The SmallMart Solution

1
The Small-MartSolution

• Six Strategies for Prosperity
• Through Homegrown Business

2
Small-Mart Sponsors

• Training Development Corporation (TDC)

3
The Struggle Over Capitalisms

• TINA
• vs.
• LOIS

4
TINAThere Is No Alternative

• Attract Nonlocals
• Prioritize Export-led Development
• Resassure Local Businesses

5
LOISThe Alternative

• LO
• Local Ownership
• IS
• Import-Substituting Development

6
Local Living Economies

• Local Owned
• BOTH Self-Reliant
• Exporting
• Socially Responsible

7
A Movement FOR, Not AGAINST
8
Overview

• I. Three Reasons to Embrace LOIS
• II. Six Action Steps

9
I. Three Reasons to Embrace LOIS
10
1 LOIS Firms Dont Move

• Greater Wealth
• Fewer Catastrophic Exits (eg, Dead Malls)
• Higher Standards

11
Green Wal-Marts?

• Community Shame?
• Sustainability of Global Shipping?
• What Kind of Sustainability?

12
Evolving Concepts of Sustainability
Older
Newer

• Meet the needs of the current generation without
  sacrificing the ability to meet the needs of
  future generations.
• - Brundtland Commission

• Meet the needs of your community without
  sacrificing the ability of all other communities,
  present or future, to meet their needs.

13
2 LOIS Firms Have Higher Economic Multipliers
14
Local Ownership Increases Jobs
Source Iowa State University, 2006
15
Andersonville (IL) Study
16
In Tax Terms

• Because local businesses have higher multipliers
  
• ...LOIS Sales ?more sales taxes
• LOIS Demand ?more property taxes

17
3 LOIS Businesses Fit WithCutting-Edge Eco.
Development Theories

• Smart Growth
• Cool Downtowns
• Creative Economies

18
3 LOIS Businesses Fit WithCutting-Edge Eco.
Development Theories

• Smart Growth
• Cool Downtowns
• Creative Economies

19
3 LOIS Businesses Fit WithCutting-Edge Eco.
Development Theories

• Smart Growth
• Cool Downtowns
• Creative Economies

20
But Is LOIS Competitive?

• Rare Part of
• Economy
• Most Fail
• Most Cant Innovate
• Most Cant Compete

21
Excluded from GDP Data

• Household Work (25 GDP)
• Volunteer Labor
• Black Mkt Econ. (10 GDP)
• Overall (40 GDP)

22
But Is LOIS Competitive?

• Net Births of Firms
• (2000-2001)
• Small 32,000
• Large -200

• Rare Part of
• Economy
• Most Fail
• Most Cant Innovate
• Most Cant Compete

23
But Is LOIS Competitive?

• Recent Performance
• 60-80 New Jobs
• 13-14x Patents

• Rare Part of
• Economy
• Most Fail
• Most Cant Innovate
• Most Cant Compete

24
But Is LOIS Competitive?

• Rare Part of
• Economy
• Most Fail
• Most Cant Innovate
• Most Cant Compete

25
Our Perception of Globalization
26
Why LOIS Lost 3-4 Market Share Over Last Decade?

• Subsidies
• 50 Billion State/Local
• 63 Billion Federal
• Equity Markets Bias
• 1001 Legal Wrinkles

27
Reasons for Optimism

• Buy-Local Movement
• Global Trends

28
Reasons for Optimism

• Buy-Local
• Movement
• Global Trends

29
Reasons for Optimism

• Buy-Local
• Movement
• Global Trends

30
Reasons for Optimism

• Still Other Trends
• Quality-Conscious Consumers
• Home-based Business
• Global Spread of Democracy
• Homeland Security
• Service Economy
• Declining Dollar
• Workforce Effectiveness

• Buy-Local
• Movement
• Global Trends

31
Why LOIS Requires Initiative
32
II. Six Action Steps
33
1 Entrepreneurship Training

• Youth Entrepreneurs
• Mentorship
• Incubators
• Community Schools

34
2 Mobilize Small Businesses

• Direct Delivery
• Flexible
• Manufacturing
• Producer Cooperatives
• Local Malls

35
2 Mobilize Small Businesses

• Direct Delivery
• Flexible
• Manufacturing
• Producer Cooperatives
• Local Malls

Features of the Emilia-Romagna Miracle 53,000
Manufacturing Companies 97 Have Under 50
Employees
36
2 Mobilize Small Businesses

• Direct Delivery
• Flexible
• Manufacturing
• Producer Cooperatives
• Local Malls

37
2 Mobilize Small Businesses

• Direct Delivery
• Flexible
• Manufacturing
• Producer Cooperatives
• Local Malls

38
3 Economic Development by Identifying Plugging
Leaks
39
The St. Lawrence County Model
40
11 Working Group Sectors

• Retail Wholesale
• Services
• Tourism
• Transportation

• Agriculture Food
• Construction Housing
• Education
• Energy
• FIRE
• Health
• Manufacturing

41
Assets

• Land 322,000 under Cultivation
• 224,000 Vacant
• Labor 3,700 Unemployed
• Capital 1 Billion in Dep. Institutions
• 5 Billion in Other Savings

42
Import Dependencies
43
Results Thus Far

• ESCO
• Farm-to-School
• Carp Tournament
• E-Bay Marketing

44
4 Think Local First

• Encourage, Not Require
• Good, Not Perfect
• B2C, B2B, B2G

45
How to Localize Save Money

• Localize Your Home
• Minimize Autos
• Cut Up Credit Cards
• Live Healthy
• Conserve Energy
• Shop Smart

46
Local First Tools

• Coupon Books
• Labels
• Buy Local Weeks
• Local Gift Cards

47
Local First Tools

• Coupon Books
• Labels
• Buy Local Weeks
• Local Gift Cards

48
Local First Tools

• Coupon Books
• Labels
• Buy Local Weeks
• Local Gift Cards

49
Local First Tools

• Coupon Books
• Labels
• Buy Local Weeks
• Local Gift Cards

50
5 Investor Mobilization

• Local Debit
• Create Local Stock
• BFC
• Mercantiles
• Local Exchanges

51
6 Public Policy Reform

• Tax Law ED Priorities
• Big Box Dispersal
• Procurement Prefs
• Securities Law
• Incentives Law

40 Credit
52
6 Public Policy Reform

• Tax Law ED Priorities
• Big Box Dispersal
• Procurement Prefs
• Securities Law
• Incentives Law

53
6 Public Policy Reform

• Tax Law ED Priorities
• Big Box Dispersal
• Procurement Prefs
• Securities Law
• Incentives Law

54
6 Public Policy Reform

• Tax Law
• Big Box Dispersal
• Procurement Prefs
• Securities Law
• Incentives Law

55
6 Public Policy Reform

• Tax Law ED Priorities
• Big Box Dispersal
• Procurement Prefs
• Securities Law
• Incentives Law

50 Billion
56
(No Transcript)
57
Patrick Henry (with minor edits)

• Why stand we here idle? Is life so dear or
  peace so sweet as to be purchased at the price of
  chains? Forbid it, Almighty God. I know not what
  course others may take, but as for me, give me
  community or give me death!"

58
For More Information

• Michael Shuman
• 202-364-4051
• shuman_at_igc.org
• www.smallmart.org