Neighborhood Economics: Blending Business Acumen with Social Progress

Embark on an exploration of how heartfelt social change can intertwine with shrewd business strategies, as I, Joel Skene, with our partner Neighborhood Economics, host a series that promises to transform how you view community investment. Prepare to have your perceptions challenged by Michael Schuman, the luminary in local investing, who will unveil insights on the JOBS Act and its capacity to fuel community resilience. This episode is a treasure chest of innovative discussions, from the nitty-gritty of public banking to the creation of Diversified Community Investment Funds, aimed at democratizing local investment opportunities.

During our special series, we engage with Sidney Williams Jr., whose profound knowledge of the nexus of spirituality and economic growth provides an unexpected roadmap for enriching communities. His unique perspective on risk, investment, and the healing power of stories in leadership is an invaluable asset to this dialogue. Join us as we journey through the insights of Melissa Devereaux and Stephanie Swepson-Twitty on creating holistic neighborhoods and empowering businesses of color, along with Joe Minicozzi's expertise in urban policy, and Seth Kaplan's comprehensive approach to community betterment. This series is not just a conversation, but a call to action for anyone looking to make a meaningful economic impact in their backyard.

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Transcript

Joel: 0:33

What if investing in each other could change the world? I'm Joel Skeen with bizradious, and this is the Mindful Marketplace. Welcome back to the Mindful Marketplace here on bizradious. I am Joel Skeen. If this is your first time here with us, welcome to the program where we talk to the entrepreneurs, advisors, industry leaders, investors and economic experts who are questioning the assumption that there's only one bottom line and who are not only solving a market problem to make a profit, but who are also solving a social problem to make an impact. It's where we learn how to connect our money and our businesses to our values, our community and ourselves. Today I'm excited to get to just talk to you guys a little bit about a special series that we have coming up here over the next two weeks, the first two weeks of February 2024, here on bizradious, where we've been able to partner with a really fantastic organization and we got to do a special series of interviews with these conference speakers at the upcoming conference for the organization, neighborhood Economics. Some of you may have remember, just a few months ago I got to interview Kevin Doyle Jones, who's the co-founder of Neighborhood Economics.

Joel: 1:55

Neighborhood Economics is a conference that's held yearly. This is their second year and it's a convening of several different groups of people who are all committed to doing community economic development work and who are committed to doing it using business and using investment dollars to do so. It's going to be at the end of February and it's going to convene together both entrepreneurs and business leaders from this community in San Antonio, texas, specifically the community that's there, that's been disenfranchised, that hasn't had access to the same resources as other communities. So it's bringing in the entrepreneurs and business leaders from these communities. But it's also bringing together impact investors, people who are investing their money not just to get the maximum financial return that they can get, but who are also looking to have those investment dollars go towards doing some good in their neighborhood, going towards doing some good on Main Street in neighborhoods throughout the countries. There's also going to be a convening of the churches and other nonprofits and community leaders there as well. But I was really struck by my conversation with Kevin Doyle Jones about just how exciting, how excited I was by the conference and by the convening of these groups to really do, you know, community economic development work and business at the same time.

Joel: 3:17

As many of you know, I started in social work and I started doing community economic work when I first started my career and I then shifted to business, and this is a really great kind of convening of those two interests for me. So the mindful marketplace here has actually gone ahead and become an official partner with neighborhood economics, and that partnership is yielding several different projects one that's going to be a twice monthly webinar series that we are calling local investment deep dives, with Kevin Doyle Jones and another one of the neighborhood economics conference speakers and author, michael Schumann, where the three of us are gonna talk to a different local or community investment fund and share the information with people on a via live stream. And it also has led to a series of interviews that we're gonna be sharing with you guys over the next few weeks, where I got to interview authors. I got to interview people who have done economic development and community building work, not just here in the US but across the world, with the UN, with other aid networks, through a kind of. It was pretty incredible. I felt very humbled with the people that I got to interview that were so impactful, and today what I wanted to do was just take a few moments to introduce you to the series, to explain why I'm doing this series and to give you a little overview of what you can expect over the next few weeks here. So the first person that I got to interview is actually kind of a hero of mine.

