Framework for a Local Economy

Community ConversationsGrey-to-Green Festival

September 11 and 25, 2010

Questions We’re Going to Address

• What is a local economy?• How does one participate in a local economy?• What is a business model?• What is a business ecosystem?• How do resources flow in a business

ecosystem?• How does one implement a local economy?

What Is a Local Economy?

• Meets the needs of community / neighborhood / rural area members

• Addresses Bottom of Maslow’s “Hierarchy of Needs”– Physiological

• Air• Water• Food• Shelter / Clothing• Fuel / Energy

– Safety• Security• Health• Education• Paid Work

Maslow’s Hierarchy of Needs

How Does One Participate in a Local Economy?

• Buy• Believe• Advocate• Administer• Invest

What Is a Business Model?

Shows how an organization:• Focuses on who is in the center – the product or the

people• Generates enough revenue to cover or exceed

expenses• Utilizes local assets and resources without losing them• Links throughout the value chain to solve the “last

mile” problem and meet needs

EVERYONE has one!

What Is a Business Ecosystem?

• Integrates work flow with resource flow with results• Facilitates transactions for liquidity, value, and incentive

– Money / currency– Alternative currencies, coupons– Time banking– Carbon credits, renewable energy credits– Volunteering– Employment / Contracting

• Targets “needs met” as the success metrics– Calories– Kilowatts– Gallons– Cubic Feet– Units

How Do Resources Flow in a Business Ecosystem?

• Maps – What do we have and where is it?• Models – How do the pieces fit together?• Information – How do we see what’s going on?• Know-how – What do we do now?• Portfolio – How should we invest in our

community / neighborhood / rural area?

How Does One Implement a Local Economy?

• Establish Collaborative Structure– Policy Council– Buying Club– Community Cooperative (Food, Energy, Housing, etc.)

• Conduct Asset Inventory• Target “Needs Met” Metrics• Identify Where, When, and How People Can Participate

– Time and Intelligence

• Develop and Execute Plans to Meet Needs through Participation and Utilization of Assets

• Apply Value-Based Incentives for Participation– 25% in for 75% Leverage

The Starfish and the Spiderby Rod Beckstrom and Ori Brafman

How Tea Party Organizes Without Leaders – National Journal Magazine

We Build the Road as We Travelby Roy Morrison

Mondragon, A Cooperative Social System

“We Are Entering the Century of the Small…”

Jack Ma: Alibaba Group