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The Local Economy Solution: How Innovative, Self-Financing Pollinator Enterprises Can Grow Jobs and Prosperity
Reinventing economic development as if small business mattered
In cities and towns across the nation, economic development is at a crossroads. A growing body of evidence has proven that its current cornerstone incentives to attract and retain large, globally mobile businesses is a dead end. Even those programs that focus on local business, through buy-local initiatives, for example, depend on ongoing support from government or philanthropy. The entire practice of economic development has become ineffective and unaffordable and is in need of a makeover.
The Local Economy Solution suggests an alternative approach in which states and cities nurture a new generation of enterprises that help local businesses launch and grow. These cutting-edge companies, which Shuman calls pollinator businesses, are creating jobs and the conditions for future economic growth, and doing so in self-financing ways.
Pollinator businesses are especially important to communities that are struggling to lift themselves up in a period of economic austerity, when municipal budgets are being slashed. They also promote locally owned businesses that increase local self-reliance and evince high labor and environmental standards.
The book includes nearly two dozen case studies of successful pollinator businesses in the United States and abroad that are creatively facilitating business and neighborhood improvements, entrepreneurship, local purchasing, local investing, and profitable business partnerships. Examples include Main Street Genome (which provides invaluable data to improve local business performance), Supportland (which is developing a powerful loyalty card for local businesses), and Fledge (a business accelerator that finances itself through royalty payments). It also shows how the right kinds of public policy can encourage the spread of pollinator businesses at virtually no cost."
In cities and towns across the nation, economic development is at a crossroads. A growing body of evidence has proven that its current cornerstone incentives to attract and retain large, globally mobile businesses is a dead end. Even those programs that focus on local business, through buy-local initiatives, for example, depend on ongoing support from government or philanthropy. The entire practice of economic development has become ineffective and unaffordable and is in need of a makeover.
The Local Economy Solution suggests an alternative approach in which states and cities nurture a new generation of enterprises that help local businesses launch and grow. These cutting-edge companies, which Shuman calls pollinator businesses, are creating jobs and the conditions for future economic growth, and doing so in self-financing ways.
Pollinator businesses are especially important to communities that are struggling to lift themselves up in a period of economic austerity, when municipal budgets are being slashed. They also promote locally owned businesses that increase local self-reliance and evince high labor and environmental standards.
The book includes nearly two dozen case studies of successful pollinator businesses in the United States and abroad that are creatively facilitating business and neighborhood improvements, entrepreneurship, local purchasing, local investing, and profitable business partnerships. Examples include Main Street Genome (which provides invaluable data to improve local business performance), Supportland (which is developing a powerful loyalty card for local businesses), and Fledge (a business accelerator that finances itself through royalty payments). It also shows how the right kinds of public policy can encourage the spread of pollinator businesses at virtually no cost."
248 pages, Paperback
First published June 9, 2015
About the author
Michael H. Shuman
28 books13 followersMichael H. Shuman is an economist, attorney, author, and entrepreneur, and a leading visionary on community economics. He’s Director of Local Economy Programs for Neighborhood Associates Corporation, and an Adjunct Professor at Bard Business School in New York City. He is also a Senior Researcher for Council Fire and Local Analytics, where he performed economic development analyses for states, local governments, and businesses around North America.
He is credited with being one of the architects of the 2012 JOBS Act and dozens of state laws overhauling securities regulation of crowdfunding. He has authored, coauthored, or edited ten books. His three most recent books are Put Your Money Where Your Life Is: How to Invest Locally Using Solo 401ks and Self-Directed IRAs; The Local Economy Solution: How Innovative, Self-Financing Pollinator Enterprises Can Grow Jobs and Prosperity; and Local Dollars, Local Sense: How to Shift Your Money from Wall Street to Main Street.
One of his previous books, The Small Mart Revolution: How Local Businesses Are Beating the Global Competition (Berrett-Koehler, 2006), received a bronze prize from the Independent Publishers Association for best business book of 2006. A prolific speaker, Shuman has given an average of more than one invited talk per week, mostly to local governments and universities, for the past 30 years in nearly every U.S. state and more than a dozen countries.
He is credited with being one of the architects of the 2012 JOBS Act and dozens of state laws overhauling securities regulation of crowdfunding. He has authored, coauthored, or edited ten books. His three most recent books are Put Your Money Where Your Life Is: How to Invest Locally Using Solo 401ks and Self-Directed IRAs; The Local Economy Solution: How Innovative, Self-Financing Pollinator Enterprises Can Grow Jobs and Prosperity; and Local Dollars, Local Sense: How to Shift Your Money from Wall Street to Main Street.
One of his previous books, The Small Mart Revolution: How Local Businesses Are Beating the Global Competition (Berrett-Koehler, 2006), received a bronze prize from the Independent Publishers Association for best business book of 2006. A prolific speaker, Shuman has given an average of more than one invited talk per week, mostly to local governments and universities, for the past 30 years in nearly every U.S. state and more than a dozen countries.
