Director's Message
THINK GLOBALLY - INVEST LOCALLY
Given the challenge of the worldwide economic meltdown, the newsletter team selected the theme “The Path to Prosperity in a Time of Crisis”. Ruminating about the theme for my article led me to the realization that the path to prosperity should apply to communities as well as people. Of the six national ROMA goals for Community Action, two (#2 and #3) are for community.
Last year, at the joint meeting of the California Nevada Community Action Partnership and the California Association of Micro Enterprise Opportunities, I heard a speaker, Michael Shuman, who grabbed my attention with a discourse on a topic he called Small Mart, an initiative of investing locally. This topic had been germinating in the back of my mind since the economic tsunami. Simultaneously, my IRA as well as my national and international investments were taking a real beating. Even though I was not ready to address my ruminations, it was a moment of gestalt where I saw the problem and a possible solution at once. And the solution can strengthen the path to prosperity in a time of crisis.
Now, as our communities struggle to stay afloat, we need to consider investing in local enterprises such as the entrepreneurs who were recently honored by the CSU Jack Brown School of Business at the “Spirit of the Entrepreneurs” Awards event in November. In the past we have invested nationally in technology, energy, real estate and pharmaceuticals and look what happened. It is time to take some calculated risks at home. As the hymn says, let’s “brighten the corner where we are”. Strong local areas will contribute to a strong nation. In other words, think globally - invest locally. This was the strategy a long time ago and as Kellogg’s says “taste them again for the first time”.
Most of the local industry in Riverside County is small business. There are over 22,000 of them; most of these businesses are very small, with ten or less employees. CAP Riverside joined with the CSU Women’s Business Center to apply for a JOLI (Job Opportunities for Low Income) grant from the U.S. Department of Health and Human Services (HHS) to address this community of interest, and CAP will apply again because we know it is a worthy effort. Other partners included the Workforce Investment Board, College of the Desert, Riverside Community College and the Department of Social Services. We targeted three communities of the desert with the highest poverty rates. It was a good proposal, but we were denied and we will reapply! In the meantime, our legislators have to remind HHS that California is comprised of more communities than Los Angeles, San Francisco and San Diego when it comes to funding local grants.
In Washington State, a group of farmers organized to pull out of the national commodities market where prices fluctuated continuously. They formed their own market in order to sell their grain; it stabilized the market for them immediately. Another by-product is that local bakeries started buying their product, advertising that the grain came from local farmers, and local consumers flocked to buy their baked goods. In a time when we are not sure of the quality of imported foods, it is extremely comforting to know that your food is grown locally.
I think the universities, working with strong local businesses or such entities as the Inland Empire Economic Partnership (IEEP), should take the lead in developing a local investment strategy. The entrepreneurs, showcased at the Awards event, had great products which would make sound investments.
The investment strategy should enable large and small investors so everyone can play a part in building community. Local banks have a history of seeking investors; I was an investor in Premier Service Bank, which has done very well and is a good community partner in many local efforts like blighted communities. Surely, we all know that land is the basis of all wealth and rebuilding communities is a very good investment and will “brighten the corner where we are”.
CAP Riverside is committed to asset-building through an integrated approach that assists low income families chart their path to prosperity. They go through a process of stabilization, budgeting and saving to purchase an asset (home, business or education): and the next logical step is investing. It is said that money is what we use to get by, but assets are what we use to get ahead.
With a local strategy, investors can get up close and personal with their financial commitments and the local entities managing their investments. Mr. Shuman cited many opportunities for local markets. What we need is leadership, creativity, marketing and an appreciation for where we live our lives. It is time to bring our money home and strengthen the path to prosperity for our communities as well as our families.
Given the challenge of the worldwide economic meltdown, the newsletter team selected the theme “The Path to Prosperity in a Time of Crisis”. Ruminating about the theme for my article led me to the realization that the path to prosperity should apply to communities as well as people. Of the six national ROMA goals for Community Action, two (#2 and #3) are for community.
Last year, at the joint meeting of the California Nevada Community Action Partnership and the California Association of Micro Enterprise Opportunities, I heard a speaker, Michael Shuman, who grabbed my attention with a discourse on a topic he called Small Mart, an initiative of investing locally. This topic had been germinating in the back of my mind since the economic tsunami. Simultaneously, my IRA as well as my national and international investments were taking a real beating. Even though I was not ready to address my ruminations, it was a moment of gestalt where I saw the problem and a possible solution at once. And the solution can strengthen the path to prosperity in a time of crisis.
Now, as our communities struggle to stay afloat, we need to consider investing in local enterprises such as the entrepreneurs who were recently honored by the CSU Jack Brown School of Business at the “Spirit of the Entrepreneurs” Awards event in November. In the past we have invested nationally in technology, energy, real estate and pharmaceuticals and look what happened. It is time to take some calculated risks at home. As the hymn says, let’s “brighten the corner where we are”. Strong local areas will contribute to a strong nation. In other words, think globally - invest locally. This was the strategy a long time ago and as Kellogg’s says “taste them again for the first time”.
Most of the local industry in Riverside County is small business. There are over 22,000 of them; most of these businesses are very small, with ten or less employees. CAP Riverside joined with the CSU Women’s Business Center to apply for a JOLI (Job Opportunities for Low Income) grant from the U.S. Department of Health and Human Services (HHS) to address this community of interest, and CAP will apply again because we know it is a worthy effort. Other partners included the Workforce Investment Board, College of the Desert, Riverside Community College and the Department of Social Services. We targeted three communities of the desert with the highest poverty rates. It was a good proposal, but we were denied and we will reapply! In the meantime, our legislators have to remind HHS that California is comprised of more communities than Los Angeles, San Francisco and San Diego when it comes to funding local grants.
In Washington State, a group of farmers organized to pull out of the national commodities market where prices fluctuated continuously. They formed their own market in order to sell their grain; it stabilized the market for them immediately. Another by-product is that local bakeries started buying their product, advertising that the grain came from local farmers, and local consumers flocked to buy their baked goods. In a time when we are not sure of the quality of imported foods, it is extremely comforting to know that your food is grown locally.
I think the universities, working with strong local businesses or such entities as the Inland Empire Economic Partnership (IEEP), should take the lead in developing a local investment strategy. The entrepreneurs, showcased at the Awards event, had great products which would make sound investments.
The investment strategy should enable large and small investors so everyone can play a part in building community. Local banks have a history of seeking investors; I was an investor in Premier Service Bank, which has done very well and is a good community partner in many local efforts like blighted communities. Surely, we all know that land is the basis of all wealth and rebuilding communities is a very good investment and will “brighten the corner where we are”.
CAP Riverside is committed to asset-building through an integrated approach that assists low income families chart their path to prosperity. They go through a process of stabilization, budgeting and saving to purchase an asset (home, business or education): and the next logical step is investing. It is said that money is what we use to get by, but assets are what we use to get ahead.
With a local strategy, investors can get up close and personal with their financial commitments and the local entities managing their investments. Mr. Shuman cited many opportunities for local markets. What we need is leadership, creativity, marketing and an appreciation for where we live our lives. It is time to bring our money home and strengthen the path to prosperity for our communities as well as our families.
