Just over 60% of small and medium-sized businesses (SMEs) are positive in their outlook for the next two years, according to a survey from MBH Corporation.
The data, collected from a nationwide assessment of 288 SME owners, found that 61% are positive about their business outlook, with 19% very positive and just 6% worried about trading conditions over the next two years.
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Meanwhile, around 59% of those surveyed said they were even more confident about their businesses than they are about the UK economy as a whole.
The renewed optimism was also feeding into planning for the months ahead, with the survey showing around 25% of the SMEs polled are planning to recruit new staff, while 24% want to expand and 21% are planning to invest in their infrastructure.
Around one in 10 are also planning to open new premises, while 11% are looking to overseas markets for potential returns by launching export drives.
However, the optimism followed a difficult 2020 for SMEs as the pandemic ravaged the economy, with MBH analysis showing 396,000, around 7% of UK firms, closing their doors over the year.
The survey also showed profitability remained a concern into the future, with around 28% expected to make a loss this year compared to 33% expecting to make a profit, 24% expecting breakeven and 15% being unsure.
This data was, however, better than research last year, MBH said, which found that just 19% of SMEs expected to make a profit and 39% predicting a loss.
“The imminent easing of lockdown restrictions and the success of the vaccination programme points to better times ahead for the SME sector which has been through a torrid time”, MBH chief executive Callum Laing said in a statement.
“It is encouraging to see such high levels of confidence among SME owners are translating into plans to recruit and launch new services demonstrating how adaptable and resilient the owners of smaller firms are. The tough experiences of the last year will prove very valuable for many and enable them to expand their firms in the future”, he added.