1. Nurturing
Localism
New Ways to Leverage
Capital for Local Gain

2. Three Rules for Local Prosperity
(1) Maximize local ownership of business.
(2) Maximize local self-reliance.
(3) Spread models of triple-bottom line success.
3/12/12 2

3. Rule #1:
Maximize Local Ownership
Impact of $100
Spending (Austin)
$60
$40
$20
$0
Borders BookPeople

4. The Jobs Verdict
Study $ Circulated Locally:
Local vs. Nonlocal Ownership
Austin (2002) 3.5
Maine (2003) 5.0
Chicago (2004) 1.6
Toledo (2004) 4.0
Iowa (2006) 1.6 (Jobs)
San Francisco (2007) 1.4-1.7
Phoenix (2007) 2.9
Grand Rapids (2008) 1.6
New Orleans (2009) 2.0
AVERAGE 2.6

5. Harvard Business Review
July-August 2010

6. Other Reasons Ownership Matters
For Main Street
•
Smart Growth
•
Tourism
•
Entrepreneurship
•
Civil Society
•
Political Participation

7. Rule #2:
Maximize Local Self-Reliance

8. 'Dead-end' Austrian town blossoms
with green energy

9. Rule #3:
Spread Triple-Bottom-Line Business

10. Recent Competitiveness of Local
100% (Jobs in U.S. Economy)
90%
80%
70%
60% 500+ Employees
50% 100-499 Employees
40% 0-99 Employees
30%
20%
10%
0%
96
02
90
92
94
98
00
04
06
08
19
19
20
19
19
19
20
20
20
20

11. Profitability of Local in 2006
(Net Income/Net Revenue)

12. Why Global Is Becoming Less
Competitive

13. How To Nurture Local Business?
Planning Plug the leaks.
People Support entrepreneurs.
Partners Compete through collaboration.
Purse Harness pensions locally.
Purchasing Spearhead “Local First” campaigns.
Policymaking Remove anti-local biases.

14. How To Nurture Local Business?
Planning Plug the leaks.
People Support entrepreneurs.
Partners Compete through collaboration.
Purse Harness pensions locally.
Purchasing Spearhead “Local First” campaigns.
Policymaking Remove anti-local biases.

15. The Biggest Barrier

16. The Impact of Capital Shift

17. The Accredited Investor

18. Tapping the Other 99%

19. (1) Specialty CD’s:

20. (2) Coop Investment

21. (3) LION’izing

22. (4) Sponsorships

23. (5) Internet Lending

24. (6) Pre-Selling

25. (7) Local Stock

26. Recent Legislation

28. (8) Local StockExchanges

29. (9) Grassroots Loan Funds

30. (10) Self-Directed IRAs

31. What Beats the Street?
3/12/12 31

32. Local Investments Beating 5%
•
Equal Exchange
•
Community Grocers
•
Weaver Street

33. Once The Dam Cracks…

34. The Treasure in Our Backyards

35. The Treasure in Our Backyards

36. The Treasure in Our Backyards

37. The Treasure in Our Backyards

38. The Treasure in Our Backyards

39. The Treasure in Our Backyards

40. The Treasure in Our Backyards

41. The Treasure in Our Backyards

42. The Treasure in Our Backyards

43. For More Information:
Michael Shuman
202-669-1220
shuman@igc.org
www.small-mart.org