Small Businesses Want Local Government Support in the Form of Tax Breaks, Fewer Regulations

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Tue Jun 16, 2009 12:31pm EDT

Latest Ouch Point Study from Opinion Research Corporation Uncovers Significant
Variations in Small Business Owners Perspectives by Region
PRINCETON, N.J.--(Business Wire)--
While the majority of small businesses would recommend their geographic location
to others, they also say their local government could do much more to support
them. Seven out of 10 businesses responding to the latest Ouch Point survey from
Opinion Research Corporation, an infoGROUP company (NASDAQ: IUSA), say tax
breaks would be the most effective measure, followed by "cutting red tape." 

"The majority of small businesses are looking to their local governments to help
them succeed, with tax cuts, fewer regulations and better marketing," said
Rebecca Elmore-Yalch, Senior Vice President, Opinion Research Corporation. "At
the same time, most municipalities are strapped, with declining revenues and
increasing demand for services. One solution may be to focus on reducing red
tape to support businesses without adding new strains to local budgets. These
businesses just want to see that local government is on their side." 

Survey results pointed to a few lower-cost options. When asked what government
action would be most helpful, keeping businesses better informed topped the list
(56 percent).Reducing the number of regulations followed closely (55 percent). 

Despite the challenges many businesses are facing today, most are satisfied with
their location. Nearly three-quarters (72 percent) would recommend their city to
other businesses. The greatest support came from the largest companies ($750,000
to $2+ million in sales), with backing from four out of five respondents. When
asked to identify the primary business advantage of their location, local
customer loyalty and location were at the top of the list, with 22 percent each.


Interesting trends also emerged by comparing responses across the four regions
of the United States. Among the highlights:

* Business owners in the Midwest cite customer loyalty (31 percent) as the most
important advantage, compared to just 16 percent of those in the South and 19
percent in the West. 
* One-third of business owners in the West cite location as the primary
advantage, compared to just 16 percent in the Midwest and 19 percent in the
Northeast. 
* 62 percent of business owners in the Northeast think that their local
government could do a better job of promoting their town, compared to 44 percent
of those in the West. 
* The South is the only region in which a majority of business owners (53
percent) indicated that improving the quality of the work force would be most
effective. By comparison, only 38 percent of those in the West agree. 
* Nearly a third (30 percent) of business owners in the West say that they would
definitely not or probably not recommend their town to someone looking to start
or relocate a business. By contrast, more than three-quarters (78 percent) of
those in the South would probably or definitely recommend their town. 
* In the Midwest, 75 percent rank tax breaks as their highest priority, compared
to the West at 64 percent.

"Local governments can do a lot to facilitate entrepreneurial growth by helping
to create conditions and policies that make it easier for small businesses to
succeed," added Yalch. 

About Opinion Research Corporation

Opinion Research Corporation (ORC) is a leading global market research firm with
offices across the U.S., Europe and Asia Pacific region. ORC offers the unique
ability to integrate primary and secondary research, competitive intelligence
and expert insight to address the business challenges of its clients worldwide.
The company has been a partner of CNN on the CNN/Opinion Research Corporation
poll since 2006. To learn more about ORC, visit www.opinionresearch.com. 

About The Ouch Point Series

ORC`s Ouch Point series examines the tolerance thresholds of Americans in common
scenarios they face daily in both their professional and personal lives. For
more information, visit www.orc-ouchpoint.com. 

About infoGROUP

infoGROUP (NASDAQ: IUSA) is the leading provider of data and interactive
resources that enables targeted sales, effective marketing and insightful
research solutions. Our information powers innovative tools and insight for
businesses to efficiently reach current and future customers through multiple
channels, including the world`s most dominant and powerful Internet search
engines and GPS navigation systems. infoGROUP headquarters are located at 5711
S. 86th Circle, Omaha, NE 68127. For more information, call (402) 593-4500 or
visit www.infogroup.com. 

Statements in this announcement other than historical data and information
constitute forward looking statements that involve risks and uncertainties that
could cause actual results to differ materially from those stated or implied by
such forward-looking statements. The potential risks and uncertainties include,
but are not limited to, recent changes in senior management, the successful
integration of recent and future acquisitions, fluctuations in operating
results, failure to successfully carry out our Internet strategy or to grow our
Internet revenue, effects of leverage, changes in technology and increased
competition. More information about potential factors that could affect the
company's business and financial results is included in the company's filings
with the Securities and Exchange Commission. 





CJP Communications
Caroline Harris, 212-279-3115 ext. 222
or
ORC USA
Carolyn Werbler, 609-452-5258
or
infoGROUP
Kelly Loontjer, 402-596-7574
Director of External Communications
E-mail: kelly.loontjer@infogroup.com

Copyright Business Wire 2009

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