Q1 Small Business Research Board Retail Industry Key Issues Report: More Small Retail Businesses Expect an Improved Economy and Revenues in the Next 12 Months Says Latest SBRB Report

BUFFALO GROVE, ILL (May 23, 2008) – The percentage of owners and managers of small retail businesses expecting an improved economy and higher revenues during the next 12 months increased slightly during the first quarter of 2008, 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, 40% said they expect an improved economy, an increase of nine points over the fourth quarter, 2007 report.  56% expect their revenues to increase.  This was a slight increase of five points compared to those reporting during the fourth quarter of 2007.  Concerning the total number of employees, 41% of the respondents expect their statistics in 2008 to increase from 2007.  21% thought they would have fewer employees in the coming year.

Meanwhile, the quarterly report said 39% of businesses have raised prices in response to increased fuel costs.  For those adjusting to an increase in fuel prices, 26% have reduced business travel, 21% reported reducing other costs and 20% have committed to new vehicles with better miles per gallon efficiency.  Ordering materials from sources closer to their operations was the fifth-mentioned possibility for offsetting costs.

The Small Business Research Board currently reports that its Retail Industry Small Business Confidence Index (R-SBCI) is set at 43.66.  During the fourth quarter of 2007 it was set at 35, and was the second time the SBRB issued an SBCI for the retail industry. The outlook for the general economy, revenue growth and hiring expectations are the three key indicators used to determine the SBCI.

The overall SBCI, during the first quarter of 2008, for all U.S. small businesses was 43.67, an increase of 10 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 fourth quarter of 2007 when the SBCI fell to 33.67 points.

More than 1,000 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.

© 2008 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.