Newest "State of the Union" Study for Small and Mid-Size Business Released by AllBusiness.com

Business Wire, Dec 21, 2006

Search for Talent Tops List of SMB Leaders' Concerns

SAN FRANCISCO, Calif. -- AllBusiness.com, Inc. (www.allbusiness.com), a leading online resource for small and mid-size businesses (SMBs), today announced the results of its fourth quarter 2006 "SMB State of the Union Study" and SMB Barometer. SMBs are generally optimistic about their business outlook for the coming year but are concerned about hiring and retaining quality employees.

The SMB State of the Union study was conducted by market research firm Frank N. Magid Associates on behalf of AllBusiness.com and included responses from nearly 1,000 SMB leaders across the country. According to the Small Business Association, small businesses represent 99.7% of all employers, currently employ half of the private workforce (50.1%) and provide approximately 75% of the new jobs added to the economy.

Finding and Retaining Talent Tops Greatest Concerns

Expected staffing increases have rebounded, with 50 percent of respondents saying they plan to hire more employees compared to 44 percent reporting similar plans in the second quarter of this year. As a result, hiring and retaining top talent has taken the lead as the greatest concern of SMB leaders, surpassing managing cash flow, the cost of employee health insurance and managing business growth. Conversely, fuel costs, which 45 percent of respondents ranked as their top concern this time last year, has dropped significantly - with only 23 percent of respondents ranking it at as their top concern now.

SMB Barometer Indicators Remain Positive and Growth Oriented

Launched near the end of 2005, AllBusiness.com's SMB Barometer provides a numerical figure that measures overall SMB health by reflecting the combined values of five components, including staffing plans, business real estate trends, business branch plans, technology investment and overall business outlook. The barometer reading is currently at 63, one point higher than was reported during the second quarter of this year, yet five points lower than this time last year, signaling continued optimism albeit without the bullish perspective exhibited in the fourth quarter of 2005.

"We have seen the end of the decline in optimism we uncovered earlier this year, with 75 percent of SMB leaders expressing optimism for the upcoming year," says Peter Horan, CEO of AllBusiness.com. "SMB leaders are planning to add staff, increase their technology investments, move to larger spaces and increase branches in '07."

About the "SMB State of the Union" Study

Frank N. Magid Associates prepared the "SMB State of the Union Study" for AllBusiness.com surveying a national sample of 909 for-profit SMB leaders from October 5 through November 8, 2006. The survey included 457 participants who were externally selected and 603 who were from an AllBusiness.com registered user list. Participants were 18 years or older and were the owner, partner, president, CEO, COO or vice president at companies with no more than 499 employees.

About AllBusiness.com

AllBusiness.com is a leading online resource for small and mid-size businesses (SMBs). The Company operates one of the Web's premier business sites, providing practical information and services for business professionals and growing businesses. The site provides SMBs with more than a million business articles. Subject matter includes industry information, practical how-to advice, case studies, daily news updates and dozens of buyer's guides to help SMB leaders make smart buying decisions. The site also offers more than 250 how-to videos, 450 legal forms and agreements, and provides the expertise of more than 50 expert blogger/advisors from key industries and professions sharing their experience and valuable lessons. In addition to its flagship Web site, the Company's content can be accessed by its content syndication program, RSS feeds and e-mail newsletters. www.allbusiness.com