In a recent statewide survey of 691 small to medium size businesses, respondents to the latest Michigan Future Business Index (MFBI) survey indicated that while inflation is the biggest challenge for small businesses, finding customers and acquiring talent are close behind. While reports of increased profits and new hires over the past six months have ticked up slightly since Q4 2023, reports of sales and wage increases are unchanged since then.
The semi-annual MFBI was commissioned by the Michigan Business Network. The survey is sponsored by Cinnaire and conducted by the Michigan-based market research firm ROI Insight. Mike Witt, Cinnaire SVP, Asset Management, recently joined Chris Holman, Michigan Business Network CEO, to share the survey results in a forum.
“The Michigan Future Business Index yields valuable insights for community leaders, policymakers and advocates, shedding light on the challenges faced by business owners in today’s economy,” said Mike Witt. “Through this survey, small business owners have the opportunity to contribute their unique perspective on Michigan’s economy, enabling decision-makers to effectively address the obstacles hindering business operations in the state. Cinnaire is proud to sponsor the MFBI survey and support the vital role small businesses play in fostering thriving communities.”
The survey found a majority of respondents are satisfied with the business economy, continuing the trend back into positive territory. While more than half of businesses say they have fully recovered from the pandemic, projections for sales, profits, hiring, and wages in the next six months are all now trending slightly downward. Optimism stems from several key factors including customer demand, business growth, quality talent, and loyal customers.
Chris Holman, who started the survey in 2003 and took it statewide in 2006, shared this about the latest findings. “The inflation has raised its ugly head to the number one challenge for businesses in the state of Michigan. The acquisition and retention of talent is a very close second. No businesses feel revenue will be flat for the next six months. They are not enthused about the potential of profit. I would remind everyone that this is an election year and business is traditionally a little more pessimistic and a little more cautious.”
Additional findings:
- Satisfaction with the economy has now been in positive territory in three consecutive surveys.
- While the MFBI shows growth in sales and profits over the last six months, respondents are more bearish for the next six months.
- While profit projections slump, so do plans for new hires. Nearly two-thirds of businesses will invest in training and promotion from within.
- Inflation is still a significant byproduct of the COVID-19 pandemic, impacting profits, hiring, wages, and investments. However, other pandemic challenges, such as supply chain issues, have dwindled.
- Nearly two-thirds of respondents believe Michigan is a great place to do business.
For more details, data and graphs covering the results of the latest MFBI, please click here.
About the Michigan Business Network
As the leading voice for small businesses in Michigan, the Michigan Business Network (MBN) believes the people making the decisions need to hear how your business is doing. MBN is an information provider seeking to help grow and developer Michigan’s economic community. https://www.michiganbusinessnetwork.com/