Joel: 4:52

Part of the reason I became interested in local investment, part of the reason that I really wanted to start this show even, is because of the writings of the first guests that I got to talk with. His name's Michael Schumann. He wrote the book Put your Money when your Life Is. He also put. He also wrote books titled Local Dollars, local Sense and Several Others. He is a professor at the business school at Bard College in New York City and he is really what I would call the expert on local investing that is out there.

Joel: 5:30

We had a fantastic conversation. We actually talked so long that that's gonna be a two-parter, but we talked about how the JOBS Act that was passed about 10 years ago has made it easier for grassroots investors to support local businesses. But there's still work to be done to mobilize large numbers of investors and that's what your everyday people who are looking to say for retirement to be able to move that money from Wall Street onto their own local main street. We also talked about spending how spending money locally has this multiplier effect on the economy, generating more income, wealth and jobs, compared to spending at chain stores. We talked about how investing locally can provide a social return in addition to a financial return, and how it supports the local community and creates resilience against market downturns that happen on the national level. Local investments are not limited to startups and they can include established businesses with track records of success, and we also talked about how the financial system has not changed significantly since the 2008 crash, with risky financial instruments that are still being used to this day. We also discussed local, regenerative and impactful investing and how it provides an alternative to the traditional financial system, and how existing developments in local investments, like there's one called the Diversified Community Investment Fund, public banking initiatives and tax credits for local investors, are really changing the game and making it more accessible to average normal people to be able to invest their money locally. Supporting local businesses can lead to income growth for communities and reduce inequality. And we also touched on how the Neighborhood Economics Conference promotes collaboration and partnership in the local economy movement and how the future of community economics really lies in traditional I'm sorry transnational collaboration and sharing our best practices with each other.

Joel: 7:30

Next, I got to interview someone who's really fascinating because he is both a pastor a reverend he worked on Wall Street and has been a CEO and he also runs a church and has been a keynote speaker for groups like the NAACP and his name is Sidney Williams Jr. He wrote a book called Fishing Differently and we had a really great honestly just this, really great connection and really good conversation around the intersection of economics and theology and how it's crucial for understanding how faith and economics impact communities and neighborhoods. We also talked about risk. He at one point said that there's two dirty words risk and return and we talked about how risk assessment and mitigation strategies really are essential in investing in high risk areas and promoting economic development into these neighborhoods that have not only been not invested in but even divested from. We talked about creating space for healing and storytelling that's important for individuals and communities when developing leadership to address trauma and promote personal and social transformation. We talked about his acronym of the Fish Principles, which is faith, intellectual capital, social capital and human capital to provide a framework for community transformation and social impact, and we also discussed how the Neighborhood Economics Conference really serves as a catalyst for bringing together diverse voices and sparking new opportunities for neighborhood restoration and economic development, and we got to interview a woman by the name of Melissa Devereaux who works with an organization that I was really impressed by called Purpose-Built Communities.

Joel: 9:21

Purpose-built Communities is a nonprofit that builds mixed income housing neighborhoods and really puts a focus on having what they call a community quarterback to help lead and direct the efforts to make communities more livable, more diverse and just more enjoyable for the human beings that live there. So we talked about how community development really should start, with the neighborhood as the unit of change. We also talked about taking a holistic approach that addresses not just housing but things like education, community wellness, economic fatality and how all of these things are essential for true neighborhood transformation. We discussed the collaboration and partnerships and how they are key in community development work and how funding and capital challenges are significant barriers to community development. We also got to hear some really wonderful success stories and impact in community development and how they demonstrate the power of investing into our local neighborhoods.

