The majority of small businesses in the UK believe that it will be two years before the country makes a full economic recovery, according to data released by business insurer QBE.

The survey showed that 58% of small and medium-sized businesses predict a two year wait before Britain sees an economic revival, an increase from 47% of firms that predicted this six months ago.

Of the businesses surveyed, over half said they would experience difficulties if the current conditions were to persist and 84% claimed they would not hire any more staff this year.

However, some businesses have benefited from the downturn, with 44% saying they are more competitive thanks to the recession and almost 80% expecting to either maintain or increase sales turnover in the second half of 2010.

“Small to medium-sized enterprises form a crucial section of UK business and it is important that their collective voice is heard on the future of our economy, because they have a key role to play in its recovery,” said Terry Whittaker, managing director of QEB European Operations.