June 26, 2008 (LANSING, MICHIGAN) – Despite some dissatisfaction with the state’s current economy, Michigan’s small- to mid-sized business owners see a light on the horizon. Many are even making plans for moderate hiring, small wage increases and product additions through the next quarter.

According to the semi-annual Future Business Index, a study funded by Lansing-based Accident Fund Insurance Company, economic optimism is gaining strength for Michigan’s small- and mid-sized businesses for the first time since the study commenced in 2006.

“Small businesses are an important core for Accident Fund’s business model, but they also are the backbone of job creation across the state and the nation,” said Keith Adkins, Vice President of Marketing at Accident Fund. “As a Michigan-based, national carrier of business insurance, we are pleased to see that small-business owners are optimistic and forging ahead.”

While 78 percent of business owners and managers expressed some concerns regarding the economy as it affects their businesses, some bright spots can be found. This is especially true in the outlook for pay increases, employee hiring, and introduction of new products and services.

Highlights of the study show that of those surveyed:

• Twenty-four percent plan to increase employee wages in the next quarter, while none say they will seek wage concessions.
• Nineteen percent will hire more employees in the next quarter, and another 69 percent say they’ll maintain their workforce at the current level; only 3 percent say they will definitely lay employees off.
• Twenty-five percent plan to introduce a new product or service in the next quarter.

“The entrepreneurial spirit we have in Michigan is fantastic,” says Chris Holman, small business advocate for the state of Michigan. “Each year, more and more people make the choice to work for themselves or join a start-up company, and that helps our state thrive. I’ve been working with small businesses for many years and continue to see this group expand. It’s very exciting, and good for the state and the mid-Michigan area.”


Accident Fund’s Future Business Index is produced twice annually. Working in conjunction with EPIC ▪ MRA, 600 to 700 small- to mid-sized businesses across Michigan are asked about their business outlook. The details are calculated and distributed throughout Michigan. The next survey will occur in November 2008. The survey margin of error is ±4.0 percent.

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