Small business sentiment is improving as confidence in the business environment increases.

The latest survey by the Small Firms Association has shown that business confidence levels are up for the first part of this year, compared to the same time last year.

The findings show that four out of ten small firms say the outlook for their business is 'good' or 'very good' for the coming three months.

While 30% of respondents rate the current business situation in Ireland as poor or very poor, that figure represents a 20% drop on the same period last year.

Businesses are also forecasting a boost in profits with 31% expecting revenue to increase slightly with companies predicting a growth in the customer base by 41%.

Director of the SFA, Avine McNally, says there are increasing signs of stabilisation and positive business activity: