Governor Whitmer announces new data showing record small business growth
Michigan has seen the fastest small business job growth in 23 years and added 170,000 jobs in the first three quarters
LANSING, Mich. — Today, Governor Gretchen Whitmer highlighted new data showing Michigan’s economic start-up continues as the state’s small businesses experience tremendous growth and expansion. In the first three quarters of 2021 alone, small businesses with fewer than 50 employees added nearly 170,000 jobs, the fastest start to small business job growth in 23 years, according to the Michigan Bureau. of Labor Market Information. The state also saw an explosion of entrepreneurs and business owners starting new businesses in 2021, with 150,000 new small business applications filed to start businesses, up 59% from 2019.
“Small businesses are the backbone of Michigan’s economy and are the anchors of communities across the state. In tough times, they have shown courage and innovation to keep making things happen for their customers and employees,” said Governor Gretchen Whitmer. “Recent data shows that entrepreneurs are motivated, starting tens of thousands of businesses and creating nearly 170,000 jobs. While the numbers are encouraging, we need to build on this momentum by making investments to retain and recruit more workers, expand our operations and attract additional investment. Together, let’s continue to make things happen for Michigan’s thriving small business community.
Michigan is home to 902,000 small businesses, with 1.9 million small business employees, representing 48.3% of Michigan’s workers. 99.6% of Michigan businesses are defined as small businesses with less than 500 employees.
“The entrepreneurial spirit is thriving in Michigan,” said JD Collins, CEO of the Michigan Small Business Development Center, a statewide resource for small businesses. “Our consultants know a record number of start-ups and companies in generational transition. We need continued support from programs like the MI New Economy Plan to ensure Michigan is the best place to start and grow a business.
Governor Whitmer remains committed to supporting small businesses as Michigan continues to grow its economy. Recently, the governor introduced a $2.1 billion proposal to grow Michigan’s middle class, support small businesses, and invest in communities. As Michigan’s economy grows, buoyed by a multi-billion dollar surplus and growing momentum, Governor Whitmer’s proposals will address the underlying issues facing small businesses and make the bold investments needed to create economic prosperity for all.
- Governor Whitmer introduced her MI New Economy, a $2.1 billion plan to grow Michigan’s middle class, support small businesses and invest in communities.
- $500 million to build on the Michigan Mainstreet Initiative, which offers grants to restaurants, local businesses and micro-enterprises with additional funds to attract more start-ups.
- $200 million to create a more conducive business environment for high-tech, high-growth start-ups and create jobs of the future in Michigan.
- Added 220,000 jobs in 2021, lowers unemployment, and lifts Michigan from a projected $3 billion deficit to a $7 billion surplus.
- Passed a bipartisan tax cut for small businesses, allowing them to grow and create jobs.
- Signed a Buy Michigan executive directive to increase state purchases and contracts with geographically disadvantaged small businesses.
- Signed the bipartisan Strategic Outreach and Attraction Reserve (SOAR) package, which supports businesses by fully funding a competitive economic development toolkit to help position Michigan as a national leader in business attraction.
- Launched over $400 million to support small businesses through Growing MI Business grants.
- In partnership with the Michigan Economic Development Corporation (MEDC), the Governor has implemented 23 economic assistance programs for businesses, supporting more than 25,000 businesses and retaining more than 200,000 jobs, and has provided $100 million per through the Small Business Restart Program to help restaurants and other venues Luxembourg-based businesses cover costs by providing grants of up to $20,000 for mortgage, rent, taxes, payroll and other operating expenses.
The Department of Labor and Economic Opportunity is focused on connecting talent to businesses and providing employers with labor resources. Initiatives include:
- Tuition-free diplomas and certificates: Governor Whitmer has launched a new scholarship program, the first in the nation, which has enabled more than 80,000 essential frontline worker applicants to follow a tuition-free path. Whitmer also launched Michigan Reconnect so that Michiganders 25 or older have the option of earning an associate’s degree or skills certificate tuition-free. To date, more than 96,000 Michiganders have applied. michigan.gov/Reconnect
- Going PRO Talent Fund. Since the program launched in 2014, Going PRO Talent Fund has trained 150,000 Michigan workers at more than 3,200 small businesses. Due to the program’s popularity with employers, Governor Whitmer has shown strong support for the initiative by including strong funding for the program in her budget submissions.
- Expansion of learning: Creating benefits for employers and job seekers through on-the-job learning focused on new industry sectors and increasing participant diversity by recruiting historically underrepresented groups. Federal grants will help Michigan create more than 6,000 new apprentices over the next few years. Michigan.gov/Learning
- MI Tri-Share Child Care Program: This innovative public-private partnership aims to increase access to affordable, high-quality childcare for working families while helping to retain and attract talent. Tri-Share now covers 52 Michigan counties plus the city of Detroit. Michigan.gov/Tri-Share
“While these numbers indicate a strong comeback, our work supporting small businesses through talent programs, employer resources and the Governor’s MI New Economy plan continues to be critical to long-term economic success. of Michigan,” said Suzanne Corbin, Director of the Michigan Department of Labor and Economic Opportunity.
The Michigan Economic Development Corporation (MEDC) shares a commitment to supporting the success of small businesses that form the backbone of the state’s economy. Since October 2020, MEDC has helped small businesses in all 83 counties with more than $73.7 million in funding, helping more than 560 new businesses get started and helping small businesses generate more than $4.3 billion in new income. This support builds on the 23 targeted response and relief programs launched during COVID to support 25,000 businesses in all 83 counties, helping to retain 200,000 jobs during the pandemic.
“No business is small to those who put everything on the line, and so we remain focused on creating pathways and opportunities for our entrepreneurs to realize their vision,” said Quentin L. Messer, Jr., CEO of the Michigan Economic Development Corporation. “The strength of our economy is directly tied to the success of our small businesses, and through the MI New Economy plan, we will continue our commitment to ensuring these businesses can thrive here in Michigan.”
From access to capital and mentorship support to networking connections and international growth, MEDC proudly supports the growth and success of small businesses in every corner of the state with a new leadership position and a new team. of small business services within the organization and with programs including:
- Pure Michigan Business Connect. PMBC is a free service that brings Michigan small and medium businesses together with local, national and global companies for supply chain procurement opportunities.
- International trade service. MEDC offers assistance to help small businesses start or expand export activities to help them grow their business.
- Access to capital. These programs can help small businesses in Michigan receive loans from banks and lending institutions by working directly with lenders who, in turn, can provide critical transitional financing to help small businesses receive the capital they need. need to develop.
- Seed funding. MEDC’s Entrepreneurship and Innovation Initiative helps high-tech entrepreneurs find the seed funding essential to start-up success.
- Micro-Enterprise Development Program. This incentive program is designed to provide grants, loans, and other economic assistance to small businesses that create jobs and/or provide investment in the state.
- Match on Main. A small business grant program for eligible businesses in Certified Redevelopment Ready or Michigan Main Street communities to provide up to $25,000 for interior and exterior renovations and working capital.