Michael Shuman’s new book combines a broad view of the major forces shaping our economy, with a strong grasp of the economic realities playing out at the local level around the country today. While this book does not speak specifically to social entrepreneurs, it helps to give us a sense of how social enterprises can work with other community builders in the movement to rebuild local economies.

Excerpted with permission of Berrett-Koehler Publishers

“The future of small business, the future of community vitality and the future of humanity depend on a fundamentally new approach to our local economies. The challenge is to find ways to nurture competitive local alternatives to Wal-Mart that can revitalize our local economies and communities.

“Local Ownership and Import Substitution (LOIS). Together these principles suggest the virtues of an economy that takes full advantage of local talent, capital and markets. Local is a niche that goes far beyond food. Where tastes are localized, LOIS firms have the competitive advantage in producing them in just the right way and at just the right time.

“A LOIS economy with many long-term homegrown businesses is more likely to contribute to economic and political stability than the boom and bust economy created by place-hopping corporations.

“Local businesses yield two to four times the multiplier benefit as comparable non-local businesses. They spend more locally, have local management, use local business services, advertise locally and enjoy profits locally.

“A community that has learned how to meet most of its own needs with its own resource is an essential building block for solving many of the world’s most pressing problems.

“The biggest obstacle to the Small-Mart Revolution is apathy—the belief that there is no alternative (TINA) [to globalization and the primacy of multi-national corporations]. A truly revolutionary premise of the Small-Mart Revolution is that each of us has the power, skill and resources to take charge of our own destiny and restore vitality to our communities.

“The Five Building Blocks essential for the Small- Mart Revolution are Local Planning, Local Training, Local Investing, Local Purchasing, and Local Policy making. The most effective Small-Mart initiatives bring all these players together as a team of community builders.”

Small-Mart Revolution Checklist for Entrepreneurs

1. Local Niche. Make local ownership a key part of marketing your business to consumers and investors.

2. Go Green. Make your business an outstanding local environmental citizen by using local renewable resources and reusing nonrenewable resources, and be sure to brag to your customers about your practices.

3. BALLE [or SEA Chapter]. Create a local business alliance so that you’re not alone.

4. Producers Cooperatives. Join existing producers cooperatives or other affinity groups that collectively purchase, advertise or lobby for members. Or start one!

5. Bazaars. Set up and participate in local business mini-malls, whether they’re a weekend farmers’ market or dedicated shopping destination.

6. Direct Delivery. Create or join a direct delivery service affiliated exclusively or primarily with local businesses.

7. Flexible Manufacturing.

8. Buyers’ Cards. Team up with other loc al businesses to create instruments that promote local purchasing,

9. B2B Marketplace.

10. B2G Midwife. Create a business that aggregates small businesses into compelling bids for government contracts.

11. Super-Incubators. Take existing small-business incubators and rededicate them exclusively to local business. Nine out of ten startups that begin within incubators succeed.

12. TINA Collaboration. Break bread with non-local businesses to learn and work together.



Available from BKcurrents.com