Brian Calley Underscores Small Businesses’ Vital Role in Michigan’s Economy
September 25, 2025
On September 18th, 2025, SBAM’s President & CEO, Brian Calley was invited to testify in front of the House Economic Competitiveness committee. During his presentation, he broke down recent economic trends and answered questions from committee members about the state of Michigan’s Economy for small businesses.
“It is definitely worth time to focus in on small businesses” Brian says, “I think a particular or more intensive focus on second stage businesses as not being a ‘nice to have’ – not just the proverbial ‘small businesses are the backbone of the communities’, and pat them on the head, but understanding that they are the main thing. It’s not a nice to have, it’s the main thing. The main thing in our economies are small businesses. To the extent that the policies and infrastructure built around economic development treat them as the main thing, I think our economy will win.
Presentation Begins: 4:10
Brian’s presentation begins with a review of the underlying numbers behind Michigan’s entrepreneurial landscape, showing that 99.8% of businesses in Michigan have fewer than 500 employees, and that businesses with fewer than 500 employees account for over 78% of all private sector employment in Michigan.
Score Card Review: 10:34
Brian explained 10 major trends going on in Michigan’s economy right now – 5 that are exciting, and 5 that are concerning.
Review of recent Jobs Report numbers: 26:04
To conclude his presentation, Brian discussed recently revised job numbers, which show less job creation than was initially anticipated. These revised numbers are beginning to align with the experiences shared by small business owners.
Post-presentation
After his presentation, Brian took questions from committee members, discussing a variety of topics relating to small business:
- 31:03 – Brian is asked by Chair Hoadley about the key drivers of entrepreneurship in Michigan.
- 33:19 – Brian discusses the importance of independent contractors in the small business ecosystem.
- 38:47 – Brian discusses the policies state government can pursue to spur small business growth, including restrictive mandates and a small-business-centric economic development strategy.
When speaking on restrictive government mandates, Brian said, “You’re always going to have some baselines requirements and minimums people have to do, but by putting high minimums in place, it means that the small businesses in particular cannot be responsive, they have to take away from what their employees want in order to do what the government demands.”
- 43:55 – Brian discusses the strength in small businesses, particularly in times of economic hardship.
- 44:53 – Brian discusses the impacts of tariffs and trade policy on small businesses.
- 48:12 – Brian talks about ongoing state budget negotiations, the work being done by MEDC, and Small Business Support Hubs.
- 53:04 – Brian discusses Medicaid and the rising costs of health insurance for small businesses.
- 58:20 – Brian dives deeper into the causes of rising health care costs, and Association Health Plans
- 1:06:21 – Brian discusses the importance of resisting higher taxes and new mandates, and pinpoints how government programs can be more useful for small businesses.
- 1:12:02 – Brian discusses the obstacles faced by small retailers.
- 1:15:45 – Brian discusses what practices Michigan can borrow from other states to ensure economic growth.
Brian concludes by saying, “The question isn’t, ‘How can we convince some business from someplace else in the world to come in here and save us,’ that’s not the right question. The question is, ‘How can we build an environment of success around the ones that are already here.’ They are the best bet. And if you look at where our employment comes from, existing companies getting bigger – that’s the majority of it. Relocations and startups both can be positive forces, but year over year over year over year, the number one is an existing company just getting a little bigger.