NEI nears second round of grant giving

The New Economy Initiative is about to reach its fundraising goal, having raised $33 of $40 million in funding from local, regional, and national foundations. NEI is entering a three year-long period of grant-giving and support for the region's entrepreneurs. The group is planning a new-look NEI, one that will build on and improve the already successful first round of grant programs that began in 2008.

One planned change is a new focus on pre-existing businesses throughout southeastern Michigan. With so much attention being focused on the region's startup scene, NEI is crafting a contest to reward existing businesses that have the potential to grow. Still in the planning stages, the group hopes to have the contest ready for March.

Still, startups remain at the center of NEI's economy-stimulating strategy. The group's territory includes all of southeastern Michigan with a focus on Detroit. NEI executive director Dave Egner says that one of the reasons for this focus is that, as far as he can tell, there are more organizations servicing Detroit entrepreneurs than anywhere else in the world. That network of organizations allows NEI to more effectively distribute grants to promising entrepreneurs.

Grants are available to entrepreneurs of every stripe, says Egner. "Our focus is industry-agnostic. When we tried to pick sectors, we didn't get the outputs. We've been industry-agnostic since 2009."

NEI is hoping that the modifications planned for its second round of funding will improve on their already impressive numbers.

The New Economy Initiative launched in 2008 and has since awarded $76 million in grants to local entrepreneurs. The program has helped start over 675 new companies and created over 8,000 new jobs in southeastern Michigan. NEI has also helped support BizGrid, an infographic that breaks down Detroit resources for small businesses.

Source: Dave Egner, executive director of New Economy Initiative
Writer: MJ Galbraith

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MJ Galbraith is Model D's development news editor. Follow him on Twitter @mikegalbraith.

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