Investment in Small Business Incubators: The Case for Nurturing Local Entrepreneurship Growth
The South Valley Economic Development Center (SVEDC) is marking its 20th anniversary this year, having played a pivotal role in New Mexico's economic development for two decades[1]. Over the years, SVEDC has supported over 200 businesses, contributing to the growth of local food systems and creating economic opportunities in the community[2][3].
As a certified business incubator, SVEDC offers training, technical assistance, kitchen access, and financial guidance to local businesses[4]. This support has resulted in millions of dollars in revenue generation and the creation or sustenance of hundreds of local jobs[5]. In fact, more than 20 of the businesses supported by SVEDC have grown into brick-and-mortar locations[6].
Some of these businesses have even earned national recognition, such as Buen Provecho ABQ[7]. The centre, which opened in 2005 and housed the state's largest community commercial kitchen at the time[8], continues to be a program of the Rio Grande Community Development Corp. and one of only 7 certified business incubators in New Mexico[9].
The importance of business incubators like SVEDC in New Mexico's economy can't be overstated. They deliver strong returns, with 87% of businesses that go through incubators still operating after five years[10]. This is a testament to the effectiveness of incubators in fostering sustainable growth for startups and small businesses.
State and local leaders have recognised the value of incubators as long-term economic engines. In 2019, the New Mexico Legislature passed HB479, allowing counties and municipalities to double their local gross receipts tax for economic development, showing bipartisan support for incubators[11]. However, more needs to be done. Incubators deserve permanent funding to continue supporting small businesses and driving economic growth in New Mexico[12].
In 2021, Sen. Linda Lopez, D-Albuquerque, introduced SB292, proposing state funding for certified incubators, though it did not pass[13]. As we look to the future, it's clear that the future of New Mexico's economy is already present in neighbourhoods, kitchens, and storefronts, ready to grow with the right support[14].
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References: [1] New Mexico Business Weekly [2] Albuquerque Journal [3] Santa Fe New Mexican [4] Community Foundation of Southern New Mexico [5] SVEDC Annual Report 2020 [6] Albuquerque Business First [7] New Mexico Magazine [8] Albuquerque Journal [9] New Mexico Economic Development Department [10] National Business Incubation Association [11] New Mexico Legislature [12] Albuquerque Business First [13] New Mexico Legislature [14] Albuquerque Journal
- The South Valley Economic Development Center (SVEDC) provides training, kitchen access, and financial guidance to over 200 businesses, contributing to local food systems and fostering economic opportunities.
- Small businesses supported by SVEDC have generated millions of dollars in revenue, created or sustained hundreds of local jobs, and some have even received national recognition.
- Recognizing the importance of business incubators in New Mexico's economy, state and local leaders have enacted policies to support them, such as doubling the local gross receipts tax for economic development, but more permanent funding is needed to continue their work in sustaining and growing small businesses.
