EDA University Center for
Regional Economic Innovation
Exploring the Underground Economy in Detroit (2018)
Co-Implementation Plan - 2018
Author: Rita Fields, Madonna University
Economic development initiatives targeting entrepreneurs have found Detroit to be a ripe breeding ground for talent, and for those entrepreneurs who are able to participate in those programs this has been a time of great fortune. The reality, though, is that these programs are not open to all who desire to ascend to the entrepreneurial ranks. For a multitude of reasons that need to be further identified and explored, some aren't able to take advantage of this opportunity. For some entrepreneurs, transitioning from being 'off the books' (or, as referred to in the title, underground) to 'on the books' would result in a significant pay cut due to the costs of conducting business. The research proposed in this study will focus on the definition of the underground economy, identification of susceptible participants, barriers of entry that have prevented participants of the underground economy from engaging in standardized entrepreneurial development, an attempt to quantify the potential economic impact of the underground economy in the region and why a commitment to reconnect that effort to the overall impact benefits the region and propose recommendations on how funders can be more inclusive in their funding guidelines.