UK entrepreneurs 'more optimistic'

Half of British entrepreneurs believe that the UK's economic climate will improve in the coming year and most expect profits of their business to increase, a new report said today.

A study by Investec Bank showed that two out of five entrepreneurs believe they will launch a new company or products in the UK over the next 12 months.

High-risk areas identified by those surveyed included falling customer demand, government spending cuts, exchange rate volatility and the effects of the VAT increase.

Ed Cottrell, of Investec, said: "The findings from our index are encouraging, because much of the economic growth we are all hoping for will come from successful entrepreneurs.

"Many clearly feel optimistic about the future, and our findings reveal that 42% say that it is very likely that they will launch new companies and products in the UK over the next 12 months, compared to 26% who said this in December 2009.

"Given these growth plans, many of these entrepreneurs will hopefully pick up some of the job losses in the public sector.

"Some 68% of successful entrepreneurs interviewed plan to increase the number of people they employ, while only 6% expect this to fall."

More than 50 entrepreneurs were questioned for the report.