MICHIGAN, USA — It was a dismal 2020 for small businesses because of the COVID-19 pandemic, but Michigan's main street has rebounded stronger than ever.
Gov. Gretchen Whitmer announced Monday that Michigan had the fastest small business job growth in 23 years.
The Michigan Bureau of Labor Market Information said that in the first three quarters of 2021, small businesses with fewer than 50 employees created almost 170,000 jobs.
The surge in small business was in part fueled by 150,000 new small business applications filed to start businesses, a 59% increase from 2019.
“Small businesses form the backbone of Michigan’s economy and are the anchors of communities across the state. Through tough times, they’ve shown grit and innovation to continue getting things done for their customers and employees,” said Gov. Whitmer.
“Recent data shows that entrepreneurs are fired up, starting tens of thousands of businesses and creating nearly 170,000 jobs. While the numbers are encouraging, we must build on this momentum by making investments to retain and recruit more workers, expand operations, and attract additional investment. Together, let’s keep getting things done for Michigan’s booming small business community.”
Michigan boasts over 900,000 small businesses in the state, employing about 1.9 million Michiganders. Nearly 50% of all Michigan workers are employed by small businesses, which comprise 99.6% of all businesses in the state.
Small businesses in Michigan are defined as having fewer than 500 employees.
“The entrepreneurial spirit is thriving in Michigan,” said J.D. Collins, CEO of Michigan Small Business Development Center, a statewide resource for small businesses. “Our consultants are experiencing a record number of start-up ventures and businesses in generational transition. We need the continued support of programs such as the MI New Economy Plan to ensure that Michigan is the best place to start and grow a business.”
The growth of small business continues to be a major focus of the state government and Gov. Whitmer.
Whitmer recently laid out a $2.1 billion proposal to grow Michigan's middle class, support small businesses and invest in communities with her MI New Economy plan.
“While these numbers are indicative of a strong comeback, our work of supporting small businesses through talent programs, employer resources, and the governor’s MI New Economy plan continues to be critical to Michigan’s long-term economic success,” said Susan Corbin, Director of the Michigan Department of Labor and Economic Opportunity (MDEC).
Since October of 2020, MDEC assisted small businesses in every Michigan county with more than $73 million in funding. MDEC helped more than 560 new businesses start up and helped small businesses generate more than $4.3 billion in new revenue.
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