Nearly half of all SMEs intend to increase their training budget for 2004, according to new research.

The Business Achiever Report by learndirect also found that nearly all - 97% - of employers believed that training had a direct impact on business performance.

There were indications of a feel-good factor spreading through business: 60% of SMEs believed that their business was performing better than 12 months ago, and 43% felt that the economic outlook was getting brighter.

And e-learning looks set to increase according to the survey, with almost twice as many managers recognising the benefits of e-learning compared to last year - 45% in 2003 compared to 23% in 2002.

However, there was still room for improvement, one quarter of SMEs admitted that they didn’t spend enough on training to maintain and develop their businesses.