The majority of small firms are confident about current and future prospects of their businesses.

Total Back Office Solutions can handle your recruitment agency timesheet management

The latest Business Factors Index published by Bibby Financial Services could offer some encouragement to those looking to set up a recruitment agency in the near future.

A poll conducted by the organisation found that despite business output declining by 12.4 points during the second quarter of 2010, the majority of small firms (72 per cent) remain optimistic about their current trading conditions.

One in six (17 per cent) small and medium-sized firms admitted that their business is either doing well as a result of actually benefiting from the recession, or that it is in the best shape ever.

This is an increase from ten per cent in the previous index and Edward Rimmer, UK chief executive at Bibby Financial Services, said it is encouraging to see optimism among UK business owners and managers despite economic momentum slowing down.

People setting up a recruitment company could outsource back office requirements, including invoice payments, timesheet management and payrolls in order to free up time to focus on business building.