Q2 2023 Michigan Future Business Index: Michigan’s Small Businesses Report Inflation Eating Into Their Profits
August 3, 2023
In a recent statewide survey of 615 small to medium-sized businesses, respondents to the latest Michigan Future Business Index (MFBI) survey indicated even though the impacts of the weakening economy have emerged on the list of top challenges to doing business in Michigan in the past six months, overall concerns for a deepening recession or continued inflation appears to be softening. While the impacts of wage inflation remain high, they appear to have crested.
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. Josh Ghena, Cinnaire Senior Vice President, of Equity Business Funding, recently joined Chris Holman, Michigan Business Network CEO, to share the survey results in a forum.
“The results of the Michigan Future Business Index provide data for community leaders, policymakers, and advocates to understand the challenges business owners face in today’s economy,” said Josh Ghena. “The survey provides an opportunity for small business owners to share their unique perspective on Michigan’s economy to help decision-makers address the challenges to doing business in Michigan. Small businesses are a cornerstone of healthy communities and Cinnaire is proud to support the vital role they play by sponsoring the MFBI survey.”
The survey found sales and profits both saw a decline over the past six months, with profit increases hitting a record low for the MFBI. That said, overall satisfaction with the business economy has improved significantly since last year, with half now saying they are satisfied with the economy. A majority of respondents now say they’ve fully recovered from the COVID-19 pandemic and comments to open-end questions indicate that small business owners are becoming bullish on Michigan’s future economy.
Chris Holman, who started the survey in 2003 and took it statewide in 2006, shared this about the latest findings. “The latest MFBI, reproves something that we see every time. The resilience, the tenacity, and the positive attitude of Michigan businesses about tomorrow. It’s one of the major reasons we should all be proud to be doing business in Michigan. Though they have some complaints, Michigan businesses are bullish on just that… being Michigan businesses.”
· As job creators are pulling back on hiring, they are focusing on finding success within their existing teams.
· Many respondents say supply chain challenges are becoming less significant.
· Michigan is a great place to have a small business – 66% of respondents believe Michigan remains a pretty good to excellent market for their business
For more details, data, and graphs covering the results of the latest MFBI, please click here.