Detroit City Wire

Michigan has emerged as the third-best state for entrepreneurial success in 2025, according to a recent study. The state saw an 8.9% growth in business establishments between 2022 and 2023, highlighting its evolving economic landscape. This growth is attributed to local talent and community-driven initiatives across various industries.

In this period, Michigan created 26,612 new businesses, raising the total from 298,855 in 2022 to 325,467 in 2023. This achievement places Michigan behind only Montana and Oregon, which recorded growth rates of 9.4% and 9.9%, respectively.

Detroit plays a significant role in this transformation by leveraging its cultural heritage and emerging status as a tech hub. The city hosts numerous Black-owned businesses that are contributing to the revitalization of overlooked neighborhoods through startups in technology, retail, and food services.

The Michigan Economic Development Corporation supports small businesses with grants, mentorship programs, and access to capital. Initiatives like Motor City Match help entrepreneurs turn their visions into reality by providing funding and resources.

Black entrepreneurs are expanding possibilities while creating generational wealth within historically marginalized communities. Programs focused on diversity and inclusion are aiding these efforts by equipping Black-owned businesses with essential tools for growth.

Entrepreneurship is also growing outside urban centers like Detroit. Cities such as Grand Rapids see innovation in the culinary scene, while Flint uses small business initiatives for community revitalization.

Oregon leads with a net increase of over 18,000 new businesses due to supportive state policies aligned with entrepreneurial needs. Meanwhile, Montana's smaller scale yet notable growth highlights potential even in less populated areas.

Conversely, Virginia faced a decline of 5% in business numbers between 2022 and 2023 due to insufficient support for entrepreneurs. Michigan’s rise underscores how strategic investments can foster economic progress through small business development.

Michigan’s entrepreneurial sector contributes significantly to job creation and neighborhood revitalization while addressing community challenges like food insecurity and clean energy solutions.

Virginia's loss of over 16,000 businesses serves as a cautionary tale about neglecting entrepreneurship support. In contrast, Michigan exemplifies how targeted investments can drive broader economic benefits.

The state's progress calls on policymakers and community members to continue supporting entrepreneurs by addressing barriers to entry and expanding access to capital.