Most small businesses believe it will be another two years before the UK makes a full economic recovery, according to a new survey.

Business insurance company QBE has found that 58% of smaller firms think an economic revival is two years away, a significant jump from the 47% that predicted this when asked six months ago.

The research also found that over half (52%) of businesses said they would experience difficulties if current conditions were to persist. However, six months ago this figure was 71%.

Some businesses have also benefited from the downturn, with 44% saying they are more competitive thanks to the recession and 78% expecting to either maintain or increase sales turnover in the second half of 2010.

Commenting on the results, Terry Whittaker, managing director of QEB European Operations, said: “Small to medium sized enterprises form a crucial section of UK business and it is important that their collective voice is heard on the future of our economy, because they have a key role to play in its recovery.”