Opinion: Michigan’s small businesses are still getting the cold shoulder from Lansing

You don’t have to be an economist or an economic developer to know that many of Michigan’s small businesses are struggling. Just walk down the main street in your town. The rising costs of goods sold or used to make products, along with a severe shortage of workers, means small businesses have been hit hard in the pocketbook, forcing many to drastically reduce hours or close up shop altogether. There are empty storefronts along commercial corridors in big cities and small towns across the state.

Even traditionally prosperous downtowns are not immune. On a recent visit to Ann Arbor’s historically 100% occupied Main Street, I counted nearly a dozen empty storefronts along a three-block stretch. Even those businesses that are open are struggling with continued work-from-home policies reducing their foot traffic and lunch crowds.

What has the response from Lansing been? A bipartisan group of legislators created a fund with over a billion dollars … and promptly gave it to big manufacturers to encourage them to create low-wage production jobs.

During this rather rapid process, a number of us (including some legislators) who understand that there are already hundreds of thousands of low-wage jobs available and unfilled in Michigan and that paying millions to create more was a bad idea, pointed out to lawmakers that there were tens of thousands of small businesses in the state that were begging for help.

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These mom and pop enterprises are responsible for nearly half the jobs in the state, but their impact is far more important than just jobs. They provide amenities and improve quality of life for Michigan’s residents. Bustling commercial corridors and main streets make Michigan a place where people want to be and their kids want to stay after graduation.

The response from legislators was, “Be patient. We hear you, and we’ll do something for small businesses next.” Then they went on break and hit the campaign trail, leaving the lifeblood of Michigan’s economy and community in the lurch. Last month, citing a new opportunity to land a battery production facility, legislators quickly reconvened and threw hundreds of millions more to create jobs that pay below the median household income in Michigan.

While small businesses are told to be patient, politicians rush to get in line to spend fortunes in tax payers dollars on projects that create big headlines but few quality jobs, generally lowering the standard of living in the state. It's an election year, so political candidates love having talking points about how they’re creating jobs and making Michigan more competitive. But as informed voters, it’s our job to hold their feet to the fire and ask them to explain why they’re prioritizing jobs that pay under $20 per hour when the streets in our downtowns are riddled with vacant storefronts.

Governor Whitmer proposed a plan almost a year ago to use federal Covid-19 relief funds to help small businesses and refill our commercial corridors with amenities that improve the lives of residents, but the legislature has never even held a hearing on it. The Small Business SmartZone plan would provide direct technical assistance to every business in the state, connecting them with local coaches who can help them better reach their customers, improve their facades and patios, strengthen their e-commerce capabilities, and get more funding to stabilize and grow.

It would create new restaurants, services and retail options while generating thousands of jobs in our local communities, making them more walkable and attractive for residents both current and new. Best of all, it costs a fraction of what it takes to provide incentives for a single new production facility.

The state already provides this type of support to technology-focused businesses but has historically ignored the rest. It’s time that Lansing shows that it cares about EVERY business in Michigan and puts its money where its mouth is. So, when a candidate asks for your vote this election season, tell them to support Michigan’s small businesses first.

Ned Staebler serves as vice president for economic development at Wayne State University and as president and CEO of TechTown, a Detroit-based business incubator and accelerator.

This article originally appeared on Detroit Free Press: Opinion: Lansing still gives Michigan small businesses cold shoulder