Michigan’s economy, mirroring the U.S. economy, is flush with cash as people seek to spend freely despite inflation steadily ramping up its pressure on state residents. This hasculminatined in citizens now re-tightening their wallets once again in preparation for the uncertain future. According to the Michigan Bureau of Labor Market Information, during the first 3 quarters of 2021, small businesses with fewer than 50 employees created almost 170,000 jobs, the fastest start to small business job growth in 23 years. Our state also saw an explosion of entrepreneurs and business owners beginning new ventures in 2021, with 150,000 new small business applications filed to start businesses, which is 59% more than in 2019. According to Opportunity Insight’s Track the Recovery, January 2022 saw small business revenue in Michigan increase by 24% compared to January 2020, while the nation experienced a 6.9% increase over the same period.
The U.S. Census Bureau recently released its report on new business formations for the month of May 2022. A total of 420,586 new startup businesses were reported across the nation for the month, with 68,701 of those applications being filed in our corner of the Midwest. Additional state data has not yet been released.
Michigan is home to 902,000 small businesses, with 1.9 million small business employees, representing 48.3 percent of Michigan workers. 99.6 percent of Michigan businesses are defined as small businesses with fewer than 500 employees. According to the Bureau of Labor Market Information and Strategic Initiatives, over the past two years, Michigan has ranked 10th in small business revenue growth.
“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 Governor Gretchen 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.”