According to new research by Orange, increasing number of small and medium-sized businesses will focus on flexible working next year.

The survey, which questioned 2,181 SMEs, found that flexible working and allowing employees to work from home was 'being considered' by 74 per cent of enterprises.

The main reason behind this new focus is a drive to create increased staff efficiency and motivation – something which can often be done by allowing staff to work more flexibly.

Martin Lyne, SME marketing director at Everything Everywhere, said, "It demonstrates a strong desire to drive a more efficient business, and is also a great way to help employees strike the right work/life balance."

Research published last week revealed that employees who work from home can actually be more productive than their office-based counterparts.

Alongside the desire to push flexible working, businesses also responded that they were 'feeling positive' about the upcoming year, with 76 per cent saying that they believed success was likely in 2011, either at the same level as this year or at a higher level.

More than 25 per cent of SMEs surveyed also said that they were planning to take on more employees next year.