New Economy Initiative goes after growing entrepreneurs with $9.25M investment

The New Economy Initiative announced plans in TechTown on Monday to help minority-owned automotive suppliers make the transition to other industries, such as aerospace, defense and alternative energy.

The New Economy Initiative is partnering with the Ewing Marion Kauffman Foundation to create the 3-year program. The New Economy Initiative is making $9.25 million in direct cash investment available while the Kauffman Foundation will provide expertise to help the transition, such as staff, materials and its FastTrac and Urban Entrepreneurship Partnership programs.

About $5 million of the $9.25 million will go toward the development of TechTown while another $3 million is designated for the Urban Entrepreneurship Partnership program. Another $1.25 million will go toward Shorebank Enterprises Detroit to establish and manage the Detroit Business Innovation Development Fund.

"This should be North America's laboratory for innovation," says David Egner, interim director for the New Economy Initiative.

FastTrac is a 15-year-old business development program that helps unemployed or underemployed people transition into entrepreneurship through an intensive 3-10 week training program. More than 300,000 people have participated in it throughout the country. The Urban Entrepreneur Partnership helps minority automotive suppliers move into fast-growing sectors, such as aerospace and alternative energy.

Some Detroit-based manufacturers have already made that transition. W-Industries produced 100 percent of its parts for the automotive industry in 2005. Today that number is down to 10 percent. The rest of its production is oriented around aerospace and defense contracts. It's also looking to expand into alternative energy later this year.

"We're looking at companies that employ thousands and thousands of people," says Lizabeth Ardisana, CEO of ASG Renaissance, a Dearborn-based automotive supplier. "That's people keeping their jobs."

Source: David Egner, interim director for New Economy Initiative and Lizabeth Ardisana, CEO of ASG Renaissance
Writer: Jon Zemke