First SBRB poll reported on a regional basis.

Western U.S. small businesses most confident about future; small businesses in South/Southeast least confident.

Costs of energy, health care and materials greatest concerns for all owners/ managers regardless of location. Increasing revenue, decreasing expenses common goals for 2007.

Owners and managers of small businesses in the western states are by far the most confident about prospects for the next 12 months while the near term forecast for the southern and southeastern states is far less confident, according to another International Profit Associates Small Business Research Board (IPA SBRB) study.

The most recent IPA SBRB national study produced a 45.9 IPA Small Business Confidence Index (IPA SBCI) for the Western U.S. as compared to an IPA SBCI of 38.2 for the South and Southeastern US. The overall IPA SBCI for all small businesses in the US is 42.7 for the same reporting period.

The poll also reported that small businesses in the Northeastern US had an IPA SBCI of 43.47 while the Midwest was at 42.2.

This is the first time that results for the IPA SBRB poll were reported on a regional basis.

The key ingredients for determining the confidence index are attitudes about the direction of the economy, revenue predictions and hiring plans.

Despite the variance in confidence, small business owners were largely in agreement that the most significant issues they are now facing include contending with energy expenses and the continuing increases in the costs of materials as well as health care benefits. The priorities for 2007 are increasing revenue and decreasing expense.

The bullish attitude of small business in the Western US is driven by predictions for revenue growth and increased hiring. More than 63% of the respondents in the west said they believe revenue will be higher in the next 12 months, with 43% indicating it will be higher by 10% or more. Concurrently, 35.5% of these businesses said they will increase hiring in 2007.

Conversely, predictions by businesses in the south and southeast were the most bearish. Their outlook on the economy was the least positive, with only 35.1% saying that they felt it would be better over the next 12 months and slightly less than 57% indicating they expect revenue increases. Only 23.5% said they plan on increasing hiring.

"We know there are strengths in the small business sector and we are hearing about predictions for growth through 2007. However, the most recent poll — and specifically the regional breakouts — give all of us a clearer picture about the diversity in attitudes. We now have a benchmark from which to move forward and begin determining critical changes within the regions," said Gregg Steinberg, President of International Profit Associates, the largest privately-held provider of management consulting and professional services to small and medium-size businesses in North America.

"While the overall national IPA SBCI was 42.7, it showed a boost in confidence of 3.4 points from the 39.3 index reported at the outset of the third quarter," said Steinberg.

"As we have seen from previous years’ polls, end of the year exuberance requires that small businesses be pro-active to transfer optimism into reality."