LANSING, Mich – Michigan’s small business owners are in a bind. They appreciate the original intent and need for the state-mandated Stay Home, Stay Safe orders that were put in place to stop the spread of COVID-19 in Michigan, but they feel trapped by the uncertainty of what may come next. Respondents to the latest MFBI are clearly concerned about COVID-19 and the toll it has taken on Michiganders, but they feel certain that they will have plans in place and a responsibility to keep their customers and employees safe when they reopen.
Michigan business has enthusiasm about recovery and growth opportunities during one of the roughest economic periods in history shows the resiliency of Michigan’s small businesses. They have taken a significant hit, with sales, profits and cash flow hitting record lows; but surprisingly, more than six in ten (65%) believe their business will fully recover within the next year. However, they do have concerns about potential political games being played in our nation’s and state’s capitals and feel their voices are largely going unheard by policymakers. These are some conclusions from our data analysis. Following are some of the key takeaways from the survey:
- Only eleven percent (11%) are satisfied with the economy in Michigan, which is a new all-time record low for the MFBI survey.
- Nearly eight in ten (79%) said they were in pretty good or excellent shape before the pandemic, but nearly the same percentage (76%) say they are now in poor or not so good shape.
- Given those results, it is not surprising that small business leaders are uncertain about their future, yet they remain hopeful. While forty-four (44%) say they are pessimistic about getting back to normal, nearly the same percentage (39%) are optimistic.
“We have been pleased to sponsor the MFBI since 2006,” said Al Gileczek, president of Accident Fund Insurance Company of America and CompWest Insurance. “The Spring 2020 survey may be one of the most critical MFBI reports as it details how small businesses are reacting to the multitude of challenges they are facing as a result of COVID-19. We believe this information will be useful to all businesses as they prepare to successfully operate during the remainder of 2020 and beyond.”
Michigan Business Network's page concerning MFBI, may be found here.
About the Survey
The Michigan Future Business Index (MFBI) is commissioned semi-annually by the Accident Fund Insurance Company of America, presented by the Michigan Business Network, and conducted by ROI Insight. It surveys owners of small- to mid-sized businesses in Michigan and provides business leaders a forum to offer their perspectives and opinions on doing business in Michigan, the overall business climate in the state, and various issues in the news. This edition of the MFBI was significantly redesigned to capture the experiences and expectations of Michigan’s small business community during the COVID-19 pandemic.
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