Entrepreneurship is the backbone of a thriving economy, driving innovation, creating jobs, and fostering sustainable growth. Supporting and nurturing this ecosystem is essential to maximizing Michigan’s potential and prosperity.
The Song Foundation sponsored a panel at the 2024 Mackinac Policy Conference featuring Victor Hwang, founder and CEO of Right to Start, and Michigan Lieutenant Governor Garlin Gilchrist and moderated by Nancy Kaffer, Editorial Page Editor of the Detroit Free Press. Together they emphasized the importance of a comprehensive approach to supporting entrepreneurs. They highlighted the need to address issues like access to education, childcare, and healthcare to create a supportive entrepreneurial environment.
Entrepreneurship and Impact
Entrepreneurship is about identifying opportunities, securing resources, and creating value. It involves challenging the status quo and overcoming obstacles to achieve a dream. However, entrepreneurship is often seen narrowly as simply “opening a business,” which overlooks its broader impact. As it stands, current support systems fail to fully address the complex needs of entrepreneurs.
Victor Hwang spoke on recognizing entrepreneurship as a fundamental right– that everyone should have the opportunity to pursue and establish their own business on equitable terms. To make this a reality we have to address barriers to essential resources like education and healthcare. He stated, “Entrepreneurs don’t die from a single blow. They die a death of a thousand cuts.”, in reference to how the lack of such resources undermines entrepreneurial success.
Lt. Governor Garlin Gilchrist added, “We need to think about everything that could impact a person’s decision and ability to say yes to their own idea.” He stressed the importance of creating pathways to entrepreneurship as a means to access health, wealth, and the fulfillment of personal dreams.
Unfortunately, the opportunity to engage in entrepreneurship is not evenly distributed. Marginalized communities, including Black, Hispanic, and rural populations, often lack equal opportunities to start and build businesses. Their voices are frequently overlooked, leading to a skewed perception of the entrepreneurial talent pool. As Lt. Governor Gilchrist noted, “When you’re from a marginalized community, you are a dream chaser… We must equip communities and individuals who have been left out with access to what they need to give themselves a chance.”
Providing every aspiring entrepreneur with the chance to improve their lives not only leads to personal success but can also transform the state and region, reducing income inequality and poverty. According to the Goldwater Institute’s policy report, “Every 1 percentage point increase in the average entrepreneurship rate in a state corresponds to a 2 percent decline in the poverty rate.”
State Support of Entrepreneurship
Governor Gretchen Whitmer’s press release highlighted that in the first three quarters of 2021, businesses with fewer than 50 employees in Michigan created nearly 170,000 jobs. This growth represents the fastest start to small business job creation in 23 years, as reported by the Michigan Bureau of Labor Market Information.
In response, the governor introduced the The Small Business Support Hubs program. In February, the Michigan legislature approved the $75 million Small Business Smart Zones and Business Accelerators program. This program is funded by a one-time appropriation from the American Rescue Plan Act (ARPA). It aims to support small businesses disproportionately affected by the COVID-19 pandemic.
The ARPA funding aims to mitigate the economic fallout from the pandemic by directly investing in small businesses that faced significant revenue loss, workforce challenges, and operational disruptions. The initiative is not just about recovery but about revitalization. By channeling resources into Smart Zones and business accelerators, ARPA helps stimulate innovation, provides crucial access to capital, and promotes long-term stability for entrepreneurs, especially in underserved and marginalized communities.
Vision for the Future
Supporting entrepreneurs in Michigan is about more than investing in businesses; it’s about investing in the state’s future. Michigan has a rich history of innovation and a strong work ethic. By nurturing entrepreneurship, we can foster a thriving, forward-thinking economy where new technologies are developed, new industries flourish, and talented individuals bring their ideas and skills to our communities.