Several business areas may struggle with the hike in minimum wage including housekeeping services, laundry and linen services and especially grocery stores which only operate on a one percent profit margin.
Many in the grocery business fear that bumping up the minimum wage will make it much harder to hire students, because stores simply can't afford to pay almost $7 an hour to an entry level worker with no experience.
Other small business owners say they may have no choice but to charge more for their product or service.
"We'll probably have to raise our prices a little bit," said Mark Geovjian, owner of Melting Moments in East Lansing.
Governor Granholm is expected to sign the legislation. The increase in minimum wage to $6.95 an hour would start in October.