The majority of small businesses are now confident enough to start investing in their businesses again, according to a study.

The majority of small businesses are now confident enough to start investing in their businesses again, according to a study.

Some 58 per cent of small companies say they are now investing money in an attempt to grow, finds a survey by Freelancer.co.uk.

However, 61 per cent of the businesses were refused a loan from a bank and will be using their own money to invest.

Just over two fifths (43 per cent) will use their savings, while 19 per cent will borrow money from friends and family.

While businesses want to invest, they are wary about taking on new staff. More than a third (34 per cent) say they would now rather spend money on marketing, while 43 per cent note they would now invest in improving their ability to trade online, saying that it was now easier to sell products over the internet.  

Matt Barrie, CEO of Freelancer.co.uk says, 'The Olympics may have given the UK economy a shot in the arm, but this survey shows that small businesses believe that growth is now sustainable.

'Small businesses are not only confident about the future, but they already seeing signs that consumers are confident too. More small businesses are hiring freelancers online, confident that their investment will pay off.'

See also: Double digit growth for SMEs