Neighborhood Economics Framework: a systemic approach to boost immigrant entrepreneurship.
Kevindoylejones co-founder of Social Capital Markets (SOCAP) , an initiative in San Francisco dedicated to accelerate a new global market in the intersection of Money & Meaning, at his 15+years of experience in the field has developed a promising framework with a systems thinking approach to boost immigrant entrepreneurship.
Kevindoylejones mission is to demonstrate that “people in marginalized neighborhoods are actually investable and at not risk if you assemble the proper mix of philanthropy around it”. He believes that a paradigms shift can happen if we, systematically, do human-investments in reversing the case from needy and costly neighborhoods to a mission-driven and purposeful communities.
Neighborhood Economics with extensive connections in the sectors of #impact #investing, #social #entrepreneurship, and #community #development has catalyzed to date millions of dollars to the neighborhood level entrepreneur therefore improving quality of life, building community wealth and accelerating social inclusion. I believe that this success not only builds on the model risk-free investments and the past work on SOCAP with Rockefeller Foundation, Omidyar Network, Halloran Philanthropies, GIIN Group, etc but on the systemic approach “The Neighborhood Economic Framework”: actors and functions to activate the economy of a local community.
The Neighborhood Economic Framework identifies that an entrepreneurial ecosystem counts with 7 actors and functions.
- System Entrepreneur
The System Entrepreneur is a code switcher: able to talk to the city, foundations, banks and financial institutions, investors, idealistic millennial heiresses, and economic development staff; all while retaining credibility and connection to the community. The System Entrepreneur carries a message of, “We can invest in ourselves.”
2. Chief Evangelist
The Chief Evangelist plays the door opening, catalytic, and fund raising role. The CE who resides within the community and anchors institutions take the message to universities ready to invest, sunday school class, civic club, bike or hiking club or reading club, law firm or accounting or other professional partnership. The Chief Evangelist carries a message, often with an entrepreneur and/or The System Entrepreneur, of “We can invest in them.”
3. The Mother Hen
The Mother Hen has the specific business skills of someone leading an accelerator cohort. The Mother Hen which can be a He works alongside in a complementary work with the System Entrepreneur. The Mother Hen identifies and bring potential entrepreneurs into the path to investability.
4. Anchor Institutions
The anchor instituions are the financiers that release the game. Anchor institutions usually benefit of supporting health communities that cost less they can be universities, civic club, sports club, intellectuals club, law or accounting firms, municipalities and public offices, or other professional partnerships.
5. Path to investability
This is lean startup for entrepreneurs meets micro business expansion and startups with first time entrepreneurs who want to expand from a product created in a kitchen to a store front or kiosk. The new model borrows lean startup methodology from Silicon Valley, asking the entrepreneurs to create minimum viable products and find out if people will buy what they have to sell at a price they can make money doing it; asking if there are enough customers and if the person is really cut out to be an entrepreneur.
Is this not the core business of an incubator or any other entrepreneurship program — the linear model of entrepreneurship (linear although is iterative in the process) ???
6. Financial Tools
Friends, Family, Seeds, Growth investments and overall above market rate of return, return for investors above any large bank. So Neighborhood Economics can safely say that, with NE, investors make more and do good, … or they can always choose to make less money and not do good.
7. Loan loss reserves
Cities have often signed on to handle the loan loss reserve, as have community foundations. The more buy in there is — from the existing municipal economic development staff around the concept of wealth creation in marginalized communities –the better everything works.
It seems to me Neighborhood Economics have cracked the code to boost immigrant entrepreneurship. The Framework complies with the conditions for success: based on scientific evidence-based approach, the listed actors are the necessary ones to achieve entrepreneurship at neighborhood level, the actors and functions are general enough to be replicable, the functions are concrete to guide action and serve as directional aid, the actors and functions are not overlapping — therefore enable a comprehensive and structured work.
The Neighborhood Economics Frameworks goes beyond any other linear program for entrepreneurship. The NEF is not waiting for the entrepreneur in the incubation office, NEF has a Mother Hen role leading the entrepreneur into the path to investability.
Looking forward to take ahead the work.