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Friday, August 2, 2013

Airport program helps business dreams become reality for Ethiopian woman

When the pressure to sell cigarettes at her convenience store at East Colfax Avenue and Monaco Parkway reached a tipping point, Muluye Hailemariam listened to her conscience.
"It was a hard decision because it would be good money, but I decided not to sell cigarettes," Hailemariam said. "Making money isn't everything. I have to help the next generation to be healthy."
An immigrant without a college degree, Hailemariam pushed ahead on her principles and willpower, closing her store and starting a custom Ethiopian jewelry business.
A serendipitous encounter with the commercial team from Denver International Airport then shifted her entrepreneurial focus.
The team was combing the community to recruit businesses for the Federal Aviation Administration's Airport Concession Disadvantaged Business Enterprise program, and Hailemariam fit the description perfectly.
"It's an attempt by regulation to try and have opportunity match the makeup of the city," said John Ackerman, DIA's chief commercial officer. "There's a lot of opportunity out here, but it is a lot of work for them."

After going through the Division of Small Business Opportunity certification process — which averages about 60 days — Hailemariam began operating an Ethiopian jewelry kiosk at the airport last winter and is already expanding her horizons with a joint-venture partnership that is opening a Wetzel's Pretzels in Concourse B in January.
Implemented eight years ago at airports across the U.S., ACDBE was designed to level the playing field in a highly lucrative marketplace that is notoriously difficult to penetrate.
More than 350 airports nationwide are assigned a target percentage of gross receipts coming from disadvantaged businesses. DIA's target is 36.3 percent of its commercial receipts by 2014, which is on the high end of the national spectrum.
For each contract opportunity at DIA, an ACDBE participation goal is assigned to help the airport reach its overall goal. With the retail changes underway as DIA refreshes three-quarters of its concession and retail concepts over the next three years, there are more opportunities to incorporate disadvantaged businesses.
There are a variety of ways — such as services, goods or ownership — that a business can quantify attainment of its ACDBE goal.
Hailemariam and Concessions International are in a joint venture with a 40/60 percent ownership, respectively. The venture is one of several small-business success stories at DIA.
Like Hailemariam, Keith Montoya used the airport's kiosk program as a starter business before expanding into an in-line store.
"I decided to jump into the kiosk program to understand the airport and the bureaucratic processes. ... Out here, the volumes are different, so it has been a learning curve," said Montoya, who operates a sports-apparel stand, is opening a second one next month and is part owner of the Steve's Snappin' Dogs restaurant that's set to open in January.
Doing business at DIA presents a unique challenge.
"We have a lot of people who took a lot of risk to make it out here," Ackerman said.
Airport operations require commercial vendors to stay open 365 days a year, 14 hours a day, getting goods delivered through security. Staffing requires multiple background checks and security-badging steps for each new hire.
"I'm still a small business scratching and clawing to make it through," Montoya said. "But the future is definitely looking promising."
A business is eligible to remain in the program unless it hits one of two triggers: $54 million in gross receipts averaged over three years or a personal net worth that exceeds $1.32 million, excluding residence and assets tied to the business.
"You ultimately want to graduate out of the program, but it is going to take me a long time," said Dennis Deslongchamp, who has an ownership stake in three existing airport concessions, with two more on the way next year.
Hailemariam says the kiosk program was "like school," where she conducted her own observational market research on the airport clientele, which is why she is getting into the pretzel business. Even though it is not yet open, she is already dreaming about what is next for her at the airport.
"I say this is where I'm supposed to be," Hailemariam said. "A lot of people have a dream and they just give up. But there's a way."

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