Albuquerque Business Incubator Launches Platform Allowing Emerging Entrepreneurs to Collaborate on Marketing and Co-Distribution Efforts

Today, Citi Community Development and the Albuquerque-based Rio Grande Community Development Corporation (RGCDC) announced that they will work together to launch “Los Mercados: Collaboration for Small Business,” an innovative program that will enable start-up food-service entrepreneurs in the Albuquerque area to increase market penetration through peer collaboration.

Small businesses are a major economic force in New Mexico, comprising 96.2% of the state’s employers. However, the odds are stacked against them, with U.S. Small Business Administration (SBA) figures showing that 50% of small businesses nationwide fail within the first five years.

The Los Mercados program will provide a platform, housed within the South Valley Economic Development Center (the RGCDC’s existing, full-service small business incubator), that will assist with bringing individual “mom and pop” businesses together to go to market as a collective so that they can achieve broad product distribution that would otherwise be extremely difficult. The program, which will also help participants develop marketing tactics and establish prudent financial management practices, will allow entrepreneurs to work together to scale their individual enterprises, grow their incomes, and create sustainable, job-generating businesses.

“This first-of-its-kind program helps underserved entrepreneurs surmount a competitive disadvantage they experience in either starting a business or keeping their doors open, and it is in line with New Mexico’s efforts to move those who are economically vulnerable to self-sufficiency and on to a brighter future,” said Jon Barela, Secretary of Economic Development for the State of New Mexico. “Further, the importance of the program’s job creation potential cannot be overstated in the current economic climate.”

Supporters of the initiative point to data from the National Business Incubation Association (NBIA) that shows that businesses that take advantage of incubation programs are 87% more likely to stay in business. Los Mercados adds a new dimension to traditional incubation strategies by serving not only individual entrepreneurs, but by pooling complimentary businesses to create shared value and increased the likelihood for long-term success.

To support the new initiative, Citi Community Development is providing a $115,000 grant which is being matched by the U.S. Department of Agriculture to provide funding for rural businesses to enter the incubator program. The State of New Mexico, local governments, Whole Foods and major regional retailers will also provide support for the program.

According to the NBIA, for every 50 jobs created by an incubator client, approximately 25 additional jobs are generated in the same community. In its first year alone, the Los Mercados program is projected to enable 120 underserved entrepreneurs to expand into markets they otherwise would not have been able to reach and will create jobs for approximately 80 New Mexico residents. Participants in the program primarily serve the South Valley of Albuquerque, a largely low-income community with an average household income of $36,856 -- 25% lower than the greater Albuquerque area and 31% lower than New Mexico’s median income.

“Scalability and replicability in other markets are key aspects of this program,” said Debbie Taylor, Southwest Region Director for Citi Community Development. “Our hope is that incubators in other markets across the country will be able to learn from the South Valley Economic Development Center’s model. We’d like to see similar programs launched that will make it easier for individual entrepreneurs to work together to rapidly grow their businesses and generate additional income and jobs in their regions.”

“Even with appropriate planning and management, underserved entrepreneurs often can’t compete successfully because of inadequate marketing and distribution channels,” said Tony Gallegos, CEO of the Rio Grande Community Development Corporation. “The collaborative model of this innovative new program and built-in the peer-to-peer support structure will provide more of our client businesses with opportunities to grow.”

About the Rio Grande Community Development Corp

The Rio Grande Community Development Corporation (RGCDC) is a non-profit organization with the mission to preserve, strengthen and revitalize the economics, culture and social dynamics of the South Valley area of Albuquerque, New Mexico. RGCDC operates the South Valley Economic Development Center (SVEDC), which provides provide facilities, resources, and training to support the development of new and expanding small businesses. The SVEDC is a full-service business incubator with training and planning resources for kitchen- and office-based businesses, including one of the nation’s largest commercial kitchens. For more information, visit www.rgcdc.org.

About Citi Community Development

Citi Community Development (CCD) is leading Citi’s commitment to achieve economic empowerment and growth for underserved individuals, families and communities by expanding access to financial products and services, and building sustainable business solutions and innovative partnerships. Our focus areas include: commercial and philanthropic funding; innovative financial products and services; and collaborations with institutions that expand access to financial products and services for low-income and underserved communities. For more information, visit www.citicommunitydevelopment.com.

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