November 12, 2025
Today, the New Economy Initiative (NEI) and Detroit Future City (DFC) released “Growth-Stage Businesses in the Detroit Region: Insights and Solutions to Fuel Economic Impact,” an in-depth analysis that sheds light on one of the most powerful yet often overlooked drivers of Southeast Michigan’s economic vitality: growth-stage businesses.
A special project of the Community Foundation for Southeast Michigan, NEI works to build a stronger regional network of support for entrepreneurs and small businesses. This report reflects that mission by shining a light on what growing firms need to thrive. The report was developed with research partner Detroit Future City (DFC), the urban innovation center and think tank focused on advancing economic equity in Detroit.
It builds on NEI and DFC’s 2024 State of Micro and Small Business in the Detroit Region study by focusing on firms that have moved beyond the startup phase – typically with 10 to 100 employees and annual revenues exceeding $250,000. These businesses play a significant role in the economy but often require different types of support compared to earlier stage start-ups. Through interviews and focus groups, conducted by DFC, with 22 business owners across the Detroit Region, the report explores how capital access, access to talent, business support services, technology adoption, and policy environments shape their growth trajectory and opportunities to support these businesses.
“Metro Detroit’s economic resilience depends on ensuring that businesses can scale here, not just start here,” said Wafa Dinaro, Executive Director, NEI. “When we invest in growth stage companies, we’re not only fueling job creation and innovation; we’re strengthening the entire entrepreneurial pipeline. These businesses create opportunities for collaboration and mentorship that uplift smaller firms and inspire new ones to follow. Supporting their continued growth helps cultivate a well-rounded, interconnected business network that reflects the creativity and resilience of our region.”
An Overlooked Economic Engine
While startups often capture attention, growth stage companies are critical parts of regional economies and have the potential to grow into medium and large businesses. Locally, these companies are proving their models, employing Detroit-area residents, and reinvesting in their communities, but they also face a “service gap.” Many have outgrown startup support systems and struggle to access the flexible capital, skilled workforce, and streamlined policy support needed to expand further.
A Roadmap for Regional Competitiveness
The report identifies five key challenge areas: capital; business support networks; technology; workforce; and government policy. It offers actionable strategies to strengthen the ecosystem:
Flexible Capital: Provide more flexible capital options such as milestone- or revenue-based financing, increase the availability of grants and low-cost loans, and pair lending with advisory support.
Connected Business Support: Create a regional directory and single application portal for business support services, and fund long-term, industry-specific advisory and mentorship models.
Technology Adoption: Establish grants to help firms afford and implement technological upgrades.
Talent Development: Expand apprenticeships, improve feedback loops with workforce agencies, and provide management training for founders.
Policy Alignment: Simplify procurement and permitting processes and expand liaison roles to help small businesses navigate government systems.
Next Steps
“Growth-Stage Businesses in the Detroit Region: Insights and Solutions to Fuel Economic Impact” also recommends a coordinated regional approach, combining public-private partnerships, philanthropic investment, and anchor-institution engagement, to strengthen Southeast Michigan’s competitiveness and make it a national model for economic growth.
“Growth stage businesses anchor neighborhoods, expand career pathways, and circulate wealth locally,” said Anika Goss, DFC, President & CEO. “If we align capital, talent, and policy around the needs of growth stage firms, we can unlock the next generation of the region’s job creators and innovators.”
DFC will be hosting a webinar on Wednesday, December 10, at 1 p.m. to offer further insights and discussion about the challenges and opportunities facing local growth-stage businesses, and answer community questions.
To view “Growth-Stage Businesses in the Detroit Region: Insights and Solutions to Fuel Economic Impact” and register for the webinar, visit www.detroitfuturecity.com.
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