Michigan Small Business Survey Reveals Five Key Needs

The Michigan Economic Development Corporation (MEDC) has released findings from a small business Request for Information. The survey, which gathered 90 responses from lenders, technical assistance providers, and business owners, will shape state investment decisions for the upcoming fiscal year.

Five major themes emerged from the analysis, with ecosystem coordination cited as the most frequent concern.

Ecosystem Coordination and Navigation

Improving connectivity among support programs was the most-mentioned issue, appearing in 75% of all responses. According to the MEDC report, respondents did not ask for new programs but rather for better coordination between existing ones. Stakeholders called for shared intake systems, warm handoffs between service providers, and support that follows a business throughout its entire lifecycle instead of ending at a referral.

Wraparound Technical Assistance

Closely following coordination, the need for hands-on guidance was highlighted in 73% of responses. The report states that technical assistance was mentioned almost as often as the need for capital itself. Respondents emphasized that funding and equipment are more effective when paired with expert guidance before, during, and after deployment.

Capital Access and Right-Sized Products

Within the specific category of Capital Needs, 44% of respondents named financing gaps as a top priority. They described a "missing middle" where a company's financing requirements are too large for microloans but too small or unconventional for standard bank loans.

Industry 4.0 and Technology Adoption

This theme appeared in 41% of all responses and was particularly dominant among small and medium manufacturers, with an 85% reach within that category. The MEDC report notes the primary challenge is not a lack of awareness about automation and digital tools. Instead, the hurdle is scaling successful pilot projects into full production, a process often linked to workforce training and reshoring objectives.

Succession and Ownership Transition

While this theme appeared in 32% of overall responses, it dominated the Second-Stage Company Growth category, reaching 72% of respondents in that group. The MEDC report attributes a sense of urgency to preliminary estimates from April 2026. Those estimates suggest over 83,000 Michigan firms are approaching an ownership transition. These businesses employ roughly one million workers and generate about $201 billion in revenue. The report cautions that historically, only 20 to 30 percent of businesses listed for sale ultimately complete a transfer.

The MEDC clarified that the RFI findings do not represent finalized investment decisions but provide a snapshot of stakeholder input. The agency stated it will keep partners updated as the analysis develops and funding opportunities become available for bid.