Small Businesses Promote Place and Enhance the Local Economy

Cafe Con Leche in Southwest Detroit

Cafe con Leche in Southwest Detroit

There are many incentive programs targeting entrepreneurs, such as funding opportunities like Hatch and Revolve, but few grant dollars are going towards existing businesses. With the goal to increase business sales, create new jobs, and enhance economic stability in urban neighborhoods, the New Economy Initiative recently tackled this very issue.

NeIdeasIn partnership with the Community Foundation of Southeast Michigan and the Detroit Economic Growth Corporation, they awarded 30 small businesses in Detroit, Hamtramck, and Highland Park $10,000 grants to grow their business.

The NEIdeas Challenge received more than 600 applications and of the 30 winners, 73% were minority-owned businesses, 60% were women-owned, and four businesses have been in operation for more than 50 years.

Opportunities like this can have a large effect on a community because small businesses are central to economic recovery. Small businesses typically employ local residents and create a unique sense of place within the community. According to the American Independent Business Alliance, every $1 spent at an independent business generates $.68 back into the local economy. Supporting local businesses, even with just $10,000, can have an extremely positive effect on a small area.

Café con Leche was one of the NEIdea contest winners and happens to be my favorite Detroit coffee shop. Since they opened in 2007, the coffee shop has been a staple of the community – yes, they have great coffee, the staff is friendly, and the environment is pleasant. But most importantly, Café con Leche is a place where people come to gather.

Dia de los Muertos altar at Cafe con Leche

Dia de los Muertos altar at Cafe con Leche

When someone comes in the door, two, three, or four patrons greet the newcomer. People hug, give each other kisses on the cheek, go in for a handshake – it’s a place for residents to see other residents. Elected officials frequent the café to get a great cup of coffee, support local business, and have informal conversations with constituents. Nonprofit and church employees come to work, network, and run into old friends. Teens fill the shop after school to warm up while they’re waiting for the bus or to buy a bag of chips before walking home. This is the type of business neighborhoods need to promote a strong sense of place.

With the $10,000 grant from NEI, Café con Leche will buy equipment and train staff to bring the roasting process in-house. It means a lot of work for the owner, Jordi Carbonell, but hopefully it also means more business.

Supporting great places like Café con Leche and other NEIdea winners can truly enhance a neighborhood and act as a catalyst for small-scale but important community growth.