According to the survey, 54 per cent of small and medium sized enterprises (SMEs) that are currently involved in foreign markets predict that they will expand their international activity over the next 12 months. This demonstrates a significantly more positive mood than during the second half of 2008 when a similar survey found that only 42 per cent of small business owners thought their international business would grow in the coming year.

Of the five cities surveyed - Vancouver, Edmonton, Calgary, Toronto and Montreal - businesses in Vancouver and Toronto showed the most optimism about their growth prospects with 71 per cent and 67 per cent respectively anticipating an upward trend.

The least optimistic were Montreal businesses of which only 30 per cent forecast that their international opportunities would grow in the coming year.

Miguel Barrieras, Senior Vice President, Business Banking, HSBC Bank Canada, said: "Canadian international business confidence is on the rise once again. We have always been an outwardly looking nation and this survey shows that Canadian businesses are working to make the most of their opportunities in foreign markets."

The survey asked small business owners who were doing business internationally whether they expected to expand or reduce that business in the following year. It found 41 per cent believed they would be expanding their international business by more than 10 per cent over the next 12 months. Thirteen per cent felt their overseas exposure would grow, but by less than 10 per cent, and 36 per cent felt it would stay the same.

This contrasts with a survey conducted in the fall of 2008 which found only 32 per cent anticipated growth of more than 10 per cent, 10 per cent felt it would grow by less than 10 per cent and 39 per cent felt their international transactions would stay the same.

In the recent survey, ten per cent of business owners felt their global business would be reduced. This was however a major improvement over the 2008 survey in which some 15 per cent felt it would decline.

The survey also looked at the regions in which SME's say they conduct business and found that most conducted transactions in multiple regions.