Small businesses could be experiencing a “tentative” recovery despite broader economic uncertainty, according to a new quarterly report from asset-based lender Venture Finance.

The research reveals average turnover for small businesses rose by 16.2% between the end of 2009 and Q2 2011, signalling a return to growth for the small business sector.

Previous research revealed a deep decline in turnover during the recession of 10.5% between 2007 and the end of 2009.

Peter Ewen, managing director of Venture Finance and chairman of the International Factors Group, says: “This is just what the economy needs. While tentative in some respects, small businesses have worked very hard since 2009 and have enjoyed increasing success as a result.”