Despite rising taxes and a predicted exodus to more business-friendly locations, it would seem that the number of entrepreneurs considering quitting the UK is actually in sharp decline, according to new research from Investec Specialist Private Bank.

Having surveyed UK’s entrepreneurial community, Investec found that only 4 per cent are considering dropping their UK residency – compared to 16 per cent in November of last year. Furthermore, the survey also found that 88 per cent of respondents would definitely be retaining their UK residency, rising from 71 per cent in December 2009.

Those surveyed were also pretty optimistic about the UK market, despite the parlous state of its public finances: 42 per cent of respondents said it is very likely that they will launch new companies and products in the UK over the next 12 months, compared to 26 per cent who said this in December 2009. Supporting this, over half the participants in the survey – 54 per cent – predict revenues from their UK businesses to increase by 10 per cent or more over the coming year. A further 26 per cent expect their profitability to increase “dramatically” over the period.

The survey also struck an upbeat note for the UK’s employment prospects, with 68 per cent of those polled saying they expected to increase their employee headcount and only 6 per cent predicting cutbacks.