Q4 Small Business Research Board Food & Beverage Industry Key Issues Report:
Food & Beverage Companies’ Economic Outlook Increases by 11 Points from the Second Quarter Says Latest SBRB Report 

BUFFALO GROVE, ILL. (March 9, 2009) – Owners and managers of small food and beverage businesses indicated, during the fourth quarter of 2008, that they expect the economy to improve and believe that over the next 12 months they will experience an increase in revenues and hiring expectations, according to the latest Small Business Research Board (SBRB) study released here today.

Of the owners and managers of food and beverage companies responding to the nationwide quarterly SBRB poll co-sponsored by IPA, 41% of the respondents reported an expected improvement in the general economy over the next 12 months, an increase of 13 points over the second quarter of 2008. 41% expect revenues to increase within the next year, an increase of three points over the second quarter of 2008. In regard to hiring practices, 37% of small business owners and managers responding plan to increase hiring. This is an increase of 15 points over the previously reported quarter.

The report also indicated 80% of the responding businesses said they have been a customer or client of their principal lender for five years or more. 37% of those that have been with their bank for an extended period of time have reported their relationship is “excellent.” Within the next year, 24% will request to increase their lines of credit, 16% will request a decrease and 60% expect their lines of credit to remain the same. 29% find access to credit more difficult, while 49% find access unchanged.

The SBRB previously reported that its Food & Beverage Industry Small Business Confidence Index (SBCI) decreased by two points to 40 during the fourth quarter of 2008. The responses of owners and managers of small food and beverage companies participating in the fourth quarter poll indicated an increase in confidence in all three indicators used to determine the SBCI, including the general economy, revenue growth and hiring expectations.

The Q4 2008 food and beverage SBCI (set at 40) is four points higher than the overall U.S. SBCI, but is 11 points higher than industry index of 29 registered during the second quarter of 2008.

The overall SBCI, during the fourth quarter of 2008, for all U.S. small businesses was 36, an increase of six points from the prior period. The historical SBRB SBCI high occurred during the first quarter of 2005 when the SBCI hit 52 points. The previous historical low was during the fourth quarter of 2007 when the SBCI fell to 33.67 points. 

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.

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© 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 Scott Wood, (847) 495-6786.