Everyone’s heard the call to “buy local.” Now a growing movement is urging people to take grass-roots support even further—and invest local.
The idea: Instead of putting their investment dollars in big, distant companies, people should bet on the shop around the corner, by giving it a loan or buying a stake in it through a special stock offering. Small businesses, for their part, should lobby their neighbors and customers for support if banks don’t come through with financing.
Everybody wins, advocates say. Investors can see a modest profit on their money, and businesses can get badly needed cash. What’s more, the community itself benefits from added jobs and the presence of a healthy business in town
via Entrepreneurs Turn to a New Source of Funds: Neighbors – WSJ.