Hi there,
Well if all you are going to be doing is listing business names and addresses with possibly integration to Google Maps and the like then EE will definitely get you headed in a really good direction.
There are literally about 10 ways you could tackle this but the basics of the site would probably be able to be built right out of the box using the standard EE weblog tags etc…
You could start getting into some nice features such as tagging, favourites and ratings if you liked but you could always add those in at a later date.
Just to say that if I am understanding what you want to do correctly then yes EE would definitely be able to handle all of this and a whole heap more very very easily.
I find with these kinds of projects, well actually all projects that if I sit down first and jot down exactly what I want the site to be able to do and then doodle some very very rough wire-frames of pages for the site then you can get a really good idea of what you will need from the system.
Perhaps I would suggest doing this and then post back here when you have more of an exact idea of what you require and then you can let us know and we can help you out with the best way of achieving what you need but from what I know of the Yellow Pages here in the UK (hate their site by the way - and it’s WAAAY too overpriced to advertise on) you could definitely beat what their site does hands down using EE.
Hope some of that has helped and don’t forget if you need any more advice then just let us know exactly what it is that you would like to achieve with the site and we can answer your questions even deeper.
Best wishes,
Mark