What does it feel like to be a small business owner in southeast Michigan right now?

It’s hard to get a firm picture of that, but we do have some numbers to put some paint on the canvas. Right now, the broad story is that the economy is doing well despite uncertainty from high tariffs. 

Corporate profits are strong, the jobless rate is 4.3 percent, and wages are going up. 

In Detroit specifically, the unemployment rate fell to below 10 percent, dropping from 11 percent in 2024. And a new report says that gains are expected to be had here in the finance, leisure, hospitality and public administration sectors. 

But, as noted, difficulty is looming. An effective US tariff rate at almost 16 percent is expected to hamper auto-related jobs. Many have companies stockpiled goods to counteract the tariffs, and some businesses anticipate raising prices. What’s more, companies are hiring much fewer people than they were four years ago.

What does all this mean for small businesses in our area? What does it look like to own a coffee shop, a clothing store, or a small construction company in Metro Detroit?  

Mark Lee is the president and CEO of The Lee Group, where he consults for small businesses. He spoke with Robyn Vincent.

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