Confidence among UK entrepreneurs is returning, with 75% believing that demand for goods and services is either rising or stabilising, according to a report from accountancy and business advisory firm Tenon.

A quarter of the 300 business owners polled said that they expect demand to increase by at least 10% over the next quarter and around 50% expect demand to remain at the same level.

Male entrepreneurs are more positive than their female counterparts, with 29% compared to 16% expecting a rally in demand in the forthcoming year.

"These results personify the resilience of the British entrepreneur and the flexibility of their business models. Just six months on from the start of the worst recession since the war, there are clear indications that business confidence is growing," said Andy Raynor, chief executive of Tenon.