Kiki, For what it's worth, here's my two cents: I've built and acquired businesses in both of these states. Both a great places to live and work and your choices will really depend on a bunch of things...your particular business, which area in which state, your lifestyle, etc. I would start by taking an honest look at your business first. Although a surf shop wouldn't have much competition in Michigan, there's an obvious reason for it (not that there aren't any good surf shops there...Third Coast S.S. in New Buffalo rocks), but if you feel that your business can work either place, it should come down to economics and your quality of life (yes, life after work...what a concept). Sadly, one thing that many entrepreneurs often ignore, especially when first starting out, is their own quality of life. For many people, the point of owning your own business in the first place is to follow our bliss and do something that will be both rewarding and satisfying to us. So try not to underestimate it. Economically...yeah, both areas have been hit pretty hard by the recession, but I feel their best days are still ahead of them and it will take entrepreneurs, like yourself, to help make them great again. Anyway, I hope that helps in some small way and best of luck to you! Regards, Tony O