| IPA
Small Business Research Board Study finds small businesses plan to beef
up hiring, invest in improvements to fuel growth BUFFALO GROVE, IL
(February 9, 2005) - Small businesses are preparing for a year of
improvement in 2005, with 70% of the respondents participating in the
latest International Profit Associates Small Business Research Board
(IPA SBRB) poll indicating they expect revenues to be better than last
year. Nearly 25% of the small businesses responding to the nationwide
IPA SBRB poll said they expect their 2005 revenue to be significantly
ahead of 2004.
Many of the businesses responding to the national poll say they plan
to increase hiring and capital investment to support anticipated revenue
growth.
More than four in five small businesses said they would meet or
exceed revenues this year compared to last year. Breaking down their
responses, 47% said revenues will increase slightly and 24% indicated
revenues will increase significantly. Another 12% said revenues will
remain the same. Significant growth indicates an increase of 10% or more
over the previous year. This closely parallels an IPA SBRB study from
July 2004 when 67% of respondents said they expected revenues to
increase during the remainder of last year and about 20% said revenues
would remain constant.
Small business owners plan to support this growth by hiring more
staff in 2005. About 90% of those questioned said they would be
maintaining or increasing the size of their staff this year. Of those,
42% said they would increase hiring in 2005. This represents a 16.5%
increase compared to an August 2004 IPA SBRB study when 36% said they
would increase hiring for the remainder of last year.
When asked if they would invest more for business improvements this
year, 43% said they would, while 40% indicated they would invest the
same as 2004. Only 15% said they would invest less.
Small business is optimistic about the general economy. Asked about
the outlook for the economy for the rest of 2005, more than half (53%)
said it would be better than last year and 35% indicated it would remain
the same. Only 10% felt the economy would be worse than last year.
"Small business owners and managers have continuing optimism and
appear willing to open their corporate wallets to tangibly support their
beliefs," said Gregg Steinberg, President of International Profit
Associates, the largest privately-held provider of management consulting
services to small and medium-size businesses in North America. "Small
businesses that have positioned themselves can take advantage of the
opportunities ahead. Those who aren’t prepared risk being left behind."
The International Profit Associates Small Business Research Board
ascertains 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.
Participants in the poll provide feedback on significant issues and
allow for real-time insight into the state of small businesses
nationwide. The universe of participants is developed from among small
businesses across the United States. More than 175 small businesses
owners and senior managers participated in this IPA SBRB poll. The IPA
SBRB study is a voluntary survey conducted via phone, email and fax. The
poll was structured and supervised through an independent resource.
International Profit Associates,
Inc. ( 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 offer 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-iba.com.
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