Small and new businesses are coping with the recession better than larger firms, according to research by online accounting service by FreeAgent Central.

Over 65% of new businesses reported that their business income has stayed the same throughout the recession and that SMEs are the most optimistic about their firm's future, with 36% of them describing their outlook for the future as ‘very optimistic'.

"Smaller businesses are the engine room of the economy and these results are very reassuring. If these new businesses are optimistic and doing good business, this should have a great impact on our overall economy," said Ed Molyneux, CEO of FreeAgent Central.