Since the launch of her mayoral campaign, candidate Saunteel Jenkins has been preaching how important it is for City Hall to lower the barriers to entry for small businesses and entrepreneurs looking to launch or relocate their companies in Detroit.
“Right now, it’s about 77 steps to start a new business in the city of Detroit. That’s a real barrier to entry. If we want to be a city that is business friendly and we say we want to attract investment, and innovation, and jobs, we have to make it easier – the licensing process and the permitting process for businesses,” she said.
In a move aimed at transforming how small businesses interact with City Hall, Mayor Mike Duggan and members of the Detroit City Council put forth a sweeping reform package that will simplify the process of starting and operating a business in the city. The proposed changes target outdated licensing requirements, streamline permitting procedures, and introduce a new concierge team to help entrepreneurs navigate city systems — all part of a broader push to make Detroit more business-friendly.
The initiative is the result of a six-month comprehensive review of the city’s licensing and permitting practices, with direct input from local business owners and community stakeholders. City leaders say the plan could reduce startup times for new businesses by as much as two months and eliminate licensing burdens for more than 20 percent of businesses operating in Detroit.
“The amount of red tape and bureaucracy business owners deal with in this city drives me crazy,” Mayor Duggan said during the announcement. “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.”
One of the most notable reforms in the proposal is the elimination of duplicative licensing requirements for restaurants — which currently must obtain separate licenses from both the Detroit Health Department and the Buildings, Safety Engineering and Environmental Department (BSEED). Under the proposed changes, restaurants would only need the Health Department license, which includes the necessary health and sanitation inspections. This change alone is expected to shave roughly 60 days off the startup timeline for many restaurants, which represent more than 20 percent of all licensed businesses in the city.
Another major improvement is the proposed shift from annual to biennial business license renewals. Currently, business owners often spend over a month renewing licenses each year, only to repeat the process less than a year later. Under the new system, licenses would be valid for two years, aligning with the city’s inspection schedule and significantly reducing the administrative load on small business owners.
The city also plans to invest in long-needed process improvements. These include upgrades to internal technology systems to streamline application reviews, increased coordination across departments, and clearer communication with applicants. Business owners can expect more predictable timelines, simplified paperwork, and better customer service thanks to redesigned websites, updated guidance materials, and user-focused support tools.
To ensure that entrepreneurs receive personalized support throughout these processes, Detroit will launch a new Business Concierge Team. This dedicated unit, funded by $600,000 in the city’s FY26 budget, will serve as a single point of contact for business owners — offering assistance, advocating on their behalf, and helping coordinate responses across departments. The team will report to the Deputy Group Executive for Neighborhood Economic Development and is modeled after the Development Resource Center already operating within BSEED.
City Council President Mary Sheffield, who is sponsoring the proposed ordinance changes, said the reforms represent a critical step toward supporting small businesses and strengthening Detroit’s neighborhoods.
“Our small businesses have always been the heart of Detroit’s economy and the soul of our neighborhoods,” said Sheffield. “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.”
Councilmember Fred Durhal III, a co-sponsor of the ordinance, emphasized the importance of removing outdated regulatory barriers and creating a more transparent, welcoming environment for entrepreneurs.
“Detroit’s future depends on our ability to remove outdated barriers and rethink how we support those building value, not just for profit, but for people,” said Durhal. “The Business Licensing Ordinance Amendment brings us closer to a city where entrepreneurs are met with clarity and respect, not confusion and delay. By cutting unnecessary red tape, we open the door to cutting more red ribbons — and that’s how we boldly invest in the people building our future.”
Councilman Coleman Young II echoed that sentiment, describing the proposal as a long-overdue shift in how the city treats its small business owners.
“For too long, we have made it difficult to start businesses in the city of Detroit,” Young said. “The cornerstone of the American Dream is small businesses and entrepreneurship. We need to make it easier, not harder, to start a small business. The heart of the city of Detroit is small business, and we need a system that shows Detroit means business.”
The initiative was developed following a six-month analysis led by Detroit Chief Operating Officer Marcus von Kapff, a former JPMorgan Chase executive. The team engaged in direct conversations with local business owners, conducted secret shopper testing of the city’s licensing systems, and produced a 12-page process map of the steps required to open a restaurant in Detroit. They also benchmarked Detroit’s practices against peer cities with more streamlined systems.
Pending approval by the City Council, implementation of the proposed reforms will begin this year, with most elements expected to be in place by late summer. Duggan indicated that the administration will continue evaluating additional opportunities to simplify regulations and make Detroit more welcoming to entrepreneurs and small-scale developers.
At its core, the plan aims to send a clear message: Detroit is serious about supporting small businesses, not just with words, but with action. By reducing bureaucratic barriers and offering more hands-on support, city leaders hope to energize Detroit’s small business ecosystem and create a more inclusive economic future for neighborhoods across the city.
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