October 20, 2022
National & Local businesses stay strong on Detroit economy despite pandemic
Detroit – Detroit Future City (DFC) has released the fifth edition of the Detroit Reinvestment Index, a survey tracking national and local perceptions of Detroit since its historic 2013 bankruptcy. The first report since 2019, the Detroit Reinvestment Index surveyed Metro Detroit entrepreneurs and national business leaders about shifts in perception in relation to the pandemic and opinions about Detroit as an investment and business opportunity, with a focus on the role infrastructure and amenities play in their decision-making.
The Detroit Reinvestment Index 2022 revealed the following key insights:
“We have seen the needs of the business community dramatically shift in the last two years, while at the same time a historic opportunity to invest government funds into catalytic projects has emerged,” said Anika Goss, DFC President and CEO. “It’s important that we keep the pulse on the needs of global companies as well as local entrepreneurs, so we continue to prioritize how we attract and retain business and talent.”
In addition to having favorable perceptions of the Detroit, local entrepreneurs noted an enduring commitment to operating their businesses in the city, citing proximity to suppliers, good tax and regulatory environment, and low cost of living as top reasons they stay. Additionally, they saw that Detroit’s scale and growth, quality of placemaking and livability, and fewer barriers as reasons for starting a business in the city. Minority- and women-owned companies and small businesses in particular noted that incentives and equal economic opportunity are of great importance. Metro Detroit entrepreneurs also rated Detroit as a city that provides the resources and infrastructure they need.
With Detroit vying for national businesses to locate their operations in the city, the Detroit Reinvestment Index shows that these businesses would prioritize a location with more amenities even if it meant a higher cost of living for employees. National business leaders also noted that while Detroit’s amenities and infrastructure are improving, there is room for further enhancements. These business leaders’ top infrastructure priorities are broadband/internet access, dependable utilities, uninterrupted access to quality water, and infrastructure being in good working order.
The Kresge Foundation led the creation of the Detroit Reinvestment Index in 2016, and in 2019 began funding DFC to produce the report. Rip Rapson, The Kresge Foundation President and CEO, said, “The Detroit Reinvestment Index continues to be an important gauge of the progress our community is making toward an urban revitalization that includes all residents, provides equitable opportunity for economic advancement, and reflects just and fair patterns of public and private investment. Although the report offers welcome news in its affirmation that our national business community and local entrepreneurs have confidence in Detroit’s revitalization, it underscores the reality that we continue to fall short in critical areas, particularly in the realm of providing greater support to local entrepreneurs.”
While Metro Detroit entrepreneurs are increasingly positive about operating a business in Detroit, they feel that Detroit lacks an adequately trained work force and that there are limited resources to help start a business. They are also seeking solutions that will help them start and grow their businesses such as more tax incentives, more access to mentorship and training opportunities, more incentives for small businesses to operate sustainably and help preserve the environment, and better networking with partners and customers.
“We are starting from a strong position in Detroit. Confidence in Detroit as a good business decision has increased year over year locally and nationally,” said Goss. “We have an opportunity to leverage perception, build upon our assets, and direct investments to address challenges so that Detroit is a place where not only business can grow in our city but where Detroiters also have the opportunity to prosper from their successes.”
The Detroit Reinvestment Index 2022 is available by visiting www.DetroitFutureCity.com/data_reports/2022-reinvestment-index/. DFC is hosting a webinar on November 9 at noon to present findings from The Detroit Reinvestment Index 2022 and answer questions. Click here to register.