Many more small and medium businesses are confident about the immediate future, according to new research, in further that the UK’s economy is improving.

Aviva, the UK’s biggest insurer, said its ‘SME Pulse’ survey of 500 smaller businesses reflected a recent spate of positive economic data and forecasts.

Looking ahead to the first six months of 2014, 52 per cent predicted either ‘strong’ or ‘improved’ growth in their business. That’s nearly three-times more than the same period in 2012, when 19 per cent said the same.

In a further sign of brewing entrepreneurial appetite, just eight per cent said they had lost their initial enthusiasm for running a business, compared with 32 per cent two years ago.

And only four per cent said they would be happy to return to work as an employee.

"It is a promising indicator of a return to business confidence to have so many businesses say they still really enjoy what they do,” said Robert Ledger at Aviva.

“Qualities like passion and commitment to run their own business, especially when trading is tough, really shows the strength that SMEs have, and need, to survive.”

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