BackgroundGovernment promotes and believes the best way to repair our current financial system after the stock market bubble and collapse of banking system or so called Great Crash of 2008 is to improve the performance and oversight of global banks and investment firms and Federal Reserve.
FactsA growing number of Americans have questions and doubt about above strategy ( we know there is no federal in Federal Reserve and wondering if there any Reserve in it too) .
Many of us mostly prefer to pull our resources, finances, saving and even retirement savings out of the high financial fliers altogether.
ProblemWe would rather have more control , be able to visit our local business and invest in our communities.
The problem is, we can’t. Old, Outdated federal securities laws have left Main Street dangerously dependent on Wall Street, and overhauling these regulations turns out to be a hidden key to economic revitalization.
Main reasonsThere are three main reasons Americans increasingly wish to invest in the best locally owned businesses:
- Simply, local businesses are economically more beneficial to locals than big box stores and competitions from other cities.
- We understand that these businesses are the real pillars of a prosperous, sustainable economy. A growing body of evidence suggests that every dollar spent at a locally owned business generates two (2) to four (4) times more economic benefit—measured in income, wealth, jobs, and tax revenue—than a dollar spent at a globally owned business. That’s because locally owned businesses spend more of their money locally and thereby pump up the so-called economic multiplier. Other studies suggest that local businesses are critical for tourism, walk-able communities, entrepreneurship, social equality, civil society, charitable giving, revitalized downtowns, and even political participation.
- Many Americans no longer believe Wall Street’s assertions that a global, publicly traded corporation is the safest place to invest their savings. According to data in Statistical Abstract, sole proprietorship (the legal structures chosen by most first-stage small businesses) are nearly three(3) times more profitable than C-corporations (the structures of choice for global businesses). Moreover, a bunch of global trends, like rising energy prices and the falling dollar, are making local businesses increasingly competitive. Meanwhile, Americans are shifting their spending from goods to services, a trend that promises to expand the local business sector, since most services depend on direct, personal, and, ultimately, local relationships.
Majority of economic activities
Locally owned businesses currently generate half of the private economy, in terms of output and jobs. Add in other place-based institutions—nonprofits, co-ops, and the public sector—and we’re talking about 58 percent of all economic activity. So in a well-functioning financial system, we’d invest roughly 58 percent of our retirement funds in place-based enterprises.
Yet local businesses receive none of our pension savings. Nor do they receive any investment capital from mutual, venture, or hedge funds. The result is that all of us, even stalwart advocates of community development, overinvest in the Fortune 500 companies we distrust and underinvest in the local businesses we know are essential for local vitality. This situation represents a colossal market failure.
The good news is that much of the problem could be solved by modernizing securities laws. (I.e CrowdFunding )
Today these laws place huge restrictions on the investment choices of small, “unaccredited” investors—a category in Securities and Exchange Commission vernacular that includes all but the richest 2 percent of Americans. The regulations prohibit the average American from investing in any small business, unless the business is willing to spend $50,000 to $100,000 on lawyers to prepare private placement memoranda or public offerings—thick documents with microscopic, all-caps print that no human being has ever actually been observed reading.
However the SEC Reg A ( Title I and Title II ) , Direct Public Offering (DPO) , Reg D and other which recently been re visited by different states offer new solutions and opportunities to both investors and entrepreneur business owners.
Our goals are to find the best local businesses in all different verticals (B2B and B2C) , promote them, add to their bottom line and introduce them to qualified potential investors and specially local investors.
We know local companies are the best job producers per dollar of investment. Americans are systematically still over investing in Wall Street and under investing in Main Street”. Of the approximately $30 trillion that is invested in stocks, bonds, and other financial instruments, not even 1% touches local businesses. But these companies “comprise more than half the U.S. economy by output and jobs.” Once $15 trillion of the above shifts from global to local investing. That certainly would rock our communities! We’d have more jobs, more local control over our destiny, and more abundance as the dollars circulate locally rather than having the profits exported to absentee owners.