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BUSINESS confidence is on the up among small firms, with uncertainty about the economy at its lowest level in almost seven years, a study has shown.

The latest quarterly SME Business Trends survey, released by the Irish Small and Medium Enterprises Association (ISME), shows improvements in 11 out of 12 economic indicators.

Economic uncertainty among small business owners is now at the lowest level since spring 2007, it found, though it continues to be the biggest concern for employers.

Mark Fielding, ISME chief executive, said small businesses are cautiously optimistic about the future as the country enters the post-bailout era.

But he said that while uncertainty about the economic environment has fallen, it still remains a considerable concern for many business owners.