Detroit lifts burdens on small businesses, eases licensing process

The Detroit City Council approved changes to make it easier to own a small business in the city during its Tuesday meeting.

Among the biggest changes is doubling the time period between when businesses must apply for a license from one year to two years. 

Big picture view:

The city council unanimously approved changes to Detroit's small business code, streamlining the process for obtaining a license while creating a team of employees that will help owners navigate the work required to get up and running.

It will create less paperwork for the buildings department, catalyze small business creation in Detroit, and drive revenue up for both owners and the city, officials said.

City councilmembers and the mayor announced plans to ease the licensing process in Detroit in May in hopes of easing the cumbersome process for owners.

Because employees of the Buildings, Safety Engineering, and Environmental Department won't be processing license paperwork, they'll spend more time rooting out other businesses that are not in compliance. 

Dig deeper:

One of the biggest changes small businesses will see is extending the city business license so that it lasts two years instead of just one. Because mom-and-pop shops don't have employees ensuring their compliance is up-to-date, they often fall behind.

There will also be the creation of a concierge team - a group of employees specifically tasked with helping small businesses track down what they need and where they need to get it. 

Speaking before council ahead of the vote, one member of the mayor's team said businesses are often "opening their doors in the negative" because they have to work with both the city and contractors hired for construction. Missed deadlines and timing constraints can push back open dates by months, making it even harder to get started.

Technology upgrades are also expected to make the application process easier for aspiring owners.

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Not every business in Detroit will be subject to the licensing changes. 

Among those are marijuana businesses, which must obtain a business license from the state of Michigan, rental halls, and sexually oriented businesses like adult bookstores and arcades. 

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The Source: The Detroit City Council meeting on Tuesday was cited while reporting this story. 

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