The survey results show a sharp increase in confidence compared with the survey carried out in December last year.
Polson Higgs partner Michael Turner said that 70% of respondents expected their businesses to grow over the next two years compared with 55% in December.
"Of these, nearly two-thirds expect that growth to be in excess of 5% and in many cases, greater than 10%."
South Island businesses felt the business downturn later than their North Island counterparts.
However, although it was later affecting South Island companies, a comparison of the December and July surveys showed businesses had moved from a short-term approach to the economic environment to a more structured approach, he said.
In December, companies were looking at raising price margins in what was a difficult market as well as securing trained staff - a reflection of the tight labour market.
By July, 80% of all firms surveyed were reviewing internal structures and there was a greater emphasis on securing lower-cost finance.
The emphasis on staff had decreased and there was also a lowering in the number of companies looking to reduce their overall operations, Mr Turner said.
The softening in the labour market also had a marked effect on the way businesses were handling their staff and recruitment processes.
In December, the primary driver in attracting and retaining staff was in the area of financial rewards, along with the offer of flexible working arrangements and career opportunities.
By July, the greater emphasis in the workplace had moved to providing a clear culture with its associated values.
The type of question that companies were wrestling with in July was "If I lay off staff, how will that affect the culture of the organisation?".
Mr Turner said that question would not have featured 10 years ago.
Training and development stayed at about the same level while the other growth area was in offering opportunities to gain a diverse range of experiences.
Another product of a soft market was employees being keen to broaden their range of skills, Mr Turner said.
"The new work environment has also brought about marked changes in employee behaviour.
There is a greater willingness to innovate and explore business opportunities, there is a willingness to work co-operatively with other colleagues, a definite motivation to perform and a willingness to offer discretionary effort."
The other key findings from the research were around investment behaviour and environmental issues, he said.
Plant and equipment purchases and research and development spending were the two main casualties of the recession.
Spending on both those areas had been down in the past 12 months and would remain down over the next year.
Sales and marketing, IT infrastructure and staff training were likely to have an increased investment, albeit small, over the next 12 months, Mr Turner said.
As economic conditions deteriorated in late 2008, there was a significant drop in the proportion of businesses reporting that environmental issues were significant to their business.
As a degree of optimism returned, environmental issues had assumed greater significance.
"The main motivations driving environmental issues are enhancing brand reputation, reducing costs and responding to customer demand. In essence, companies are adopting pragmatic responses to external or internal pressures rather than initiating changes simply because they are seen as intrinsically worthwhile."
