On the other hand, the findings show that confidence in
future business growth among SMEs within emerging markets continues to
increase, while levels in developed markets have dropped, according to HSBC’s
bi-annual SBCM. Saudi Arabia emerged as the global leader in terms of SME
business confidence, while overall Middle East respondents reported highest
levels of confidence in the survey.
The biggest positive shift in business confidence on a
regional level came from the Middle East and North Africa region (MENA) and on
a country level came from Saudi Arabia. With 59 percent of MENA SMEs expecting
their local economy to increase at a greater pace in the six months, confidence
remains strong and continues to grow within the region. The rise in oil prices
has contributed to the increase in business confidence in the Middle East, with
increases in wealth set to support private consumption and domestic demand. A
recent HSBC Middle East Gulf Business Confidence Index showed that 36 percent
of respondents saw increasing oil prices positively impacting their business.
Research findings show the number of SMEs across the globe
conducting international business activities is expected to expand from 29
percent to 40 percent by 2013. The increase is driven by domestic SMEs, 18
percent of which plan to become international by 2013. International SMEs are
demonstrating aggressive cross-border expansion plans with almost half (48
percent) intending to expand their international operations in the next two
years to increase revenue.
The decline in confidence within the developed markets
brought the overall global index down, while emerging markets indicated
sustained growth and continued to hold a positive local economic outlook with
almost half (43 percent) forecasting an increase in the growth of their local
economy over the next six months.
In the developed markets only 12 percent predicted an
increase in local economic growth over the next six months, while 26 percent
predicted a decrease. Increases in recruitment and capital expenditure remain
largely stable globally with 33 percent of emerging market SMEs planning to
increase their staffing versus 17 percent in developing markets and 48 percent
planning to inject more into investments over the next six months versus 27
percent developing markets.
