A statewide survey by the Michigan Economic Development Corporation identified five critical needs for small businesses, including better program coordination and access to capital, shaping future state investment decisions
Michigan's small business landscape is facing a pivotal moment as the Michigan Economic Development Corporation (MEDC) releases findings from its recent statewide survey. The results point to five pressing needs that will shape how state resources are directed in the coming year, with business owners and support organizations calling for immediate action on coordination, technical support, and access to funding.
According to the MEDC, the survey drew 90 detailed responses from 60 organizations, including lenders, technical assistance providers, industry associations, and business owners. The responses covered manufacturing, company growth, capital needs, and other operational challenges, providing a rare snapshot of what Michigan's small business ecosystem says it needs most right now.
Coordination and Navigation Top the List
The most urgent concern, cited by 75% of respondents, is the lack of coordination among existing business support programs. Rather than asking for new initiatives, stakeholders want better connectivity between program administrators, shared data systems, and support that follows a business throughout its lifecycle. Many described the current system as fragmented, with businesses often left to navigate a maze of referrals and disconnected services.
Technical assistance was nearly as prominent, with 73% of respondents emphasizing the need for hands-on guidance before, during, and after funding is provided. Respondents argued that capital and equipment investments are far more effective when paired with ongoing expert support, rather than being treated as standalone solutions.
Capital Gaps and Technology Adoption
Access to capital remains a significant barrier, especially for businesses that have outgrown microloans but do not yet qualify for traditional bank financing. This "missing middle" was identified by 44% of those focused on capital needs, highlighting a persistent gap in Michigan's small business funding landscape.
Technology adoption, particularly in manufacturing, also emerged as a key theme. While awareness of automation and digital tools is high, 41% of all respondents-and 85% within the manufacturing sector-said the real challenge is moving from pilot projects to full-scale implementation. This often requires workforce training and support for reshoring production, areas where many businesses feel under-resourced.
Succession Planning and Ownership Transitions
Succession and ownership transition issues were less common overall but dominated responses from second-stage companies. Preliminary estimates suggest that by April 2026, more than 83,000 Michigan firms employing about one million workers and generating $201 billion in revenue will face ownership transitions. Yet only 20-30% of businesses listed for sale actually complete a transfer, raising concerns about job stability and local economic continuity.
While the MEDC has not finalized investment decisions, these findings are already influencing how the agency plans to allocate resources for the next fiscal year. The agency says it will keep stakeholders updated as analysis continues and new funding opportunities become available.
What Happens Next
The MEDC is encouraging business owners and support organizations to continue sharing feedback as it refines its investment strategy. Those seeking immediate assistance are directed to their regional Small Business Support Hub for help navigating available resources.
The MEDC's survey process highlights the complexity of Michigan's small business environment and the need for targeted, practical solutions. As the state weighs its next steps, the clear message from the field is that better coordination, tailored technical support, and right-sized capital products are not just wish-list items-they are prerequisites for real growth and resilience in Michigan's business community.
For context, the MEDC is Michigan's lead agency for economic development, working with local partners to support business growth, job creation, and community investment. Its annual investment decisions affect thousands of businesses statewide, making these survey findings a critical input for future policy and funding priorities.
