Food & Beverage Companies’ Economic Outlook Increases by 11 Points From the Second Quarter
BUFFALO GROVE, IL - 03/09/09— 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
More than 500 small business owners participated in the nationwide
The universe of participants is developed from among small businesses
across the United States. The SBRB study is a voluntary survey
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 http://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
Copyright 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.
Small Business Research Board