Small businesses are concerned about what their future holds despite many reporting an increase in revenue over the past 12 months.

Research from accountancy software firm MYOB's latest Business Monitor Employer's Snapshot which surveyed more than 300 local small and medium-sized businesses shows many business operators still lack confidence in the economy.

More than 40 per cent of small businesses surveyed said they expected the economy to decline over the next 12 months in the survey. Only 25 per cent expect it to improve.

Thirty per cent of firms said their revenue had increased since June last year, while 28