November 26: Sage Mid-Market Business Index: Business Confidence High Among Midsized American Businesses

IRVINE, Calif. (November 26, 2013) – American business confidence in the mid-market is the fifth highest in the world and comes in at 71.87 according to the first Sage Mid-Market Business Index. The Sage Mid-Market Business Index survey was conducted among 178 participants in the U.S. between July 31 and August 28, 2013 and is a part of the global Sage Business Index. Sage surveyed over 1,800 medium-sized businesses (defined as 100 or more employees) in 17 countries.

The first mid-market business index also found that American mid-market businesses are optimistic about their country’s economy, with that index coming in at 61.99. American mid-market businesses have less confidence in the global economy, with that result coming in at 55.03. All indexes are scored on a scale with zero as negative, 50 as neutral and 100 as positive.

“The first Sage Mid-Market Business Index shows again the strength of the mid-market and the potential for growth both domestically and globally.  Given the fragile state of the domestic economy, the mid-market looks like a bright spot, and it looks to be poised to continue to help bolster economic recovery in the U.S. We must be mindful of maintaining a positive business environment so that mid-market and all businesses can thrive,” said Joe Langner, executive vice president of mid-market solutions, Sage North America.

The Sage Mid-Market Business Index in the U.S. also questioned respondents about some of their attitudes towards risk taking, their biggest business challenges, and what can be done to help boost business confidence. Seeking out risk is common among 61 percent of respondents, while 24 percent were neutral, and only 16 percent consider themselves risk averse. Of those who consider themselves risk takers, 66 percent of them believe they need to take risks in order to succeed. Of those who consider themselves risk averse, 30 percent are so because they don’t like leaving things to chance, 26 percent don’t like the lack of control, another 15 percent don’t feel the need to take risks, and five percent don’t take risks because they have before without those risks paying off and with the remaining responding other. 

Winning new customers (22 percent), growing revenue (15 percent), and increasing profit (11 percent) are the core business priorities for those in the U.S. mid-market business community. When asked about the biggest challenges for their businesses, winning new customers (16 percent), attracting and retaining the right employees (16 percent) and customer loyalty (11 percent) top the list.

When asked what are the biggest challenges to conducting business in the U.S., most responded that there is too much bureaucracy and legislation (25 percent), followed by government’s response to economic challenges (17 percent), and lack of a skilled workforce from which to recruit (10 percent).

Summary of key global statistics:

• Mid-market business confidence index from a global perspective is 65.82.
• Fifty-five percent of global respondents consider themselves risk takers, 20 percent consider themselves neutral, and 25 percent consider themselves risk averse.
• Of the global respondents who consider themselves risk takers, sixty-seven percent believe they need to take risks in order to succeed.
• Winning new customers (19 percent), reducing operating costs (12 percent), and growing revenue (11 percent) are core business priorities.
• Too much government bureaucracy and legislation (22 percent), lack of skilled workforce from which to recruit (12 percent), and government handling of current economic challenges top the challenges to doing business (12 percent) in respective countries.

Note to editors: The research follows similar studies conducted in 2011 and 2012. All data is available on request.

About The Sage Group plc

Sage Group plc is a leading global provider of business management software to small and medium sized companies, creating greater freedom for them to succeed. Sage understands how and why each business is unique. We provide products and services that suit varying needs, are a pleasure to use, and are secure and efficient. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and entered the FTSE 100 in 1999. Sage has over 6 million customers and more than 13,380 employees in 24 countries covering the UK & Ireland, mainland Europe, North America, South Africa, Australia, Asia, and Brazil. For further information please visit: www.sage.com

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/Sage, and Twitter, Twitter.com/SageNAmerica.

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