In a recent statewide survey of 536 small to medium-sized businesses, respondents to the latest Michigan Future Business Index (MFBI) survey indicated inflation is the number one challenge to doing business in Michigan, knocking acquiring talent out of the top spot for the first time in nearly a decade.

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. Brett Oumedian, Cinnaire Chief Financial Officer, joined Chris Holman, Michigan Business Network CEO, to share the survey results in a forum today. 

“The results of the Michigan Future Business Index survey serves as a powerful tool, providing data for policymakers, community leaders, and advocates to understand challenges businesses are facing,” said Brett Oumedian. “Small businesses play a vital role in healthy communities, bringing an important economic, social, and cultural value. We are pleased to join the Michigan Business Network to show our support for small businesses and share the results of the survey.” 

The survey found that nearly three-quarters of small business owners consider inflation a significant concern right now. Talent acquisition and retention challenges again stem from simply getting bodies in the door, as opposed to the challenge of finding qualified talent in previous years. Additionally, while many businesses say they’ve recovered from the COVID-19 pandemic, more say the recovery will take longer than expected given the most recent stressors on small businesses. 

Chris Holman, who started the survey in 2003 and took it statewide in 2006, shared this about the latest findings. “Among the many challenges businesses are facing, inflation is at the top of the list, with 52% of businesses surveyed identifying inflation as their top challenge. While many businesses are struggling to find reasons for optimism in the current environment, the survey shows seven in ten still believe Michigan is a great place to do business.” 

Additional findings: 

• Satisfaction with the economy continues to slump since its rebound one year ago. 
• Even as employers continue to increase wages at record levels, they remain perplexed as to how to attract talent. 
• The rebound of sales and profits in Q4 2021 has been quelled, while optimism for future sales and profits continues to significantly diminish, as those expecting decreased future profits nearly equal those expecting increases. 
• Silver Lining: seven in ten still believe Michigan is a great place to do business and believe the tax system is fair.