Thursday, March 18, 2004
An alternative to Wal-Mart
There are a growing number of successful community-owned retail enterprises operating around the country. Last week, at an event organized by the Middlebury Business Association, more than seventy residents gathered to hear from a panel of speakers and discuss the idea. The panel included environmental author Bill McKibben; Bob Fuller, owner of the Bobcat Caf? in nearby Bristol; Bob Rottenberg of the Greenfield, Mass.-based Cooperative Development Institute; and me.
There are three ways to structure a community enterprise. Consumer cooperatives, which have a long and successful history in food retailing, are one possibility. Another involves the community putting up the start-up capital for a business that is owned and operated by a local entrepreneur. The Bobcat Caf? is a good example of this. It was financed entirely by three dozen Bristol residents, who saw a need for a local watering hole and put up $5,000 each, which was paid back over two years with a modest return and a dining discount.
Finally, there are community corporations. These are capitalized through stock shares sold to local residents (bylaws typically stipulate that stockholders must live in the state) and are run by an elected board of directors. Investors generally expect that much of their return will be in the form of community benefits, rather than financial gains.
An interesting story with some hopeful examples.
posted by chris at 4:50 PM
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