OWNERS and managers of small and medium businesses in Yorkshire expect to achieve annual growth of around 11 per cent, new figures show.

Confidence among UK SME owners about five-year growth prospects has hit a record high, according to the annual business growth survey by Santander Corporate & Commercial bank.

A fifth of SME bosses said their businesses had never been in better shape, compared with 13 per cent a year earlier.

Nationally, businesses with an annual turnover of up to £20 million are predicting average turnover growth of 33 per cent a year – the highest level since the survey began three years ago.

The most optimistic outlook is in the South East where companies are looking to grow by 54 per cent a year.

There is also a strong outlook for employment, with 30 per cent of companies stating that retaining existing staff was an ‘immediate priority’ – up from 19 per cent in 2013. This was rated the second most important priority after ensuring the survival of their business . One in eight respondents said they were focused on hiring new staff.

There was a 17 per cent rise in the number of firms looking to expand through acquisitions, while 29 per cent of business owners said they were looking to grow their business organically.