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Displaying 1 - 11 of 11 reviews
February 12, 2017
Really compelling, with lots of examples of the ways local economies have invested in local businesses. The takedown of how typical "economic development" is done, through "attract and retain" plans of getting multinational chains in local economies, is particularly great. I was wary that the "self-financing pollinators" of the title would mean unaccountable rich people throwing money at things, but that's not what this book is about at all (thank goodness). Overall, this book made me think more about a) holy shit the globalized economy is the zenith of capitalism nightmare, b) current policy and the flow of state & federal subsidies is SO FUCKED, 3) there is a lot of innovation that can happen at the local level through education, organizing, and people cooperating instead of competing (aka resisting capitalism while also hopefully making enough to live).
Obviously I still have complicated feelings about capitalism, and though I like this local economies focused approach to creating solutions for folks, I don't buy into one of the basic tenets of capitalism that this book does, which is the relationship between being productive and its attachment to worthiness. When applied to nonprofits, I am totally down for the convo about how the model of capital flowing from donor/foundation to nonprofit is not "sustainable" in any real way. That question on grant apps ("how will you be sustainable after this grant ends?" always makes me want to scream (read the blog Nonprofit With Balls for great and funny analysis on this). But the idea that nonprofits need to figure out how to do earned income is also creepy, because not all things orgs (and people!) produce have a concrete dollar value, nor should they.
Obviously I still have complicated feelings about capitalism, and though I like this local economies focused approach to creating solutions for folks, I don't buy into one of the basic tenets of capitalism that this book does, which is the relationship between being productive and its attachment to worthiness. When applied to nonprofits, I am totally down for the convo about how the model of capital flowing from donor/foundation to nonprofit is not "sustainable" in any real way. That question on grant apps ("how will you be sustainable after this grant ends?" always makes me want to scream (read the blog Nonprofit With Balls for great and funny analysis on this). But the idea that nonprofits need to figure out how to do earned income is also creepy, because not all things orgs (and people!) produce have a concrete dollar value, nor should they.
October 14, 2020
This isn’t a typical 5-star rating. The quality of the writing is totally fine, but it’s not a super FUN book to read.
The value of this book is in just how CHOCK FULL it is of useful information, examples, and ideas.
It’s the exact OPPOSITE of a stuffy, theory-filled academic book. Everything is focused through the lens of real-world stories that get your brain churning with ideas.
The author has been evangelizing local economic development for decades, and his experience and know-how show through with how many awesome, real-world examples he can talk about. Not all of them are replicable (he’s very fair about this point), but again — it’s about getting your brain in the mindset of new local economic development ideas.
Should be mandatory reading for anyone entrusted with local economic development funds.
The value of this book is in just how CHOCK FULL it is of useful information, examples, and ideas.
It’s the exact OPPOSITE of a stuffy, theory-filled academic book. Everything is focused through the lens of real-world stories that get your brain churning with ideas.
The author has been evangelizing local economic development for decades, and his experience and know-how show through with how many awesome, real-world examples he can talk about. Not all of them are replicable (he’s very fair about this point), but again — it’s about getting your brain in the mindset of new local economic development ideas.
Should be mandatory reading for anyone entrusted with local economic development funds.
May 24, 2024
This book suffered from trying to be politically palpable to all people. The ideas offered rely heavily on seemingly easy private market fixes when an approach that was bold could make more of a difference. The benefits of supporting locally owned businesses is interesting, but I think he could have added a through policy section at the end.
Also, the quotes seem highly inappropriate. Using quotes that MLK and Mandela used when talked about racial discrimination to talk about supporting local business is cringeworthy at best.
Summary= local business is good. Support local business.
Also, the quotes seem highly inappropriate. Using quotes that MLK and Mandela used when talked about racial discrimination to talk about supporting local business is cringeworthy at best.
Summary= local business is good. Support local business.
February 11, 2024
who know a book on economic development would be so engrossing? the specific examples and strategies outlined in this book were insightful, empowering, and engaging. current economic development is a case of Stockholm syndrome and we need to let go of corporate subsidies. we still have the scars across the country from all the broken promises and wasted capital ( as well as opportunity costs ). the world can be better and we don’t need to wait for the benevolent global corporation that doesn’t exist. i’m looking at you michigan, stop giving ford billions in our tax dollars.
August 16, 2017
Examples from around the world of different ways to grow local, and how these jobs are more cost efficient, because local money stays and reinvests locally, rather than leaving the area. A little wonky, but very interesting.
July 28, 2019
We need to step back and seriously consider many of these ideas.
January 3, 2026
Fantastic walkthrough of how to build your neighborhood. Excited to try to put these principles into practice.
April 1, 2016
This book has a some about why and a lot about how to build local economies, with numerous case studies illustrating Michael Shuman's elaboration of the various ways.
There's a lot of specifics, and the examples are inspiring. I hope to be using this book's suggestions a lot here in Boston, and expect to refer to it often.
There's a lot of specifics, and the examples are inspiring. I hope to be using this book's suggestions a lot here in Boston, and expect to refer to it often.
December 28, 2025
some interesting pieces but disappointingly naive about where he is in history/lack of acknowledgement of technological progress. I don't mean he should have seen one or another technology coming or going or changing but I think he should have acknowledged that technology would change and the impact on local businesses would be uncertain.
August 28, 2015
Excellent resource guide with great examples of how to create th right climate for small business success. Strong analysis of the problems with existing economic development practices.
June 20, 2016
Schuman is a compelling speaker and since this book is mostly stories, I preferred hearing him tell the stories.
Displaying 1 - 11 of 11 reviews