Elgin business incubator to help home-based makers with new downtown retail shop

A new business incubator project in Elgin will help small, home-based makers bring their products to a brick and mortar location in the city’s downtown as soon as this fall.

The Downtown Neighborhood Association (DNA) of Elgin was one of three organizations nationally to receive a $100,000 small business accelerator grant from The Hartford, in partnership with Main Street America.

The grant will fund a hybrid retail and production space for eight to 12 home-based, small scale makers that provides affordable storefronts, shared production facilities and structured business development support.

DNA executive director Jennifer Fukala said that it’s the largest grant offered through the network and it will help local producers overcome the significant barriers small businesses face as they look to move beyond being solely home-based operations.

“This will be a program to help businesses segue from being a pop up vendor at any of our markets to a brick and mortar,” she said. “It’s a big jump to make that transition and we need to help people get ready.”

The model is similar to local programs such as the seasonal Boardwalk Shops in Batavia, but Elgin’s will operate year-round. It will give small businesses an opportunity to test their business models in a real-world retail setting while also providing business mentorship.

Participants in the Made in Elgin Retail Production Incubator will have shared retail space in the front and a work area in the back that can be used both during and outside of business hours for production, packaging and more.

They’ll also receive business development training from experts on topics such as inventory and distribution management. Fukala said she anticipates most businesses would be in the program anywhere from six to 18 months or more.

“Hopefully they’ll graduate from the program and ideally locate somewhere downtown,” Fukala said.

DNA is targeting a couple of locations, including the new The Courtyard at 40 DuPage, a five-story mixed-used redevelopment project with retail and apartments. That space would provide about 1,000 square-feet of retail space and 500 square-feet of production space.

Fukala said the incubator space will also attract visitors downtown, increase visibility for locally made products and strengthen Elgin's reputation as a small-business hub by creating a dedicated space for vendors to produce and sell Elgin-made goods.

DNA is currently in the process of vetting potential participants.

“We’re going to try to curate the best possible product mix that will resonate with the community,” she said.

The grant is part of The Hartford’s multiyear, $2 million Small Business Accelerator Grant program benefiting 15 communities and approximately 1,500 small businesses across the country in partnership with Main Street America.

Elgin businesses and vendors interested in learning more can reach out to DNA at info@downtownelgin.com.