OPINION: Homegrown growth: Why small business incubators deserve real investment

This year marks the 20th anniversary of the South Valley Economic Development Center (SVEDC) — a milestone for our organization and for the hundreds of small businesses and families whose lives have been shaped by it.

SVEDC, a program of the Rio Grande Community Development Corp., is 1 of only 7 certified business incubators in New Mexico. When it opened in 2005, it housed the state’s largest community commercial kitchen. But it began with a question: What kind of infrastructure could best support economic opportunity in the South Valley? The overwhelming community response was clear — build wealth through food. Food is central to our identity as New Mexicans. For many, it’s also a powerful path to entrepreneurship

In the two decades since, SVEDC has supported over 200 businesses with training, technical assistance, kitchen access and financial guidance. More than 20 of those businesses have grown into brick-and-mortar locations. Some, like Buen Provecho ABQ, led by James Beard Award nominee Katia Rojo, have earned national recognition. Others, like Sabor Salsa and NM Prickly Pear, are now sold in local stores.

Collectively, SVEDC clients have generated millions in revenue and created or sustained hundreds of local jobs — contributing to both community wealth and public tax revenue.

These outcomes highlight a larger truth: Small businesses are the backbone of New Mexico’s economy. They employ more than half the state’s private workforce, pay taxes, hire locally and reinvest in their communities.

Yet they are often overlooked in our economic development strategy.

Over the past decade, New Mexico has spent billions on incentives like tax expenditures and Industrial Revenue Bonds. The state’s largest economic incentive — the film production tax credit — awarded over $260 million between 2022 and 2024, yet supported just 2,574 direct jobs, less than 0.4% of private employment. A Legislative Finance Committee report found that traditional tax incentives cost $296,000 per job created, compared to $97,000 for infrastructure and just $54,000 for customized job training.

Meanwhile, business incubators like SVEDC, WESST and the Santa Fe Business Incubator deliver strong returns. Nationally, 87% of businesses that go through incubators are still operating after five years — compared to just 50% overall. Our clients include food truck owners, bakers and product makers — people growing businesses in the communities they call home.

If we’re serious about diversifying New Mexico’s economy, it’s time to build a strategy for small business growth — one that includes access to capital, infrastructure investment and targeted support for certified incubators and community development hubs.

To get there, we need sustained public investment. In 2021, Sen. Linda Lopez, D-Albuquerque, introduced SB292, which proposed state funding for certified incubators. Though it didn’t pass, it was a vital first step. And in 2019, the Legislature showed bipartisan support by passing HB479, allowing counties and municipalities to double their local gross receipts tax for economic development — affirming that homegrown strategies like incubators deserve real investment.

If New Mexico can commit public dollars to multinational corporations, we can also commit to the infrastructure that supports our own residents. Incubators are not one-time projects — they are long-term economic engines that deserve permanent funding.

As we look to the future, we urge state and local leaders to think bigger — and more locally. Let’s not just include small businesses in our economic vision — let’s center them.

Because the future of New Mexico’s economy isn’t far away. It’s already here — in our neighborhoods, kitchens and storefronts — ready to grow with the right support.