Distribution & Wholesale Industry Small Business Confidence Increases Two Points Says Small Business Research Board Report; Study Indicates Businesses Experiencing “Good” Relationships with Lenders

BUFFALO GROVE, ILL. (March 9, 2009) – A decrease in confidence reported by distribution and wholesale companies during the fourth quarter of 2008 replaced the second quarter of 2008’s concerns about inflationary pressures, according to the latest Small Business Research Board (SBRB) report issued today.

The SBRB study indicated the Distribution & Wholesale Industry Small Business Confidence Index (D-SBCI) decreased to 34 during the fourth quarter of 2008, or by two points, from the 36 recorded during the second quarter of 2008. The fourth quarter 2008 report is the fifth wholesale and distribution industry confidence index issued by the SBRB. Declines in all three major categories comprising the confidence index contributed to the lower fourth quarter results.

Of the respondents, 39% said they believed the economy would improve over the next 12 months, which is four points higher than the 35% who expressed an improved economy to come during the second quarter of 2008. Adversely, 42% of the participants said they expected revenue increases of 10% or more during the coming 12 months. This is an eight point decrease from the 50% who said they expected higher revenues when polled during the second quarter of 2008.

The quarterly report indicated 83% of the responding businesses said they have been a customer or client of their principal lender for five years or more. 40% of those that have been with their bank for an extended period of time have reported their relationship is “good.” Within the next year, 25% will request to increase their lines of credit, 11% will request a decrease and 63% expect their lines of credit to remain the same. 37% find access to credit more difficult.

The current distribution and wholesale industry confidence index is two points lower than the 36 point index that was reported for all U.S. small businesses during the fourth quarter of 2008.

More than 500 small business owners participated in the nationwide poll.  

The universe of participants is developed from among small businesses across the United States. The SBRB study is a voluntary survey conducted quarterly. 

The Small Business Research Board ascertains and reports the opinions of small business owners and managers on a wide variety of topics related to their own businesses as well as national and international issues that may impact their operations. The SBRB conducts these studies for the benefit of small business owners and managers. The SBRB also provides opportunities for third parties to gain real time insight into the attitudes of small businesses nationwide through the independently conducted research. 
 
More information can be found at www.ipasbrb.net.

IPA is the largest privately held provider of management consulting services to small and medium-size businesses in North America. IPA, and its more than 1,800 professionals, offers a wide range of proven and innovative methodologies to help businesses grow and prosper regardless of the economic cycle. IPA either provides directly, or through its affiliated companies, a comprehensive array of business advisory services, tax and estate planning services or merger, acquisition and other financial advisory services in the United States and Canada. More information about IPA can be found at www.ipa-c.com.

# # #

© 2009 Small Business Research Board

For more information about this poll, results of previous studies or other matters related to the Small Business Research Board, please contact Jennifer Cumbee, (847) 495-6786.