable aspects of doing business in
Canada, 35 per cent of respondents agreed that the business culture
and entrepreneurial spirit is most favourable, followed by good
infrastructure (27 per cent), domestic market (27 per cent) and a
skilled workforce from which to recruit (26 per cent). When asked
whether their government provides s
ufficient support and advice for
businesses, 53 per cent responded no, 27 per cent responded yes and
the rest responded that they do not know. The top three things
business owners recommend the Canadian government do to support
business confidence include reduce business bureaucracy (16 per
cent), reduce business taxes (15 per cent) and increase skills
development and education (12 per cent).
Respondents cited government business bureaucracy and legislation (41
per cent) as the least favourable aspect of doing business in Canada.
Thirty-seven per cent cited tax rates for businesses as the
second-least favourable aspect of doing business in Canada followed
by the government handling of economic challenges (23 per cent).
When asked to specify the most burdensome parts of government
bureaucracy, 40 per cent cited tax law, 16 per cent cited
employee/labor law and 12 per cent cited environmental regulations as
the most onerous aspects. This is a notable change from the spring of
2012, in which tax law, licensing and public sector contracts were
named the top-three most burdensome aspects of government
About The Sage Business Index
The Sage Business Index polled 10,861
small and medium-sized businesses across 15 countries -- U.S.,
Canada, Germany, Austria, Switzerland, France, U.K., Ireland, Spain,
Portugal, Poland, South Africa, Malaysia, Singapore and Brazil over a
two-week period in September 2012. Businesses were asked a range of
questions regarding such issues as business confidence and outlook,
how they feel about the global and local economies and what
challenges they currently face.
Sage is a leading global supplier of business management
software and services for small and midsized businesses. The Sage
Group plc, formed in 1981, was floated on the London Stock Exchange
in 1989 and now employs more than 12,600 people and supports more
than 6 million customers worldwide. For more information about Sage
in North America, please visit the company website at NA.Sage.com.
Follow Sage North America on Facebook, Facebook.com/SageNorthAmerica,
and Twitter, Twitter.com/SageNAmerica.
Copyright2012 Sage Software, Inc. All rights reserved. Sage, the Sage
logos, and the Sage product and service names mentioned herein are
registered trademarks or trademarks of Sage Software, Inc. or its
affiliated entities. All other trademarks are the property of their
Sage North America
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949-502-7750 ext. 218
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