Bankwest-sponsored research into the views of senior managers at small to medium businesses has uncovered a vein of bullishness and some firm intentions to borrow more over the next few years.That's on the proviso that they can handle a range of "challenges to cash flow" - a phrase used often in the Bankwest report.While leaders of mid-sized businesses had "mixed" expectations about growth in the Australian economy over the next 12 months, 60 per cent of the 85 people surveyed expected the Australian economy to speed up in the next five years.Diversification through expansion of products, services and markets were the most common strategies cited by respondents in the Bankwest report. The biggest cash flow "challenge" in the next 12 months was expected to be increased operating costs (55 per cent of respondents). Other expected cash flow "challenges" were reduced revenue (40 per cent), losing a key customer (35 per cent) and new or increased competition (34 per cent). The proportions were roughly the same, even when respondents were asked about their views, looking five years out.Almost half the business leaders planned to maintain or increase their current level of borrowing over the year (43 per cent) and five years out (48 per cent).Respondents who considered their business to be the market leader were considerably more likely to take on risk when it came to borrowing, with close to one in four likely to borrow more in both the next 12 months and in the next five years (both 24 per cent). In comparison, only one in ten respondents who said their business was not the market leader intended to borrow more over the next 12 months and five years.