OPTIMISM among entrepreneurs in their own businesses is soaring, according to figures released yesterday.

A survey of small business economic confidence found that more than 80 per cent of entrepreneurs believe their business will be better off or remain the same in the next 12 months - up 19 per cent since March.

Despite growing optimism, the Bank of Scotland business banking quarterly report noted that more than half of those surveyed have found it more difficult to run their business over the past five years.

While 59 per cent of small businesses remain confident in the UK economy, the UK-wide survey found net optimism had fallen by 12 per cent since March.

Just over a third believed that general economic conditions will worsen in the next 12 months.

The survey also found that only 29 per cent of small businesses are expecting to invest more in their business this year - a fall of 22 per cent since March.

Kevin Gillett, head of Bank of Scotland business banking, said: "The overwhelming confidence amongst small business entrepreneurs in the future performance of their business is greatly encouraging.

"Whilst a third of small businesses may be less confident about future general economic conditions, the fact that the engine room of the economy is still recruiting, investing and performing well paints a strong picture."