Organization Issues $500,000 Challenge To Small Businesses In Detroit, Hamtramck, Highland Park
DETROIT (WWJ/AP) - The third and final year of a challenge that awards $500,000 to small businesses in Detroit, Hamtramck and Highland Park is launching.
The New Economy Initiative, a special project of the Community Foundation for Southeast Michigan, said the "NEIdeas: Rewarding Ideas for Business Growth" competition, a two-tiered challenge awarding $500,000 to existing small businesses for their ideas to grow, kicked off on Wednesday.
Thirty applicants will get $10,000 each, while two businesses will each receive $100,000. Applications are due June 1.
The challenge has granted more than $1 million in cash awards to more than 60 existing businesses over the last two years. Nearly 1,200 small businesses applied in 2014 and 2015. Business industries have spanned more than 16 sectors, ranging from barbers to manufacturers, mechanics to bakers and more.
Seventy percent of past winners were minority-owned businesses, 64 percent were women-owned businesses, and 53 percent were both woman- and minority-owned businesses. The businesses range in age from 3- to 93-years-old.
"Over the last two years, we've seen the ripple effect that this challenge has had on so many small businesses in the city," Pam Lewis, Director of NEI, said in a statement. "This challenge is rewarding those whose spirit and determination over the years has kept the city afloat and are crucial to the future success of Detroit."
NEIdeas features two types of awards:
• $10,000 for existing businesses that gross under $750,000 annually with ideas to grow
• $100,000 for existing businesses that gross more than $750,000 and less than $5 million annually with ideas to grow 'big'
Businesses must be three years of age or older by the application deadline of June 1, 2016 to be eligible for an NEIdeas award. All applicants who apply to the challenge will gain connections to other small businesses and entrepreneurs, access to resources, and exposure through NEIdeas' All-Applicant Assistance.
The application for the 2016 NEIdeas challenge is available online at NEIdeasDetroit.org.
After the application period closes, NEIdeas will narrow the pool of applicants and forward the semi-finalists to a jury comprised of entrepreneurs (including past NEIdeas winners) and nonprofit, corporate, and neighborhood partners. The jury will recommend finalists and, ultimately, winners. If selected as a finalist, applicants will be asked to submit additional information about their business. Winners will be notified in the fall.
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