Q3 Small Business Research Board Retail Industry Key Issues Report:  More Small Retail Businesses Considering Expansion Next 12 – 24 Months Says Latest SBRB Report

NORTHFIELD, IL (November 7, 2007)  --  The percentage of owners and managers of small retail businesses considering expanding their operations during the next 12 to 24 months increased slightly during the third quarter of 2007, according to the latest Small Business Research Board (SBRB) study released here today.

Of the owners and managers responding to the nationwide quarterly SBRB poll co-sponsored by IPA, 32% said they plan to expand their businesses the next 12 to 24 months.  This was an increase of 1 point from the 31% who said during the second quarter that were planning to expand their businesses. 

Expansion at current locations and the addition of new locations were noted by 37% of the respondents intending to expand as their primary methods for growing their businesses.  The poll indicated that 22% of those small businesses considering expansion will add locations while 17% said they will expand at existing locations.  

The addition of new products was listed by 18% of those planning for future expansion while 16% said they would add new services and 14% said they would enhance their customer service capabilities.  

The addition of staff and staff training are viewed as the primary measures for improving productivity.  Adding staff ranked first among the options for enhancing business efficiency during the third quarter while training was second. These same owners also said they would add investments in new automation or technology (third), enhance existing automation or technology (fourth) and enhance employee incentive programs (fifth) as additional methods for improving their operating efficiencies.

 IPA, with more than 1,800 professionals, is the largest privately-held provider of management consulting services to small and medium-size businesses in North America.   IPA is based in Buffalo Grove, IL.

The Small Business Research Board previously reported that its Retail Industry Small Business Confidence Index (SBCI) was 44.66 during the third quarter.  It was the first time the SBRB issued an SBCI for the retail industry. The outlook for the general economy, revenue growth and hiring expectations are three key indicators used to determine the SBCI.

The overall SBCI during the third quarter for all US small businesses, by contrast, was 43 or a decline of three points from the prior period.  The historical SBRB SBCI high occurred during the first quarter of 2005 when the SBCI hit 52 points.  The historical low was during the third quarter of 2005 when the SBCI fell to 39.3 points.

More than 800 small businesses participated in the overall nationwide third quarter SBRB poll.

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

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.   The latest information about the Small Business Research Board can be found at www.ipasbrb.net.

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