A new study has revealed that 37% of small and medium sized enterprises (SMEs) are more optimistic than they were a year ago. The annual Optimism Index from AXA Business Insurance also found that 81% are currently upbeat about the general state of their business, with many expecting growth over the next 12 months.
More than a third (38%) of small businesses believe they will make more profit this year than last year, with the same amount expecting similar profits to last year. To reflect this, 37% plan to take on new employees this year and 53% plan to invest in new equipment or other resources.
The future continues to look bright for small businesses, as 58% believe 2014 will be an even better year than 2013.
Darrell Sansom, managing director at AXA Business Insurance, said “We all know that the number of SMEs in the UK is rising rapidly and they continue to form the core of British business. We also know that many small businesses have really struggled in the recent economic downturn so it is extremely encouraging to see that the level of optimism among SMEs is rising.”