The numbers show how vital small firms are to our economy and communities.

While small firms don’t have the name recognition enjoyed by big corporations, they make an outsized contribution to the economy and local communities. In observance of Labor Day, we took a look at the ways businesses with fewer than 500 are making a difference and the optimism levels among small business owners. The numbers might surprise you.

Michigan small businesses are big employers

Nearly half of Michigan employees work for small businesses. The exact share of Michigan jobs provided by Michigan small businesses was 47.7% in 2022, which translates to 1.9 million employees, according to the most recent data from the U.S. Census Statistics of U.S. Businesses. The SBA Office of Advocacy says this exceeds the national small business employment share.

Billions in exports

Small firms in Michigan exported $12.9 billion worth of goods in 2023, accounting for one-fifth of the state’s exports. And, out of 13,885 exporters, 12,294—or 88.5%—are small businesses.

Many small businesses use AI

Artificial intelligence is in use by 37% of small business owners to help run their business, says the U.S. Chamber of Commerce. 75% of those using AI report it has a positive impact on their business but for 4% it has a negative impact.

Owner optimism is on the rise

In July, the NFIB Small Business Optimism Index rose 1.7 points to 100.3, slightly above the 52-year average of 98. Many respondents to NFIB’s monthly survey say that it’s a good time to expand. However, at the same time the Uncertainty Index increased by 8 points from June to 97, and one-fifth of small business owners cite labor quality as their biggest problem.

We’re a small business too

As a provider of financial services for businesses, we have a special fondness for small businesses since we’re one too! If you want a place for business banking where you’re treated more like a partner and where decisions are made locally, we invite you to talk to one of commercial loan officers.

 

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