Now it’s a great time to launch your business in Detroit. As Detroit continues to focus on rebuilding and strengthening its economy, they continue to offer great incentives for business owners, especially small business owners. Here are four reasons why Detroit businesses are taking off.
Michigan’s Corporate Tax Rate
Michigan has a 6 percent Corporate Income Tax rate, which includes a small business alternative credit that provides an alternate tax rate of 1.8 percent of adjusted business income. This puts the state of Michigan at a competitive advantage in comparison to other states, ranking it eleventh nationwide, according to the Tax Foundation.
There is a vast amount of resources throughout the state of Michigan geared to aid in business development and economic growth, especially for small business owners.
- Detroit Development Fund offers a small business loan program. The mission is to support Detroit-based businesses, particularly those owned by entrepreneurs of color and women. They target small businesses with growth potential that lack sufficient collateral and owner equity to qualify for mainstream lending.
- Detroit Economic Growth Corporation (DEGC) is a non-profit organization that works closely with the city of Detroit and other partners to support existing businesses, and to bring new companies and investments to the city.
- The DEGC has a small business program initiative called D2D: Connecting Detroit Business to Business. D2D connects local companies with local suppliers, which builds a community of strong businesses, aiding in each other’s economic success.
Detroit is becoming a major tech hub
Automation Alley’s 2016 Technology Industry report states, Southeast Michigan is a better place for technology companies to do business than Silicon Valley.
And with a major corporation like Amazon opening its tech hub in downtown Detroit, this will definitely lend to the growth of Detroit’s growing imprint in the technology industry.
Local companies like Tech Town Detroit and Grand Circus are answering the call of Detroit’s growing tech scene by providing entrepreneurial services for startup businesses coming into the area, as well as existing businesses. They’re also cultivating local competitive tech talent through training workshops and mentorships.
Small business expansion and growth
With Detroit on the border of Windsor, Canada, as a small business owner in Detroit, you’re in an ideal position to expand internationally. You can find many new clients just across the bridge, excited to contribute to the success of your new company.
These are a just a few beneficial business offerings that Detroit hopes will attract business owners all across the globe.
This article was written by T. Marie Adams for CBS Small Business Pulse.