Investing in Main Street
http://thekojonnamdishow.org/shows/2012-05-02/investing-main-street
Guest Host:
Paul Brown
"Buy local" is a mantra many embrace. But when it comes to investing bigger sums, most people turn to big-name stocks, bonds, and treasury bills. Author Michael Shuman argues that investing locally not only helps your community--it can pay off. And a new law will soon make it easier to put money into local businesses and organizations. There's even a movement to create local stock exchanges. We explore ideas for shifting your money from Wall Street to Main Street.
Guests
Michael Shuman
Author, "Local Dollars, Local Sense: How to Shift Your Money from Wall Street to Main Street and Achieve Real Prosperity;" fellow, Cutting Edge Capital, the Business Alliance for Local Living Economies (BALLE), and the Post Carbon Institute.
Trexler Proffitt
Assistant professor of Business, Organizations & Society at Franklin & Marshall College
Comments
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Wonderful discussion on bringing more investment into local businesses. I was just speaking yesterday to a small business owner in Montgomery and Prince George's Counties who has done excellent work for me. The company has a great reputation and experience and just needs the kind of investment your guests were speaking about for new equipment to make a significant step forward in their capacity to serve customers efficiently and economically, hire new employees, and help the community.
Even with solid security (the physical equipment) and strong projections for a full return of the investment within a short time, local banks say they won't make a loan because they don't have enough experience with that kind of business.
It's really encouraging to hear about the new developments -- local exchanges, locally-based bank CDs, investment cooperatives, "angel" investors -- that can make possible more of that kind of investment in the local community. I agree with your guests that a lot of us would like to have a way to put a share of our funds into growing local companies and the local economy, when we have an assurance there are good prospects for the investment to succeed ("Think globally, act locally").
Thank you for bringing attention to the issue and the opportunities. The links and other resources you've posted look very useful. I hope you'll have more shows on that subject, maybe with some local business owners who can share their experiences. It's important to all of us to keep local enterprise going.
Crowd sourcing of investments in local businesses is a killer idea. I would love to invest in local businesses but it is very, very difficult to find an opportunity.