Joel: 10:26

I next got to talk with someone who is local here. It was really great to talk with Stephanie Swepson-Twitty of the Community Equity Fund and of the Eagle Market Streets Development Corporation right here in Asheville. It was so incredible to get to hear her story and the story of our local community, and we got to talk about how partnerships and collaboration really are key for creating meaningful change in our communities. We talked about the access to flexible capital and how it's crucial for businesses of color. We talked about collaboration and innovation and how they are key for the field of neighborhood economics. We talked about the Community Equity Fund that she started and how it provides equity rather than debt to small businesses that are starting in these lower income neighborhoods and how it grows with the burden of you know, it removes the burden of high interest rates by allowing investors to actually have equity and stake in the companies. We also talked about how the Community Equity Fund aims to really build wealth in communities of color and create thriving, resilient neighborhoods here, right here at home, locally.

Joel: 11:40

I got to talk to another really great local by the name of Joe Minnacosi, who is a man he does so much I don't even know how to say it exactly. He's a city planner, he's a researcher, he's a communicator and he works with a group called the Urban Three, which is based here in Asheville as a part of public interest projects and man, that was really a fascinating conversation to really understand the history of our area, the history of Asheville, the history of development here in Asheville. So if you happen to be here in Western North Carolina, definitely check out that episode. With Joe Minnicozzi we talked about the collaboration and cooperation among various stakeholders and how it's crucial for success and community revitalization. We talked about the presence of independent businesses and property ownership and how it contributes to the economic growth and sustainability of our city. We talked about government policies and financial institutions and how they play a significant role in shaping development patterns. We also got to see some really and especially if you watch it on the video we got to visualize the revenue and cost of service and how they're able to really demonstrate this and they can provide valuable insights through this visualization for decision-making and planning in urban development. We talked about how visualizing that data can help reveal scale differences in wealth disparities in communities and how neighborhood economics focuses on improving communities and growing local wealth and how leadership and curiosity really are essential for driving change in the economic system. With him we got to hit on how collaboration between different sectors can lead to positive community development. How systemic biases can perpetuate inequalities and decision-making processes. How equitable taxation is actually crucial for addressing wealth disparities and promoting reparations, and how questioning assumptions and thinking critically truly are important for understanding our reality. So awesome episode with Joe that we got to do there.

Joel: 13:45

The next one I got to do was really I was really impressed with Seth Kaplan. He has done work around the world on the ideas of about fragile states and studying countries that are seen as fragile states, but he's written a new book called Fragile Neighborhoods. That's about the United States and about the fragility that we actually face in many of our neighborhoods. So that was a fascinating conversation really. We got to talk about how neighborhoods play a crucial role in shaping social dynamics and community wellbeing. We talked about the deterioration of relationships and institutions in our neighborhoods and how that contributes to various social challenges. We talked about addressing neighborhood fragility and how it requires a holistic approach that considers physical, social and economic factors. We also talked about incentives and the structures and how they need to be reimagined to prioritize neighborhood success and foster collective action, and how it's important to identify the positive aspects of a neighborhood and build up on the ones that already exist. He also really stressed on how it's important to look for incremental, quick wins to make small but meaningful improvements in our communities, and how collective action is crucial for creating lasting change, and also on how building trust really is key among community members and organizers for successful collaboration.

Joel: 15:15

I also got to talk with Delilah Rothenberg. I was very impressed with Delilah. I've been impressed with all these people. In case you haven't noticed, delilah actually worked on Wall Street at Bear Stearns in 2008 and then went overseas to do community development work and then came back home to found a group that's called the Predistributive Initiative who does research and writes reports on the economy for really creating a better world. We got to talk with her about how worker ownership models can lead to better company performance and more equitable distribution of wealth. We talked about how the financial system needs to account for externalities that it creates and values social and natural capital as well as financial capital. We talked about democratizing business and investing and how it requires individual responsibility and education for us all. We talked about her idea of predistribution and how it focuses on adjusting the system to reinterpret things like risk, return and value, and we also discussed how investors need truly to manage their system level risks and consider long-term sustainability and long-term growth, not just short-term ROI, for their stockholders.

Joel: 16:42

The next interview that I got to do was really special. It was with Marjorie Kelly, who is the author of a new book called Wealth Supremacy. I had actually had this book recommended to me by multiple people, and so when I found out that I was getting to interview Marjorie, I decided to, as quick as I could, read her whole book. I cannot recommend it enough. It was truly eye-opening. It was very thoughtful, it was very realistic and it was also very hopeful in some certain ways too. So definitely go check out the book Wealth Supremacy if you get the chance.

