Celebrating 20 Years of Economic Growth: The Impact of the South Valley Economic Development Center
This year marks the 20th anniversary of the South Valley Economic Development Center (SVEDC), a notable celebration for an organization that has profoundly influenced the lives of hundreds of small businesses and families in New Mexico. As one of only seven certified business incubators in the state, SVEDC has played an essential role in fostering entrepreneurship—especially through food.
A Foundation Built on Community Needs
SVEDC is a program of the Rio Grande Community Development Corporation, established in 2005 with a clear vision: to explore how infrastructure could enhance economic opportunity in the South Valley. The community’s response was resounding—there was a strong desire to build wealth through food, reflecting its significant role in New Mexico’s cultural identity. For many residents, food is not merely sustenance but a powerful avenue for entrepreneurship.
Supporting Small Businesses
Over the past two decades, SVEDC has successfully supported over 200 businesses by providing essential resources, including training, technical assistance, kitchen access, and financial guidance. Remarkably, more than 20 of these enterprises have transitioned to brick-and-mortar locations, achieving local and national acclaim. Notable successes include Buen Provecho ABQ, led by James Beard Award nominee Katia Rojo, and thriving local products such as Sabor Salsa and NM Prickly Pear, which are now available in local stores.
These achievements underscore the economic impact of small businesses, which have collectively generated millions in revenue and created or sustained hundreds of local jobs. This contribution is pivotal not only for community wealth but also for increasing public tax revenue.
Addressing Economic Oversights
Despite their significance, small businesses often remain overlooked in broader economic development strategies. In the past decade, New Mexico has invested billions in various economic incentives, such as tax expenditures and Industrial Revenue Bonds. The state’s largest economic incentive, the film production tax credit, allocated over $260 million between 2022 and 2024, yet only supported 2,574 direct jobs, representing less than 0.4% of private employment. A Legislative Finance Committee report indicates that traditional tax incentives can cost $296,000 per job created, compared to more efficient options like infrastructure investment and customized job training.
Conversely, business incubators like SVEDC, WESST, and the Santa Fe Business Incubator have shown consistently strong outcomes. Nationally, 87% of businesses that participate in incubator programs continue to operate after five years, compared to only 50% of businesses overall. SVEDC’s clients represent a diverse array of entrepreneurs, including food truck owners, bakers, and product makers who are dedicated to developing businesses within their communities.
A Call for Strategic Support
If New Mexico aims to diversify its economy effectively, it must prioritize a comprehensive strategy that fosters small business growth. This strategy should focus on increasing access to capital, investing in necessary infrastructure, and providing tailored support for certified incubators and community development hubs.
The Role of Public Investment
Achieving this goal requires sustained public investment. In 2021, Sen. Linda Lopez introduced SB292, advocating for state funding for certified incubators. Although it did not pass, it marked a critical first step toward recognition of the economic value of such programs. Furthermore, in 2019, the New Mexico Legislature demonstrated bipartisan support by passing HB479, enabling counties and municipalities to double their local gross receipts tax for economic development—affirming that homegrown strategies like incubators merit substantial investment.
To support local entrepreneurs and foster economic growth, it is crucial for New Mexico to commit public dollars not just to multinational corporations but also to the grassroots infrastructure that sustains its own residents. Incubators should not be fleeting projects; instead, they are long-lasting economic engines that require permanent funding.
Looking to the Future
As New Mexico charts a path forward, leaders at both state and local levels must prioritize small businesses within the economic vision. This approach will place local entrepreneurship at the center of growth strategies, ensuring that the future of New Mexico’s economy is not a distant goal but an immediate reality.
The next chapter in New Mexico’s economic progression is already unfolding—within our communities, kitchens, and local storefronts. With the right support, these ventures are poised to thrive and significantly contribute to the state’s enduring economic landscape.
For further insights on the importance of supporting small businesses and economic development strategies, visit resources like the U.S. Small Business Administration and Economic Development Administration.
