Small and medium-sized enterprises (SMEs) are largely optimistic about their futures, according to new research.

A study by HSBC Bank and the Small Business Research Trust (SBRT) indicates that 45 per cent of SMEs expect their sales to grow, while 21 per cent predict higher investment.

Some 16 per cent believe that employment will increase, the figures reveal.

Simon Wainwright, head of business banking at HSBC, commented that the current economic situation provides plenty of challenges for SMEs.

"That they are continuing to invest and recruit more to grow their businesses shows great resilience and determination in the UK small business sector," he remarked.

"However, it is vital that small business owners continue to budget carefully and plan diligently for any future expenditure and changes in circumstances."

Preparing for the future could help guard against the effect of negative circumstances, such as the loss of an important staff member or an economic downturn in Britain, he added.

HSBC provides banking solutions for both individuals and companies.