St. Paul, MN
A community-based non-profit organization that helps emerging entrepreneurs develop successful businesses in the Saint Paul and Minneapolis area.
The Neighborhood Development Center, Inc. (NDC) is a community-based non-profit organization that helps emerging entrepreneurs develop successful businesses in the Saint Paul and Minneapolis area. Created in 1993 by Western Initiatives for Neighborhood Development, a community development corporation subsidiary to St. Paul's Western Bank, the NDC strives to improve economic and community conditions through entrepreneurial endeavors. Specifically, NDC targets twelve of the lowest income areas in addition to six ethnic communities. NDC receives half of its funding from corporate and private foundation support, with 37% coming from the Small Business Administration and the State of Minnesota. The remaining funds are derived from earned income. NDC's purpose is to spur economic development in inner city neighborhoods by providing training, lending, and technical assistance to area residents.
NDC reaches the neighborhoods by working with local non-profit organizations that distribute brochures and pamphlets to those interested in starting a business. Interested residents then enroll in a 16-week training course that teaches small business management and marketing. At the end of the course, each participant is expected to submit a written business plan that he or she will use to operate the business. 35% of those in the program actually start their own business. Special training is offered to ethnic minorities who may have business experience in other countries, but do not understand much English or local licensing laws. Another training program called RECIPES for Business Success provides instruction and support to those interested in developing specialty foods businesses. Program fees are determined on a sliding scale, based on household income and family size. 90% of the participants end up paying the minimum fee of $50. 10% of those enrolled in programs end up receiving start-up loans from NCR, typically ranging from $500 to $10,000. Larger loans are available to those with an excellent business plan, strong management, and potential for high community impact.
NCR continues to provide assistance when the business opens. Staff consultants and volunteers provide guidance with bookkeeping, marketing, legal affairs, and management to help the entrepreneurs form a healthy business. NCR’s efforts have shown remarkable results in the past seven years. A 1998 Outcomes Evaluation conducted by the Wilder Research Center study found that NDC enterprises create an average of 3.5 jobs per business and return more than $7 million to the local economy each year in payroll, rent, and other expenditures.
In some neighborhoods, entrepreneurs have become the catalyst for economic development, spurring other growth in long-neglected areas. Alumni entrepreneurs serve as neighborhood role models, providing visible examples of commitment and dedication. Many businesses meet unique community needs, such as photography for weddings and quinceñera celebrations (a Hispanic tradition celebrating a young girl’s coming of age), ethnic foods, and childcare. Businesses can also become community-gathering places where local issues are discussed - the community forums held at Lucille's Kitchen in North Minneapolis are just one example. In his first year in business on St. Paul's West Side, NDC alumni Angel Sanchez encouraged nearby businesses to keep later hours, not only for safety purposes, but also to bring a vibrant atmosphere to the area. The NDC prides itself on nurturing leaders who take an active role in the community through revitalization and development projects.
For more information: Neighborhood Development Center, Inc.