Great Lakes Wire

On September 18, 2025, Brian Calley, President and CEO of the Small Business Association of Michigan (SBAM), testified before the House Economic Competitiveness Committee. During his testimony, Calley presented an analysis of economic trends affecting small businesses in Michigan and responded to questions from committee members.

Calley emphasized the importance of small businesses to Michigan’s economy. “It is definitely worth time to focus in on small businesses,” he said. “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.”

Calley began his presentation by reviewing data about Michigan’s business landscape. He noted that 99.8% of businesses in Michigan have fewer than 500 employees and that these companies provide over 78% of private sector jobs in the state.

He then discussed ten current trends in Michigan’s economy—five positive and five concerning—and reviewed recent job report numbers. According to Calley, recently revised employment figures show less job creation than previously expected, which matches feedback from small business owners.

During a question-and-answer session with committee members, Calley addressed topics such as entrepreneurship drivers in Michigan, independent contractors’ roles within small business ecosystems, government mandates, trade policy impacts, health insurance costs for small businesses, and ongoing state budget negotiations.

Addressing government regulations, Calley stated: “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.”

Calley also spoke about strategies for supporting existing local companies rather than focusing solely on attracting outside firms. He concluded: “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.”

A full video recording of Calley's testimony is available on YouTube.