Among key findings of the phone and online survey of nearly 900 company representatives included:

• 70% of respondents are satisfied with the economy;

• 50% said sales are up, compared to 35% in late 2011;

• 44% of the companies will hire more workers in 2016;

• 42% expect to increase wages in 2016;

• 44% of companies reported rising wages as compared to 15% in 2011;

• 32% of companies hired people in 2015, compared to 11% in 2011;

• 38% expect an improved bottom line over the next six months – a new high for the survey.

“Keeping and attracting good employees remains the greatest challenge to small business owners,” the report said. “Twenty-two percent cite labor market challenges as their biggest concern, up from 16% in the June survey.”

A third of respondents said they've got postings for jobs that aren't being filled because the right employee isn't out there.

“Clearly, there is tremendous optimism about the business climate in Michigan and the opportunities for success, Mike Britt, president of Accident Fund Insurance Company of America, said. “We should all feel good about the improvements we've seen in Michigan over the past few years. However, we can't lose sight of the challenges we face in attracting and retaining top employees.”

However, while recruiting and retention were cited as employers' No. 1 concern, No. 2 was managing growth — not a bad thing, given the Rustbelt's long decline following the collapse of the U.S. steel and auto industries.

“Four in ten plan to expand their product or service offerings over the coming year and over two-thirds believe Michigan is a great market to find and retain customers. It's a great time to own or work for a small business in Michigan,” the report said.