Michigan Small Business Growth Has Stalled, Trade Group CEO Says

Economic growth among Michigan's small businesses has stalled, Brian Calley, president and chief executive of the Small Business Association of Michigan, said on October 13, according to Michigan Public.

Calley said regulations, tariffs and high energy costs have squeezed owners from both sides. "So there's pressure for them to keep their prices down because their customers can't afford to pay more, but there's pressure with all their costs rising," he said.

Many owners would like to expand as a way to offset rising costs, Calley said, but the cost of growth now exceeds the cash flow or income that growth would generate, leaving them to wait or pass up opportunities.

Diesel prices have risen sharply following the U.S. and Israeli attacks on Iran, and the trade conflict with Canada has pushed up prices on goods and raw materials, an acute problem in Michigan, where cross-border trade is central to key industries, Michigan Public reported. Calley said the volume of new state, local and federal policies has made compliance difficult for small firms.

He called on the state Legislature to act, including allowing small businesses to organize health coverage as large employers do by self-insuring together. Calley also recommended exempting the state's smallest businesses from Michigan's paid sick time law.

This story was first reported by Michigan Public.