Global Detroit — To the House Economic Development and Small Business Committee (April 24th, 2024)

Summary

Letter dated April 24th, 2024, from Global Detroit to the House Economic Development and Small Business Committee, urging the Committee to approve Bill 5463 and establish a legal framework for microbusiness designations within Michigan. The letter states that the bill addresses the needs of over 80% of all small businesses in Michigan. It states that a dedicated center for microbusiness development would provide staffing, resources, support, and direct funding to assist Michigan's smallest businesses. It also states that the bill would enable the collection of data on areas including state government contracts, demographics and regional trends.

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April 24th, 2024

Global Detroit
2050 15th St,
Detroit, MI 48216



To the House Economic Development and Small Business Committee,

On behalf of Global Detroit, I strongly urge the Committee to approve Bill 5463 and establish a
legal framework for microbusiness designations within Michigan.

Currently, state small business policy does not distinguish between any business with less than
500 employees. Yet, there are important differences between microbusinesses of 10 and fewer
and larger companies and our state’s local commercial retail corridors and local economies
would greatly benefit from policies that can target these growing and important firms. Enacting
microbusiness-focused policy will empower the state's largest business category to generate
more jobs and opportunities within local communities across Michigan. This will also lead to a
more efficient allocation of taxpayer resources, ensuring inclusive and equitable economic
growth across Michigan.

This bill directly addresses the needs of over 80% of all small businesses in Michigan. You
shouldn’t have to employ a full-time lobbyist or have an industry representative on the MEDC
strategic fund to know that state economic development policies are working just as hard to
support your microbusiness as it is for larger corporate enterprises. A significant portion of these
firms are immigrant- or minority-owned and/or are located in Michigan’s underserved rural
communities. Creating a dedicated category to support, protect, and track these businesses is
essential for the state's economic well-being. This designation not only establishes the category
but also defines the level of support. This empowers local ecosystems across Michigan to
develop targeted technical assistance programs, grants, and business loans specifically tailored to
best suit these entrepreneurs.

For those of us actively working in the field to create access to resources, the MEDC's role in
coordinating government programs and funding is critical. Establishing a dedicated center for
microbusiness development would provide staffing, resources, support, and direct funding to
better assist Michigan's smallest businesses.

This bill prioritizes a key concern for many in the economic development field. It will enable the
collection of robust and relevant data, encompassing areas like state government contracts,
demographics, regional trends, and recommendations for improved services. The Michigan
Economic Development Corporation (MEDC) arguably requires reliable data and funding more
than any other local government agency to deliver its programs efficiently and on schedule.
This seemingly small policy change will have a significant impact. It will foster an environment
that supports and welcomes a thriving economy. We believe this will be a key factor in attracting
new businesses, job creation, and mitigating population decline.

A strong economy is built from the ground up. Empowering our smallest businesses is not just
about fairness, it's about unleashing the true potential of Michigan's economic engine. Global
Detroit, on behalf of the many communities we represent, urges the Committee to pass this
bipartisan bill and champion the entrepreneurial spirit of Michigan.
––––––––––––––––––––––––––––––––––––––––––––––––––––

About Global Detroit

Global Detroit is a regional economic and community development organization making Detroit
and Southeast Michigan more equitable and prosperous through immigrant inclusion. With a
focus on global talent retention, entrepreneurship, opportunity neighborhoods, inclusive
institutions and research, we develop programs and strategies to revitalize Detroit and to build a
thriving global region with strong neighborhoods, healthy families, successful businesses, and a
rich and diverse cultural life.

PROGRAMS

Talent

The Global Talent Retention Initiative (GTRI) connects Southeast Michigan companies with
international students and graduates, filling critical talent gaps. GTRI includes the Global Talent
Accelerator--an intensive cohort-based program that prepares international students for the US
job market--as well as workshops, networking events, job fairs and other career-building
offerings. We support Southeast Michigan employers with training and resources on immigration
regulations, hiring processes and other topics that will help them attract and retain top talent and
help make Michigan a global business leader.

Entrepreneurship

Global EIR: Provides a pathway for foreign-born entrepreneurs to launch their companies and
create jobs in Michigan, placing them with universities to mentor and teach while working on
their startups. A partnership with the University of Michigan’s Economic Growth Institute.

Growing Small Businesses: Connects small business owners in Detroit’s immigrant
neighborhoods to funding opportunities and the city’s broad ecosystem of small business support
programs.

Opportunity Neighborhoods
Connects residents and business owners in immigrant neighborhoods with homeownership and
home repair programs, foreclosure prevention, small business support, community engagement
opportunities and other resources they need to put down roots and thrive.

Research

Global Detroit began in 2010 with a study on the powerful impacts that immigrants have on the
regional economy. In the decade since, we have and continue to produce an extensive body of
research related to the economic impacts of immigrants, as well as recommendations for
inclusive strategies for our cities, regions, states and nation.


For more questions or information please contact:
Tariq Fanek
Director of Programs, Global Detroit
Email: tariq@globaldetroitmi.org
Number: 501-744-2565
Globaldetroitmi.org


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