Small Business Association of Michigan
Feb. 13, 2024
Michiganders who own and operate small businesses have seen their optimism fall when asked about the prospects of their business over the next six months, the Small Business Association of Michigan (SBAM) says, after surveying more than 400 members. Fifty percent of small business owners surveyed say they’re somewhat or very optimistic about their prospects over the next six months, down from 57% when asked the same question a year ago. That figure rises to 66% when asked about long-term survival of their business, suggesting that entrepreneurs expect conditions to improve beyond six months. Pessimism when looking out long term registered at 20%, but grew to 28% when looking at the next six months of doing business in Michigan.
“Small business owners tend to be optimistic people. This survey suggests that while they are experiencing many challenges today, most expect improved conditions in the future,” said Brian Calley, President and Chief Executive Officer of SBAM. “Inflation, availability of labor, and the economy remain top concerns for small businesses. Their biggest concerns center around cost pressures and underscore the strong opposition small businesses have expressed in recent surveys against new, costly government mandates.”
Twenty-three percent of those asked said the economy generally is the biggest problem they’re facing, closely followed by inflation at 21% and availability of labor at 19%.
More than half of small businesses report that new restrictions from the U.S. Department of Labor restricting independent contractors will have a substantial or moderate impact on their business.
Regarding policymaking in Lansing, as lawmakers consider the development of a research and development tax credit, about one-third of small businesses say they would benefit from it.
Looking forward, 26% of small businesses report they’re already starting to use Artificial Intelligence (AI) in areas such as marketing, data analytics, virtual assistants, and business operations. Development of those tools could be hampered, however, as 44% of small business owners say they’re preparing for a possible recession by cutting expenses.
Of the small business owners surveyed, 55% have 1-10 employees, 31% have between 11-50, and 15% have 51 or more. Full results.
RELATED: View Key Statistics Highlighting the Detroit Region’s Economic Well-Being
