According to the organisation's Small Business Index, businesses are feeling 18.8 points more confident in the final quarter of this year than they did in the final three months of last year.
Furthermore, while the findings revealed that growth will be slow in the early stages of 2013, this is expected to increase in the months afterwards.
John Walker, National Chairman of FSB, said that there is now "cautious optimism from the UK's small firms".
"There's no doubt that it is still a tough environment and the Autumn Statement highlighted that it's going to be tougher for longer," he explained.
"However, small firms want to get on, grow their business and invest. We urged the Chancellor to put small firms at the heart of the Autumn Statement and many of his plans will help - especially raising the tax free investment limits."
Meanwhile, the government is to help start-up shops by opening up parts of the government's own headquarters for new ventures.
Posted by Thomas Fletcher