Holistic Terms – Using community capital strategies allows the community to set the terms for financing local business. This means that the terms can be based on the total value of a business or real estate development bring to a community. The main focus of the investment may not be to maximize the financial return on the investment. Community-led investments are able to look at an investment from a more holistic perspective.      

Community Buy-In – Community capital by its very nature is based on building community support to move on economic projects. Community-led economic projects will look at the benefits from more than a financial analysis, but from a community benefits analysis. How many local jobs will be produced? How many local dollars will be recycled? How many local tax dollars will be generated. These are questions that are included in the cost-benefit analysis of community-led economic development. 

Community Wealth Building – Community Capital strategies such as crowdfunding and Direct Public Offerings are based on the concept of community-led economic development and inclusive investing that builds wealth for local residents that want to invest in their community. There is a cycle of local investment, growth, and reinvestment that can lead to sustainable community business and real estate development. This cycle can change the relationship of people to their local economy from extractive to inclusive. Crowdfunding can change consumers into investors and brand advocates.

Democratize The Economy – The economy is fundamentally flawed and doesn’t work for all people and especially doesn’t work for underserved and disinvested communities that have been completely left out of the decision making process and as investors. The relationship that people that live in these communities is simply extractive. Community capital provides paths to community-led decision making and inclusive investing that provides pathways for community residents to invest, make decisions, and build wealth as investors, consumers, and brand advocates. 

The Power of Community Capital

Community capital empowers you community in many ways that benefit community-led economic development, inclusive investing, access to capital for local small businesses and real estate development using crowdfunding, direct public offerings, and worker-owned cooperatives that transfer power from the large corporations, developers, and the government to the local community.

Key Takeaways

These tools are in their infancy and many people are skeptical, but these tools should not be feared, but understood and implemented for the empowerment of your community. If you are looking for more information on how to better understand and implement community capital strategies and grab your Free eBook and 10 minute phone call please visit!