 Grand Haven, Michigan
Across the nation and throughout the state of Michigan, small businesses have proven to be the key determinant of successful downtowns. Other elements that make downtowns attractive such as friendly zoning ordinances, Downtown Development Authorities or Main Street Programs, and community events, all play a critical role in activating a community's downtown. However, a downtown wouldn’t feel vibrant without active and thriving small businesses. Fostering a welcoming environment for small businesses to grow and thrive is another key component to success.
Key benefits of fostering small business in your downtown:
1) Small businesses create a sense of place and amplify a community's unique culture.
Think about some of Michigan's unique small businesses that have turned into tourist destinations. Cops N' Donuts, a small business which originated in downtown Clare by a handful of police officers who wanted to save their local bakery, is now a prime example of a unique story that has gained national attention and continues to serve as a destination in downtown Clare. Likewise, The Little Fleet in downtown Traverse City adds a semi-permanent incubator for unique food truck vendors to the downtown district and is a must-stop venue for both locals and tourists to get a bite to eat. These small businesses embody their community's culture, create a unique experience, and serve as inspiration for other business owners and downtowns.
2) Small businesses create an environment for economic resilience.
Small businesses bring jobs and diversify local employment opportunities. According to the 2018 United States Small Business Profile, businesses from 2000 - 2015 with fewer than 20 employees experienced the largest employment gains at an estimated 1.1 million jobs. What does that mean for downtowns? Michigan downtowns are benefitting from healthy job growth as a result of the small businesses who continue to grow and invest. In addition, small business impacts the local economy as more money recirculates locally through small business then through big box stores.
3) Small businesses build wealth locally.
Not only do small businesses create jobs, but they build wealth within communities. Small business owners and their employees live and pay taxes regionally; they purchase from other locally owned businesses; their children go to local schools; and often times they even serve as volunteers for Downtown Development Authorities, Main Street Programs, or Chamber of Commerce organizations. Of $100 spent at a local small business, $68 stays in the community by way of wages, community donations, local taxes, and local services and supplies.* By creating an environment that encourages small business, communities foster financial and intellectual wealth locally.
* Localfirst.com
Michigan Communities Foster Small Business Growth
Below are a few examples of communities across Michigan that are using the Michigan Main Street program to successfully foster small business growth.
1) Grand Haven, Michigan
 Photo source: Marushka
Established in 1971, Marushka has been hand printing wearable art for nearly 50 years. Not only does Marushka have a thriving business in downtown Grand Haven that captures the local customers and tourism traffic, they do a ton of business nationwide selling their products wholesale. Owner Randy Smith has been actively involved in the local Main Street program as a volunteer and supporter.
2) Owosso, Michigan
 Photo source: Joe Matteson Photography
Foster Coffee established its first location in downtown Owosso in 2015 and will be opening its third storefront this summer.
“[My business partner] Jon Moore and I see firsthand how the structure and support of the Michigan Main Street has a positive impact on a community and how when it’s absent, it creates many obstacles to growth. A Michigan Main Street designation is something we’re now heavily considering when deciding on future expansion cities for Foster.”
– Nicholas Pidek, Foster Coffee owner
3) Wayland, Michigan
 Photo source: Wayland Chamber of Commerce
The Wayland Main Street program recently paired a local flower grower wanting to locate in the downtown area but disinterested in running a day-to-day operation of a brick and mortar business with an entrepreneur hoping to establish a new retail business. This collaboration resulted in not only a new business in downtown but a long-term transition plan for the business that will ensure Dahlia City Floral & Gifts as a downtown destination for years to come.
Local Investing as a Way to Support Small Business
Small business can generate capital to start up or expand through garnering local investment or community capital. MEDC is working with one of Michigan's most dedicated community capital champions, Revalue, who will be bringing a unique educational experience to seven Michigan Main Street communities in 2019. After much work and anticipation, Revalue announced the official launch of Michigan's local investor education initiative, under the name Grubstake, in partnership with MEDC and Michigan Main Street.
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Where did the name Grubstake come from?
It's a term from the late 19th century that has fallen out of use, but is completely applicable today:
Noun: An amount of material, provisions, or money supplied to an enterprise (originally a prospector for ore) in return for a share in the resulting profits.
Verb: Provide with a grubstake.
The term was coined during the era of gold mining. Miners would come into town and local residents would offer a grubstake in the form of lodging, food, or basic necessities. In exchange the residents would receive a portion of the profit, or a grubstake.
Revalue has created a way for community members who might be interested in investing in their own backyard to get their feet wet with the due diligence process by putting them through a mock pitch and investment decision experience.
If you would like to learn more about fostering small business growth and community investment in your downtown, please consider attending the Grubstake events coming up in partnership with the Michigan Main Street (MMS) program or contact the Michigan Main Street team.
Upcoming Events
For Small Business
Grubstake – These workshops teach the fundamentals of how to make sound investments in your community.
- March 14 – Niles, MI
- March 21 – Milan, MI
- April 9 – Wayne, MI
- May 7 – Sault Ste. Marie
- May 9 – Charlevoix
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Northern MI Small Business Training Series – In partnership with the Michigan Main Street Program, the Michigan Small Business Development Center is hosting the following small business workshops. The workshops are open to any small business, however, if your business is located in a Select or Master level Michigan Main Street community, contact your local Main Street Director to register at no cost.
- January 31 – How to Buy or Sell a Business (Boyne City)
- March 7 – eCommerce Strategies: How to Sell Online (Grayling)
- April 18 – Creative Marketing Strategies: Leveraging Community Events to Boost Sales (Charlevoix)
For Municipalities
Michigan Main Street Training Series – provides an opportunity for interested communities to learn more about the Main Street approach and the tools and resources offered by Michigan Main Street. It is ideal for DDA executive directors, DDA board members, business/property owners, downtown champions, local municipal leaders, and other key stakeholders.
- April 30 – Howell
- June 19 – Wayland
- July 25 – Evart
Redevelopment Ready Communities Best Practices Training
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Best Practices 1, 2, 3
- Thursday, February 14, Lansing, Michigan Municipal League
- Tuesday, April 9, Detroit, SEMCOG
- Wednesday, August 21, Cadillac, City Council Chambers
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Best Practices 3, 4, 5
- Thursday, March 7, Lansing, Michigan Municipal League
- Wednesday, May 8, Detroit, SEMCOG
- Tuesday, September 10, Cadillac, City Council Chambers
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Training for RRC Best Practices 1-6 is also available online at no cost. This offers an opportunity for currently engaged communities to encourage additional staff, officials and stakeholders to learn about and become active participants in local RRC efforts. Register for the online training at miplace.org/RRCtraining.
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