OREANDA-NEWS. January 9, 2013. Tenacious entrepreneurs are confident about trading conditions as they look to scale up in 2013. Nearly half (48%) of the business owners who set up shop in the last two years are looking to expand their business operations in 2013, according to Aviva’s bi-annual SME Pulse.

Spurred by the buoyant national mood of the Jubilympics year, SMEs are feeling optimistic about the New Year. Aviva’s SME Pulse reveals twice as many SMEs (65%) expect average to strong sales in the first half of 2013, compared to just 32% in the same period last year. Firms with 11-25 employees are most optimistic out of all SMEs with nearly three-quarters (74%) expecting average to strong sales in the first half of the year.

The report by Aviva, the UK’s largest insurer, reveals that nearly twice as many SMEs (30%) diversified their business in the past six months to maintain business profitability compared to 17% during the same time in 2011. Almost one in four (23%) questioned are planning to continue diversifying in the first six months of 2013 to keep their businesses healthy.

This renewed optimism has also translated into more ambitious targets as 42% of businesses set themselves new goals and objectives at the start of the year. Nearly half (49%) of SME owners felt they had met or achieved their goals last year with a similar number (43%) predicting more ambitious business plans in 2013.

Overall, more than a third (37%) are looking to grow their businesses, motivated by wanting to boost revenues (80%), to benefit from economies of scale (36%) and generally feeling that it is the right time to grow (27%). In addition, the Pulse found a strong contingent of SMEs (53%) who are happy with the current size of their business.

David Bruce, commercial product manager at Aviva, comments: “It’s promising to see such positive attitudes for the start of the year across the SME market. There is a growing focus and importance on the sector in driving economic recovery and this optimism is further substantiated by the number of SMEs predicting ambitious growth plans for 2013 These are the very businesses that are vital and lie at the very heart of Britain's economic recovery.

“The Jubilympics year has certainly driven a renewed sense of optimism in the UK, and SMEs are carrying this positivity into 2013. The size and nature of small to medium-sized businesses allow owners to be more flexible and nimble in responding to market conditions and to make those business decisions that can have a great impact on success.”