Joel: 17:22

With Marjorie we talked about a lot. We got to talk about how the current economic system is based on what she calls the myth of maximization, which prioritizes the pursuit of unlimited wealth and profit as its hires priority. We talked about the financialization of property, including things like water rates, and how that's led to the extraction of resources and the concentration of wealth into the hands of a few. More and more. We differentiated between things like profit making versus profit maximizing and how making that differentiation is really crucial, as maximizing profits is really the thing that often leads to harmful practices and the neglect of social and environmental considerations, not making a profit but maximizing it. We also talked about how there's a need for systemic change in the economy, as the current system is unsustainable and perpetuates wealth inequality, and we also got to really run down a lot of what this shows about the solidarity economy, which were examples of democratic and regenerative economics, such as worker ownership and community wealth building, and how those offer alternatives to the current extractive model and prioritize the well-being of the people in planet.

Joel: 18:37

We got to talk about how these alternative economic models are often denigrated or seen as inferior, but they actually can be superior in terms of human well-being, sustainability, all while turning a healthy profit. We talked about how public ownership of things like municipal utilities can provide service at lower rates than compared to some owner invested utilities and how really it's about overcoming bias and embracing change and how necessary that is to move towards a more equitable and sustainable economic system. But obviously that change has a cost to it and we made sure to talk about the cost of changing the system and how that may be filled with fear and uncertainty, but the cost of not changing can actually be even greater. We talked about building coalitions and how important it is, for working together at the local level is essential for large-scale system change, and we also talked about how important it is to normalize conversations about economic change and really educate ourselves about the alternative models that exist. We discussed how the work of visionaries as she called them visionaries and geniuses that she is following in the footsteps of in developing alternative economic models should be acknowledged and supported, and she also really. It was really great to get to express some gratitude with her and appreciation for her work and to get to make a personal connection with such a great mind in her work and in her book of Marjorie Kelly. Lastly, I got to talk to a gentleman who is a professor of business at Rutgers and was also another incredibly impressive individual, linnea Richardson. You know just really incredible conversation.

Joel: 20:25

We got to talk about balancing profit with social impact and how it can be crucial in entrepreneurship and economic development and how addressing systemic inequality and creating opportunities for marginalized communities is very essential and a more inclusive form of economics that values both financial returns and social impacts is truly needed. We again talked about things like democratizing ownership and involving community investors to have a positive impact on neighborhoods and communities and creating economic opportunities through business strategies how that can help more people start and sustain businesses. We also talked a little bit about the history of Black Wall Street and the challenges that it faced and how those challenges that it faced before can inform our efforts to rebuild and support Black and other minority-owned businesses, about how stimulating growth sectors and providing access to capital can drive economic growth and it actually creates more opportunities for these entrepreneurs of color. We talked about his homeland of Chicago, the entrepreneurial spirit and community pride and how that helped shaped his view on things. And we talked about how neighborhood economics plays a crucial role for connecting entrepreneurs with capital and resources to scale their ideas. And, lastly, we kind of got to hear a little bit about his teaching students in the business school to use their business acumen to address societal problems and how that can lead to a fulfilling and financially rewarding outcomes.

Joel: 22:00

So these episodes are all gonna be airing the first two weeks of February and they're gonna be coming one after another. They're longer than our normal episodes they're gonna be about twice as long and you're gonna get to hear those all one after the other the first two weeks of February right here on Biz Radio US. You'll also be able to find the archive of those episodes on Biz Radio US, but also on all of the different platforms that we're on. Make sure, if you haven't yet subscribed to us on YouTube, on Spotify, on iTunes, wherever it is that you like to watch and see your podcasts and listen to them please make sure that you subscribe, and always if you give us a review, you give us a rating. That's one of the most helpful things that you can do is to subscribe, like and review. So thank you so much for your time here today. I hope you are looking forward to this as much as I am, and until next time, remember we are each other.