Its latest Quarterly Survey of Small Business in Britain shows that 53 percent of businesses surveyed have taken on at least one new member of staff over the last two years.
And while the main reason for recruiting was to replace an employee who had left, almost half (48%) of the businesses were recruiting to cope with increased workload, and others were actively pursuing growth strategies.
Almost half (47%) of the new recruits were employed in core manufacturing or service delivery functions. The next most commonly-reported functions were marketing and customer services, which accounted for one third (33%).
The survey also found that outsourcing jobs is still relatively rare among small and medium-sized business, and the great majority who do outsource use local contractors based in the same city or region.
"Our findings provide some encouraging evidence on recent employment trends amongst small and medium-sized enterprises," said the survey's editor Dr Richard Blundel, senior lecturer in enterprise development in the OU Business School.
However both sales and employment performance are slightly down compared to the first quarter of 2013, he adds. Despite this, the businesses are optimistic about the future.
Sue Hayes, managing director of Barclays Business, commented: "This report shows how important small and medium enterprises are in creating local employment opportunities.
"They are a vital ingredient in the future growth of the UK economy and it is important that we give them the help and support to take on the people they need to flourish over the coming years."
The Quarterly Survey of Small Business in Britain is produced by the Open University Business School and sponsored by ACCA (Association of Chartered Certified Accountants) and Barclays Bank. You can download the latest survey here.
Posted 23 July 2013
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