Microgrants are proving to be instrumental in helping food entrepreneurs overcome barriers to entry in the packaged food industry. The Market Entry Fund (TMEF), a nonprofit based in St. Paul, is dedicated to supporting underrepresented communities in this sector. This year, several food startups, including a Taiwanese sausage maker and a cookie company, received financial assistance to help them scale their operations.
Among the recipients is Hoyo, a business founded in 2015 by sisters Mariam, Halima, and Asha Mohamed. Their mission was to create job opportunities for Somali women by producing sambusas, beloved deep-fried pastries filled with beef. Since its inception, Hoyo has transformed into a local success story, producing 200,000 sambusas annually for schools across Minnesota. The company also distributes its products to co-ops and supermarkets, showcasing the potential of ethnic foods in mainstream markets.
TMEF’s Micro-Grants Program offers financial support ranging from $5,000 to $20,000 to help food startups navigate the challenges they face. This initiative was launched in 2019 by Kayla Yang-Best, who recognized the need for such assistance while operating a grocery store that allowed local entrepreneurs to sell their products. She saw firsthand the myriad obstacles these business owners encountered, from understanding food inspections to navigating licensing and packaging requirements.
One of the significant challenges faced by startups in the food industry is securing compliant kitchen facilities. Language barriers and cultural differences further complicate the process. Hoyo’s founders have prioritized hiring Somali women who often struggle to find employment due to these challenges. They have implemented supportive policies, such as flexible scheduling and transportation assistance, to create an inclusive work environment.
Hoyo’s journey began at farmers’ markets and eventually led to contracts with multiple school districts, where they now supply sambusas to 24 districts. Despite facing setbacks, such as a product recall in March 2023 due to a contamination issue, the company has remained resilient. They have since improved their cleaning processes and are focused on strengthening their operations and securing the necessary funding for future growth.
Other grant recipients, such as Linko Food, owned by Sasha Szutu and Eddie Shih, are also striving for success in the competitive food market. Specializing in Taiwanese sausages, they aim to expand their reach beyond their two-person operation. With TMEF’s support, they hope to elevate their business to a more sustainable level and ultimately become recognized as a leading provider of Taiwanese sausages in the country. As these food startups continue to grow, they contribute to the vibrant local food movement in Minnesota while showcasing the diverse culinary traditions of their communities.
