Detroit Unveils Initiatives to Simplify Business Operations
The City of Detroit is set to implement significant reforms aimed at easing the establishment and operation of small businesses. Announced by Mayor Duggan and City Council leaders, the plan focuses on reducing unnecessary licensing requirements and enhancing existing processes to better support entrepreneurs.
Key Reforms in Business Licensing:
Remove Redundant Licensing
The proposed changes target the elimination of non-essential licenses that do not contribute to health and safety. This includes consolidating the separate licenses currently required from both the Health Department and the Building Safety, Engineering & Environmental Department (BSEED) for restaurants into a single, streamlined process. Additionally, the amendment proposes extending the renewal period for City business licenses from one year to two years, aligning them with inspection cycles to reduce administrative burden.
Enhance Licensing and Permitting Processes
To expedite reviews and approvals, the City plans to improve its technological infrastructure, resulting in a more integrated and user-friendly system. Clear turnaround times for application steps and enhanced customer service, including updated instructions and guidelines, are part of this initiative.
Introducing the Business Concierge Team
Backed by $600,000 from the FY26 City budget, a new business concierge team will be established to assist small business owners with navigating the licensing and permitting landscape. This team, led by the Deputy Group Executive for Neighborhood Economic Development, will act as a point of contact and advocate for business owners. Their goal is to provide guidance and resolve any concerns during the application process.
These changes, sponsored by Council President Mary Sheffield and co-sponsored by Councilmembers Fred Durhal III and Coleman Young II, arise from a comprehensive six-month evaluation aimed at identifying ways to streamline business initiation and maintenance in Detroit.
“The amount of red tape and bureaucracy business owners deal with in this City drives me crazy,” stated Mayor Duggan. “To help small businesses thrive, we have to be both aggressive and smart to cut back on unnecessary red tape while maintaining the highest health and safety standards.”
According to Council President Sheffield, “Our small businesses have always been the heart of Detroit’s economy and the soul of our neighborhoods. For those reasons, it was important for me to sponsor this legislation which creates a new business concierge service, cuts red tape, streamlines processes, and sends a clear message that Detroit is open for business — and we’re here to help you succeed.”
The initiative emerged from an exhaustive review that included interviews with business owners, customer surveys, secret shopper assessments, and comparisons with best practices in other cities. Chief Operating Officer Marcus von Kapff, formerly of JPMorgan Chase, led the effort.
The City plans to implement these changes by summer 2025, pending City Council approval, with ongoing evaluations to further streamline business-related processes.
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