Michigan report: self‑employed and micro firms growing, but 'second‑stage' employers lag national pace

Brian Kelly, CEO of the Small Business Association of Michigan, told the Michigan House Committee on Economic Competitiveness that Michigan’s 2025 entrepreneurship scorecard shows growth in self‑employed and micro firms but slower growth among so‑called second‑stage businesses (10–99 employees), which provide the plurality of private‑sector jobs.

"If there's one takeaway from this information, it's to think about small businesses being something bigger than start‑ups," Kelly said, adding that second‑stage firms are "where the resiliency and the most explosive employment growth rests." Kelly said his organization represents more than 33,000 small businesses across Michigan and that the number of self‑employed individuals in the state has risen to more than 800,000.

Why it matters: Kelly told committee members that while 1–9‑employee firms account for about 82% of employer firms by count, second‑stage firms (10–99 employees) account for roughly 37.6% of private‑sector employment. He argued that slower growth among those firms helps explain…