Small and medium business owners are more optimistic about conditions in the financial year ahead and are planning more spending on equipment and technology, the latest big bank SME surveys reveal.Commonwealth Bank surveyed businesses with turnover of less than A$1 million and found that 41 per cent had made it a priority to invest in machinery, equipment and technology in the new financial year."Small business operators are looking to invest back in their businesses," said CBA executive general manager small business, Clive van Horen.NAB's latest monthly business survey found that business conditions were above the long-term average, with service industries leading the way.NAB chief economist Alan Oster said companies indicated an increase in planned capital expenditure."Firms are more likely to go out and invest or hire more workers if they see that their spare capacity is shrinking," Oster said.The latest Westpac Melbourne Institute SME Index shows a decline in confidence in the sector, driven by weaker profits.However, the survey found that SMEs were less negative in their assessment of future conditions.Westpac general manager of SME Julie Rynski said SMEs were increasingly looking to technology to reduce the burden of business administration.