The Guardian's Small Business Network revealed that only 16 per cent of the firms questioned said that their operations have witnessed a decline over the last 12 months.
However, there were still underlying fears in a number of areas, with half of those questioned saying that they feel the tough economy is continuing to provide a challenge for their enterprise.
Additionally, only nine per cent revealed their confidence in the government having a clear plan for small business growth, suggesting there is still plenty for ministers still to do.
But with 90 per cent of small businesses insisting their operations will be running in five years' time, owners are confident of success.
It comes only days after the Confederation of British Industry revealed that small firms witnessed a fall in production and order numbers over the last quarter.
Posted by Thomas Fletcher