'Over half' of small firms expect to grow

Research has suggested that small businesses are feeling increasingly confident about the future, with over half stating that they expect to grow over the course of the next 24 months.

The Finance Monitor survey questioned 5,000 SMEs in the second quarter of the year and found that 51 per cent expect to grow over the next 12 months. This is an increase on the 48 per cent that expressed this view in the previous quarter and the highest percentage recorded since the study began back in 2011.

BDRC Continental conducted the survey, which also found that more small companies have managed to grow in recent months. The percentage that said they have grown over the past year increased from 39 per cent in the first quarter of 2013, to 44 per cent in the second quarter.

Anthony Browne, chief executive of the British Bankers' Association, called the figures "encouraging", particularly noting that it is good to see SMEs using finance more.

Talking to IBTimes, he added: "The survey shows that business confidence in the economy remains the biggest obstacle to growth for British businesses but hopefully this will start to improve if the economic indicators continue to get better."