Michael Shuman is director of research for <a>Cutting Edge Capital</a>, director of research and economic development at the <a>Business Alliance for Local Living Economies</a> (BALLE), and a Fellow of the Post Carbon Institute. He holds an AB with distinction in economics and international relations from Stanford University and a JD from Stanford Law School. He has led community-based economic-development efforts across the country and has authored or edited seven previous books, including <em>The Small Mart Revolution: How Local Businesses Are Beating the Global Competition</em> (2006), <em>Going Local: Creating Self-Reliant Communities in the Global Age</em> (1998) and <a><em>Local Dollars, Local Sense: How to Shift Your Money from Wall Street to Main Street and Achieve Real Prosperity</em></a>.

1. Local Investing
The Key To
Sustainable Colorado
Communities

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.
11/4/2013
2

3. Rule #1:
Maximize Local Ownership
Breakdown of Retail & Restaurant Spending
In British Columbia (2013)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Nonlocal Spending
Local Spending
2.6 Times Greater
Independents
Chains

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. Federal Reserve of Atlanta
August 2013
“My results…provide evidence that local entrepreneurship matters for
local economic performance… I find that the percent of employment
provided by resident, or locally-owned, business establishments has a
significant positive effect on county income and employment growth and
a significant and negative effect on poverty in the all counties and nonmetro counties sampled.”

7. Other Reasons
Ownership Matters
• Smart Growth
• Tourism
• Entrepreneurship
• Public Health
• Political Participation

8. Rule #2:
Maximize Local Self-Reliance

9. The Zingerman’s Story

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

19. Why Sustainability Requires
Local
• Accountability
• Political Power
• Lower Carbon
Footprint
• Global Models
11/4/2013
19

20. Why Sustainability Requires
Local
• Accountability
• Political Power
• Lower Carbon
Footprint
• Global Models
11/4/2013
20

21. Why Sustainability Requires
Local
• Accountability
• Political Power
• Lower Carbon
Footprint
• Global Models
11/4/2013
21

22. Why Sustainability Requires
Local
• Accountability
• Political Power
• Lower Carbon
Footprint
• Global Models
11/4/2013
22

23. A New Definition of
Sustainability
The ability of a community to provide for its own needs,
present and future, without compromising the ability of
other communities to provide for their needs, present and
future.
11/4/2013
23

24. The Competitiveness of Small
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Self-Employees
<100 Employees
100-499 Employees
500+ Employees

25. U.S. Profitability Rates in 2006
(Net Income/Net Revenue)

26. Why Global Is Becoming Less
Competitive

27. 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.

28. 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.

29. Our Current Investment Strategy

30. Investor Apartheid

31. The Impact of $15 Trillion Shift

32. Cutting-Edge Capital Tools

33. (1) Specialty CD’s:

34. (2) Coop Investment

35. (3) LION’izing

36. (4) Sponsorships

37. Some Local Sites

38. (5) Internet Lending

39. (6) Slow Munis

40. (7) Pre-Selling

41. (8) Local Stock

42. Contradictions in Risk Policy

43. The $100 Exemption

44. The JOBS Act

46. (9) Community Portals

47. (10) Grassroots Loan Funds

48. (11) Investment Clubs

49. (12) Self-Directed IRAs

50. Where Colorado Springs
Can Begin
• Bank Local
• Web Listing
• SD-IRA Deals
• Community Portal
• More Reform

51. The Treasure in Our Backyards

52. The Treasure in Our Backyards

53. The Treasure in Our Backyards

54. The Treasure in Our Backyards

55. The Treasure in Our Backyards

56. The Treasure in Our Backyards

57. The Treasure in Our Backyards

58. The Treasure in Our Backyards

59. For More Information:
Michael Shuman
202-669-1220
shuman@igc.org
www.locatopia.net (soon!)