DETROIT (Michigan News Source) — Detroit small business owners can breathe a little easier thanks to a City Council tweak that slashes the hassle of securing a business license. The ordinance passed July 8 doubles the license term from one year to two and merges the two separate permits restaurants once needed into a single license.
For years, Detroit entrepreneurs have been required to renew licenses annually—and, if you run a restaurant, juggling multiple permits on top of state health licenses. Hassan Beydoun, the city’s economic development chief, called the old system a “complex and burdensome web” that shut out small businesses without legal armies to navigate the maze.
“Small businesses don’t have compliance teams, teams of lawyers, accountants and consultants,” Beydoun told Council. “You essentially shut a lot of these people out.”
City budget officials cautioned the changes could shrink annual revenue for the buildings, safety engineering, and environmental department, which handles licensing. But Budget Director Donnie Johnson assured lawmakers that while licensing fee income may dip, the city expects to recoup those losses with increased business activity pumping up sales and income tax revenue.
“We’re not talking about an operational deficit,” Johnson said. “As business activity picks up and new businesses open, we expect that we’re going to start recouping this revenue.”
With about 2,400 active business licenses in the city, according to the Detroit Free Press, officials hope the streamlined process and longer terms will spur more entrepreneurs to launch and expand.
Amanda Elias, deputy economic development chief for Detroit, emphasized the domino effect: “Businesses need other businesses to thrive. What we’re trying to do is bring more businesses around other businesses, because people need businesses.”