The Federation of Small Businesses has said more small firms are expected to see rapid or moderate expansion in the next 12 months.
The FSB revealed a quarter of indies said they were looking to invest in 2014 and wanting to take on more staff.
“Confidence has been in positive territory for a full year, giving economic growth solid foundations moving into 2014,” said John Allen, national chairman of the FSB.
“Small firms are creating more jobs and investing in their businesses and there are encouraging results behind the headline figures, with promising trends evident across the main areas of expansion, investment and employment.
“However a sustained recovery is perhaps some way off as the worldwide economy remains uncertain.”