More than 90 per cent of the UK's entrepreneurial businesses expect to grow their revenues in the next 12 months, according to the results of Deloitte's annual Entrepreneurship UK report.

The survey of nearly 350 entrepreneurs reveals that more than half (56 per cent) expect to generate at least ten per cent revenue growth over the coming year.  Thirty-six per cent forecast growth over the next 12 months to be a maximum of ten per cent, while just eight per cent project zero or negative growth, down from 20 per cent in 2009.

In the longer term, nine out of ten entrepreneurs forecast double-digit revenue growth for their business over the next three years, with four out of ten projecting growth to exceed 50 per cent.

Raising and generating cash remains a high priority for entrepreneurs, with 46 per cent of respondents revealing that they are actively stockpiling and retaining cash within their business. A fifth (22 per cent) have less cash than at the same time last year, but have enough to get by, whilst a further fifth are monitoring their cash position daily.

Ashley Hollinshead, partner and head of entrepreneurial business at Deloitte in Birmingham, said: "Last year, cost reduction was seen as the quickest and simplest way to bolster the balance sheet. It was a priority for entrepreneurs meaning the expansion of their business - the driver of revenue growth - took a back seat. However, this year the vast majority of entrepreneurs expect positive growth over the next year, suggesting that some of this cash will soon be invested in growth strategies.

"Owners of larger companies are predicting higher growth than smaller ones, indicating an ongoing lack of access to finance for earlier stage businesses."

According to the Deloitte survey, 43 per cent of respondents said the key indicator for growth in their business is revenue, followed by profitability (33 per cent). 

Over the next 12 months, entrepreneurs will be growing their businesses primarily through increased investment and organic growth (25 per cent), the development of new products and services (22 per cent) and entry into new markets (16 per cent). Over the next three years, however, 23 per cent of entrepreneurs say entry into new markets will be the preferred route to grow their business.

The UK, Western Europe and North America remain the preferred markets for growth for 84 per cent of entrepreneurs. Just 1.5 per cent consider China as a prospect for the growth of their business, 4.5 per cent the Asia-Pacific region and less than one per cent for India and Brazil.

Mr Hollinshead said: "Foreign expansion into potentially untapped markets, especially for those sectors more naturally suited to global expansion such as telecommunications and technology, remains down the list of short-term priorities. Entrepreneurs are maintaining a more cautious stance, avoiding any potentially costly drains on company resources in turbulent markets. The larger entrepreneurial businesses are more likely to attempt to enter these markets as the effects of unsuccessful attempts can be absorbed more easily and they also tend to have more sufficient resources available."

Keith Willey, entrepreneurship expert and associate professor at London Business School, said: "Entrepreneurs are never happy standing still, so for many this year must feel especially frustrating. A year ago, people seemed to be looking for some kind of turning point that would allow them to make necessary decisions to either go for growth or prepare for worse conditions. Instead it seems uncertainty remains for many.

"It's likely that entrepreneurs will continue to 'proceed with caution' and are not going to get caught up in any sudden waves of optimism or indeed pessimism. Everything we know about the entrepreneurial sector though tells us that they will be in the vanguard as and when conditions improve and many will draw guidance from the views of their peers."