This white paper, prepared for the New Economy Initiative (NEI) and the Michigan Microbusiness Coalition (MMC), outlines the urgent need to formally define and codify the term “Microenterprise” in Michigan statutes. Defined as those with fewer than 10 employees, they are presented as critical drivers of the state’s economic vitality.
Supporting these smallest businesses, including sole proprietorships, startups, home-based businesses, and self-employed individuals, is essential because they fuel the state’s economy by creating jobs, diversifying industries, and revitalizing local communities. They are the lifeblood of “Main Streets,” enhancing the culture of towns and cities and providing accessible employment opportunities, particularly in areas facing high unemployment or disinvestment. Research consistently demonstrates the potential for job creation within this sector; however, this potential is currently stifled by a lack of capacity to scale, not a lack of demand.
The core challenge identified by the paper is that Michigan’s current economic development framework relies on a broad, one-size-fits-all definition of “small business.” This designation can encompass organizations ranging from a single sole proprietorship to a firm with up to 500 employees. The paper, on behalf of the Coalition, urges Michigan’s decision-makers to formally recognize and define “microenterprises,” an essential first step toward creating a more supportive climate and enabling tailored policies and access to dedicated funding.
