Creating Financial and Social Capital without Institutions — Hooray!!

I had a wonderful visit with the Indianapolis Neighborhood Resource Center in downtown Indy yesterday. Loved learning more about their asset-based approach to building communities.

Loved even more the story that Josh Bowling told a story that I wanted to share here as well. Josh lives in a changing neighborhood — that hasn’t changed yet. They’ve been trying to recruit small store owners drop down roots in the neighborhood. This past summer a local resident decided to open a deli and raise the capital by posting his business plan on Prosper.com. Quickly, $7,000 was raised, mainly by neighbors, and the deli is going to open soon. And, as Josh pointed out, not only did the deli owner raise financial capital but the neighborhood created social capital with all of the loaners really committed to the success of the deli and to ensure that they get their money back. Capital without intermediaries and institutions getting in the way — hooray for the Connected Age!