I can't really comment about MS Publisher because I have not used it personally.
I have, however, created a similar service for the local businesses in my area. What is your goal and outcome for this website? Is it simply to provide a service to these businesses as a means of helping out? Or is there a business initiative behind it. As someone who invested a lot of time and money into a similar service, I can tell you that you have to have a unique spin and multiple plans for monetization if you want to turn this into a business.
Also, from a technical perspective, if you truly want this to be a long lasting initiative, I would highly recommend building your website with a database integration. I don't believe publisher enables this easily (if at all). So you will probably want to consider using Wordpress as your development platform. It automatically includes a database and allows you to archive the businesses by category, name, title, etc...
If you would like to see an example of my business directory, please PM me.
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