Michigan’s small business growth continues high after pandemic – 9&10 News

Business is booming.

Or at least that’s the number of small businesses applying for a tax ID in Michigan.

According to new numbers from the US Census, the number of new business applications filed last month was 7 percent higher than the same period last year. The number rose after the outbreak and has remained high ever since.

“When people are more entrepreneurial, everything is good across the board,” said Brian Calley, president of the Michigan Small Business Association.

It’s pretty clear to see, when you put them on the graph, that Michigan’s new business applications fell off early in the pandemic before they shot up. After the epidemic, the number is higher than before the epidemic.

“The relative risk of starting a new business can be lower or sometimes even lower when there is more economic uncertainty,” sad Calley.

Calley said most of the new applications are for single owners.

“You say whether you’re going to be a business with employees or a business without employees,” Calley said. Or in other words, a sole proprietor or independent contractor.

This was a direct result of the epidemic. People lost their jobs or worked from home and realized their skills and financial security would be better off in their own hands.

“In the old days, people had to choose their W-2 job or start a business?” said Kali. “Now people, in many cases, can get both, and that’s what we see happening. I think this is actually a big, big difference from pre-pandemic times.

Businesses with employees are not up to the mark either. Calley said the state is moderately prosperous, but any new business growth is a welcome development.

“This is all good news for a state like Michigan, which in the past has suffered from having too many eggs in one basket,” Calley said.

Can these independent contractor businesses help weather a potential recession? Maybe. Michigan has such a labor shortage that large businesses that have to scale back won’t lose a lot of workers and solopreneurs will have to deal with a smaller downturn.

“There are still not enough people. There are 10 job openings for every seven people looking for work in Michigan,” said Calley. “This means that the state can eliminate some jobs without causing significant unemployment.”