by business editor Trevor Sturgess

The doom and gloom of recession may be giving way to a glimmer of optimism, according to a survey of small firms.

The Federation of Small Businesses in Kent and Medway has published its latest half-yearly barometer showing a rise in the number of members reporting improved prospects for the next 12 months.

More than 230 responses received between May 1 - 18 suggest a more positive feeling, with a reversal in the decline in business prospects and sales.

Sixteen per cent of small businesses reported improved prospects for the coming 12 months, up from only four per cent in November but still below what it was in May last year and half the level in 2007.

Sales over the past 12 months have also recovered slightly, with 54 per cent of respondents recording the same or better turnover than a year ago.

Higher operating costs remain the top concern, with 52 per cent complaining that they are keeping profits below last year’s level.

Roger House, chairman of the 7,000-member FSB Kent and Medway, said: "Entrepreneurs need to be pro-active to get more business and our Business Barometer indicates small businesses in Kent and Medway are working hard to overcome the current financial crisis."