The state is experiencing the fastest small business job growth in 23 years, according to the Michigan Bureau of Labor Market Information.
Tony Fox, Mid-Michigan regional director for the Michigan Small Business Development Center said the unique circumstances of the pandemic allowed more people to pursue small business endeavors.
“They may have found themselves idled from their normal scope of work, or perhaps had some additional time available to them because they no longer had a commute and were working from home, ” he said.
Fox said some companies in 2021 were able to participate in the payroll protection program and the restaurant revitalization fund. Others accessed economic injury and disaster loans.
“Those companies have weathered the storm, and in some cases quite well, if their industry has not really missed a beat,” Fox said.
He said small business growth this year will most likely be driven by consumer demand.
“If the consumer is confident, I think the outlook is much better for small businesses. If the consumer gets concerned with a rising interest rate environment, that could change their behavior, which directly impacts the success of many small businesses,” Fox said.
Small businesses in Michigan provided nearly 170,000 jobs in 2021, according to data recently highlighted in a press release from Gov. Gretchen Whitmer.
The vast majority of businesses in Michigan are small businesses with under 500 employees. Fox said they are the economic backbone of the state.
