Community Empowerment Matters

  Do you need access to proper funding to get your business off the ground? Small business owners can secure funding via loans from traditional financial institutions; however, microfinancing is another option that could be the right choice for your business. While the term “microfinance” might evoke images of rural women’s collectives in developing countries, microlending is a real option for small business owners throughout Michigan and has a long and storied history in the United States. Sometimes, a business just does not qualify for a traditional loan because it is too new or too small. In that case, microfinance can help you access the funding you need to continue your business operations. What are Microloans? Microloans are typically offered in amounts up to $50,000 and provide funding to underserved entrepreneurs, such as women, veterans, and entrepreneurs of color. They are available through certain nonprofit, community-based organizations that are experienced in lendi...

  Operators of small businesses or nonprofits may experience legal disputes every now and then. Whether from a resentful employee, an injured visitor on the premises, or a disgruntled contractor, costs for these disputes can easily arise in the cost of running a community enterprise. These disputes can be frustrating, and the exorbitant legal fees required to defend the small business or organization may not be warranted. For this reason, alternative dispute resolution (ADR) has become an increasingly promising option for settling small business disputes.   ADR refers to methods and techniques used to resolve disputes outside of traditional and adversarial courtroom litigation. In addition to serving as a potential means of avoiding the expense, delay, and uncertainty associated with traditional litigation, ADR is intended to improve communication between parties. ADR allows for creative solutions to disputes that might better meet the needs of the parties.   Options for...

  [Image Description: The United States Department of Labor’s Francis Perkins Building]   Background: Proper classification of one’s workforce is essential for any small business. The consequences of misclassification can be substantial, and an employer may be held liable for damages and penalties. [1] Although the line can sometimes blur, the differences between an independent contractor and an employee are vast. Generally, because independent contractors are owed fewer duties than employees (chiefly, the right to be paid a minimum wage and receive benefits), it is considered easier and less expensive for a small business to hire workers as independent contractors. [2] Perhaps most importantly, protections under the Fair Labor Standards Act (FLSA) do not extend to independent contractors.   Prior to the Trump administration, the courts developed a six-factor “economic-realities” test to determine proper worker classification, weighing:        ...

  Metro Detroit’s economy has been steadily growing since the Great Recession of 2008. Detroit Future City reports that the local economy has nearly rebounded, particularly with regard to the increase in the number of jobs as compared with those that existed in the region in the early 2000s. However, despite the growth in the region, the report outlines how jobs alone have not been enough to create genuinely equitable outcomes for people of color in the region.   Research on building a more inclusive and equitable economy in Detroit has often focused on equitable hiring practices, increasing accessibility to different job opportunities, providing training and educational support, and other such initiatives. Arguably, omitted from the equation is the role of business structures used for economic growth and their ability to impact economic equity. Considering about half of Detroiters are employed by small businesses, the structures of these businesses play a vital role in the...