East Grand Forks Economic Development Authority seeing rise in startup businesses

EAST GRAND FORKS — There are a growing number of startups achieving their goal of becoming established businesses in East Grand Forks.

According to Maggie Brockling, East Grand Forks' economic development director, they come from a wide swathe of industries and ages.

“Personal wellness services, insurance, retail, environmental services, food and beverage/hospitality, construction and building,” she said. “The age range of the owners who are starting it are from high school to retiree. So, the large median tends to fall within middle age, but it’s not specific to one age group, which is even more interesting.”

Since January, the East Grand Forks Economic Development Authority has worked with 17 prospects. So far, 65% have converted to live businesses, Brockling said.

In an August press release from the EDA, there were 15 startups mentioned, including five personal care locations, three dispensaries, three service businesses, three retail locations and a restaurant. Brockling believes it signals optimism and opportunity in the community. She has also noticed more buildings filling in and changing owners, as well as a larger number of construction and commercial renovation permits this year. There are more than 200 businesses in East Grand Forks, she said, and about 25% of the local economy is made up of prospects and startups.

Brockling said she discussed the trend at a recent economic development roundtable, and was met with surprise from others who haven’t been experiencing the same kind of growth.

“There was definitely some, ‘Wow, what are you doing that’s different?’” she said.

Brockling doesn’t have an exact answer, but has some guesses. For example, it could be people having the money to put toward starting a business or finally taking the leap on an idea they’ve incubated for a while.

The city's EDA offers concierge service, supporting businesses in various stages. Brockling feels more prospects have been coming to the EDA, perhaps through informal networks, referrals or other people getting the word out.

“I’m glad whatever’s pushing it through is coming our way because we’re here to help,” she said.

She’s also excited that young people are getting involved in business. She used to work at the 701 coworking space in Grand Forks, where she mostly saw younger entrepreneurs. She hopes young entrepreneurs, such as Kaleb Dschaak, CEO of scholastic competition organization Fenworks in Grand Forks, can influence more young people in the region to say, “Hey, he could do it, maybe I could, too.”

There are also existing businesses with owners reaching retirement age who want to sell them, offering another avenue for a young potential business owner.

“It’s a startup in essence for the young person, but it’s already a pre-built business for the existing owner,” Brockling said.

With the city working on a Simplot redevelopment request for proposals and more people moving to the area for Agristo, Grand Forks Air Force Base projects and other large projects, Brockling is hoping for a compound effect of seeing more enterprising people taking the leap to start their company.

“I hope it’s a sign for more entrepreneurism," she said.