Indeed, the South Wales Chamber of Commerce found that 48 per cent of smaller firms in Newport, Swansea, Cardiff and Mid Wales believe they will increase their profits this year.
Furthermore, the study shows that nearly three-quarters have seen an increase in advanced custom, suggesting optimism is continuing to increase.
Graham Morgan, director at the South Wales Chamber of Commerce, explained that the figures are beginning to show what has been seen on the ground for many months.
"Of course, we recognise that the market remains difficult and not all businesses will have seen improvements. It is our experience that those businesses which trade only in Wales continue to struggle, while those that trade to the rest of the UK and abroad are more likely to hold their own," he added.
It comes as small businesses and other taxpayers are reminded that the deadline for the 2011-12 online self assessment tax return submission is January 31st.
Posted by Thomas Fletcher