Article courtesy of MIRS for SBAM’s Lansing Watchdog newsletter
(FLINT) – Democratic gubernatorial nominee Jocelyn Benson said the Michigan Economic Development Corporation (MEDC) may need to be “reformed, if not changed or broken up,” as she considers creating a separate entity focused specifically on growing small and micro businesses.
She said the state’s current approach to economic development is too broad to adequately address the different needs of smaller businesses.
“It’s very clear that a one-size-fits-all policy for economic development is not actually going to develop our economy,” Benson said, floating a “multifaceted approach” that could include multiple agencies.
Benson did not immediately say she has a proposal forthcoming, but said it’s something she wants to study by looking at what other states are doing and talking with business owners before developing a proposal.
Democratic gubernatorial nominee Jocelyn Benson speaks with local small business owners in Flint about the challenges and obstacles they face.
The comments came during a small business roundtable in Flint, where Benson said she wants Michigan to be the small business capital of the nation.
She heard from local business owners and advocates representing everything from barber shops and a skincare business to a yoga studio, bartender training school and restaurants. She was also joined by Rep. Cynthia Neeley (D-Flint) and her husband, Flint Mayor Sheldon Neeley.
A recurring theme throughout the roughly 45-minute conversation was that many of the resources available to small businesses are designed either to get them started or are structured around businesses significantly larger than theirs.
One business owner said it becomes more difficult to find grants, mentorship and other support once a business has survived its first few years and is trying to scale. Another said microbusinesses are being lumped into the same category as companies with hundreds of employees when it comes to taxes, despite having vastly different resources to handle new regulations and costs.
“I shouldn’t be in the same category as a Walmart,” Terance Green, owner of Black Amor Yoga Studio, said.
Some of the business owners also framed rising material and inventory costs as a consequence of tariffs imposed by the Donald Trump administration.
La’Asia Johnson, a skincare business owner, said she initially believed about 80% of her materials were being sourced domestically, only to discover that her U.S.-based suppliers were importing some of those materials themselves and passing along higher costs.
Others said the impact goes beyond businesses directly importing products, with higher costs for gas, supplies and other necessities eventually trickling down to them and their customers.
Several owners said they are caught between keeping their services affordable and making enough money to grow their businesses. Others described struggling with the cost of hiring employees, navigating taxes, obtaining financing and paying for health insurance.
One participant said her monthly health insurance cost increased from $283 to $490, while another said keeping a separate full-time job was necessary in part to maintain insurance.
“You are job creators,” Benson told the group after the conversation wrapped, “Everyone talks about needing more jobs, and here you are working every day, 80 hours, multiple jobs to create more jobs, to create power, create wealth.”
Benson spoke to reporters after her roundtable and laid out the three areas her small business agenda currently centers on.
First, she said she wants to streamline state government so it acts as a “helping hand and not an obstacle course” for small businesses. Second, she wants to increase financial assistance not only for startups but for businesses trying to scale, while expanding access to mentorship and networking.
Third, Benson said she wants the state to push back against federal tariffs or, as she says, “the John James tax”, including by pursuing subnational agreements with other countries.
Benson also fielded questions outside economic development, including one about what transparency means to her as she emphasizes safety and security while making decisions such as removing addresses from candidate filings.
Answering broadly, she returned to familiar themes of an “open and accountable” government. Benson pointed to a portal where the public can access Freedom of Information Act requests and responses and said that, if elected governor, she would “voluntarily comply with FOIA.”
“To me, transparency and open government yield citizen engagement and help create an informed and engaged citizenry, which is crucial to a healthy democracy,” she said, “Citizens can have access to information about why and how decisions are being made that have impacted their lives, and can also be a part of those conversations as well.”
Click here for more News & Resources.