Sage predicts gloomy year ahead for its small business customers

The overall confidence of business owners is declining as they predict an "uncertain" outlook for the future, according to software company Sage.

Research by the business showed that although entrepreneurial spirit and culture are shown to be alive and well, legislation and funding are proving significant challenges to businesses.

Sage's chief executive Guy Berruyer said: "As we look forward, there are clearly significant macro-economic concerns which may impact SMEs, particularly in the Eurozone, and our customers are telling us through our Sage Business Index that they see the outlook remaining uncertain."

The business and accountancy software firm, which has a strong reliance on the business of small and medium-sized firms, yesterday reported an 11% pre-tax profit growth to £330.8m and a customer increase of 261,000 for the year to 30 September.But Berruyer said although the results showed "concrete progress", he was "concerned" about next year. 

He added: "Just three years ago, we could see a trend down. One year ago, we could see a positive trend. Right now the trends are viable, and other than in Spain we are not seeing businesses contract because of the economic downturn. However, there is a blurred view."

Berruyer claimed however that Sage will continue to develop new business solutions with the company positioned "well to deal with the ups and downs of the economic cycle".