UK business owners are among the most optimistic worldwide about their local economy, finds international research.

UK business owners are among the most optimistic worldwide about their local economy, finds international research.

According to the Sage Business Index, on a global level, business owners’ confidence in their local economies fell nearly five points, from 47.26 in March 2012 to 42.47 presently.

However, in the UK, business owners’ confidence in their local market actually grew from 44.91 to 45.44.

Furthermore, the 1,350 UK respondents are among the most optimistic about their individual business’ prospects over the last six months, recording the highest index score since the Business Index began in 2011 and overtaking Germany for the first time.  

With the UK predicted to move out of recession, the study has revealed that the majority of UK business owners changed to meet the challenges of the current economic climate.

Some 81 per cent of UK business owners believe that they have successfully adapted – second only to businesses in Switzerland (85 per cent).

Interestingly, 80 per cent of businesses in Ireland, whose economy experienced one of the most aggressive budgets in 2009, believe that they had adapted to the challenges of the current economic climate.

Two thirds of businesses in Europe (67 per cent) say that the Eurozone crisis has had an impact on their business.  In the UK, just over half of firms (51 per cent) noted an impact on their business, compared with 90 per cent of companies in Spain and 93 per cent of companies in Portugal. 

When asked about the future of the Eurozone, just 11 per cent of UK businesses predict that it would remain unchanged – compared with more than one in four (28 per cent) owners in Ireland, who are most confident of business continuing as usual in Europe.   

Brendan Flattery, CEO of Sage UK and Ireland says, 'While it remains an incredibly challenging environment for businesses around the globe, the fact that UK business confidence levels have overtaken those in Europe’s largest economy is a significant milestone.

'It remains to be seen whether the UK is technically out of recession, but with over two thirds of respondents reporting solid revenue performance ahead of what is the most profitable time of year for many, the signs are encouraging.'  

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