Eight out of ten small businesses expect to maintain or increase sales turnover in the first half of this year, according to data released by QBE, the specialist business insurer.

This is an increase from the 57% of small companies that had this expectation a year ago. However, the survey from QBE also revealed that 21%, of SMEs say they would find it difficult to survive if current economic conditions were to persist.

"Small to medium sized enterprises make up the bulk of British business and are crucial to the well-being of the economy. It is encouraging to see that they have weathered the storm well and are optimistic for 2010 but, as conditions improve, the focus will turn from survival to business development," said Terry Whittaker of QBE.