The climate for small to medium-sized business in Australia is showing tentative signs of recovery, according to MYOB's 2010 business monitor survey.

The report found that 74% of businesses reported revenue levels at the same (39%) or higher levels (35%) than a year ago. However, with 22% of businesses saying their revenue had fallen it is clear the effects of the GFC have not receded completely.

The survey, which presents the findings obtained from 1000 small businesses (no larger than 199 employees) across a range of industries, also found that more medium and small businesses (41%) achieved greater revenue growth in the 12 months to August 2010 compared to micro small business (37%) owners and sole traders (32%). In another small sign of the resilience of the Australian economy almost half of businesses (49%) indicated they have more work than usual in the pipeline over the next three months.

Responding to these findings, Tim Reed, CEO, MYOB said, "These results clearly indicate that the engine room of the Australian economy has survived the GFC and is now picking up speed."

However, Reed also identified that the survey did not paint a great picture for micro businesses (1-4 employees) and sole traders, with these companies revealing lower confidence and sales levels.

Speaking to SmartCompany, Reed stated, "As we went from medium to small to micro to sole traders, most of the metrics declined."

The business monitor survey found that cash-flow is the number one obstacle for business owners, with 32% of those surveyed saying cash flow will put pressure on their business in the next 12 months. This was the highest of 17 potential business pressure points measured.

While nearly half of all businesses owners are expecting revenue to increase in the next twelve months, the fact that the confidence levels of the smallest-sized businesses are at relatively low levels illustrates that many Australian firms are still cautious about the future.