A new survey of small and mid-size firms has found that a clear majority expect revenue growth in 2014 and a third are expecting growth over 10 percent.

The 2013 Macquarie Relationship Banking Legal Best Practice Benchmarking Report is a follow up study to a similar survey conducted in 2011. The survey was based on responses from 134 small and mid-size firms. Small firms were defined as firms with less than A$4 million in gross fee revenue annually and mid-size firms were defined as firms with revenues between A$4 million and A$20 million.

While only 31 percent of respondents thought that the industry outlook for 2014 would be an improvement on 2014 and 22 percent thought it would be worse, the survey found that firms had performed well this year and were generally bullish about their revenue and profitability next year. The key findings were:

MID-SIZE FIRMS - FY2013

74 percent of mid-size firms increased their gross fee revenue

72 of mid-size firms increased their profits and 29 percent increased profits by over 20 percent

The average profit for mid-sized firms was A$1.4 million

SMALL FIRMS - FY2013

57 percent of small firms increased gross fee revenue

64 percent of small firms increased their profits and 29 percent increased them by over 20 percent

The average profit for small firms was $285,800

NATIONALLY - FY2014

66 percent of firms nationally expected revenue growth in FY2014; 33 percent of these expected revenue growth at over 10 percent.  Fifty eight percent of firms expected to increase profits; 35 percent expected to do so by over 10 percent.

WA was the most optimistic state, with 86 percent of firms expecting revenue growth. The equivalent figures were 64 percent in NSW; 70 percent in VIC, 59 percent in QLD and 53 percent in SA.