Small and medium business confidence is on the rise -- reaching its highest point in five years

A survey by accounting software firm MYOB has found 46-percent of respondents expect the economy to improve over the next year.

Meanwhile, 28-percent of businesses have reported revenue growth over the past year, up from 25-percent the year before.

MYOB spokesperson Anna-Louise Hoffmann says external factors are playing a part.

She says falling inflation and lower interest rates will provide some cost relief.