In today’s world, the need for more inclusive, equitable and sustainable economies has become more pressing than ever before. Across the globe, communities are grappling with the effects of economic inequality, environmental degradation, and social injustice. In this context, the concept of Community Wealth Building (CWB) has emerged as a powerful tool for creating more resilient and sustainable local economies.
As an organisation whose mission is to create a better Scotland through a more inclusive economy, we see Community Wealth Building as an essential force in realising this aim. To that end, our CEO Martin Avila was recently invited by the Ayrshire Growth Deal (AGD) to speak at the Ayrshire Community Wealth Building Gathering at Ayrshire College. A pan-Ayrshire event, featuring members of North Ayrshire, East Ayrshire and South Ayrshire councils respectively, the AGD CWB programme is one of the first regional CWB approaches in Scotland.
The goal of the event was to take a closer look at the progress of CWB across Ayrshire, featuring a panel of leaders and experts in CWB. At the event, Martin shared his insights on how local government can embrace Community Wealth Building to create more resilient and sustainable economies that work for everyone. What follows are his reflections on the event.
The Importance of Building Partnerships
Being asked to speak at events such as the Ayrshire Community Wealth Building Gathering is both an honour and a somewhat daunting task. What sticks out clearly to me though, is that this event underlined the importance of building partnerships between government, businesses, and community organisations to create shared value and promote the creation of local wealth that stays within the community. This is essential because traditional economic models prioritise the accumulation of wealth by a few individuals and corporations, often at the expense of the wider community.
AGD have helped over 600 local businesses and organisations to embed Community Wealth Building into the fabric of what they do. This, combined with local government support of CWB principles demonstrates that when taken together, communities can pool their resources, leverage their collective strengths, and create economic opportunities that benefit everyone. This approach ensures that economic development is more inclusive, equitable, and sustainable, and that local wealth remains within the community.
Rethinking Economic Success
Another thing that struck me about the event and is something that I always feel is important to highlight whenever Community Wealth Building is discussed, is how CWB highlights the need to rethink how we measure economic success. Traditional economic indicators such as Gross Domestic Product (GDP) do not capture the full picture of a community’s economic well-being and can even be harmful to the environment and human well-being. Instead, I believe that the adoption of more holistic measures of economic success that take into account factors such as social and environmental capital and the well-being of all members of the community is required.
Typically, governments and financial institutions prioritise economic capital. But as work in the three Ayrshire councils show, it is important to place equal value on financial, social and environmental capital. The investment of external capital is vital to all communities, but if the profits of that investment are not shared amongst the community, it can have an overall detrimental effect. Too much focus on this kind of capital can be, and in some respects has been, crippling for many communities.
Instead, by placing economic capital on an equal footing with social and environmental capital, communities can thrive.
By adopting more holistic measures, communities can create economic systems that are more attuned to their needs and more responsive to the challenges they face. This approach ensures that economic development is not just about the accumulation of wealth but also about improving the well-being of all members of society.
Case Studies: Businesses Leading the Way in Community Wealth Building
I was asked at the event how Community Wealth Building can help Ayrshire through tough economic times. My response was the best people to answer questions about Community Wealth Building are those who are already practicing it. Not only does that include the local councils that were involved in the event, but also great examples including some of the businesses that spoke at the event that are embracing community wealth building practices and are thriving as a result.
One such example was Arran Dairies, a family-owned for-profit business that focuses on a quadruple bottom line of purpose, planet, prosperity, and people. The company has been able to buy greater buy in from employees on their continuous improvement programme by offering profit sharing.
This challenges that notion which I mentioned earlier, in that all the value is created solely by the people that have access to the economic capital. If a business recognises the value of that social capital (i.e. that your employees, their knowledge and their skills is just as important to your business as the bottom line) you can invest in it. As a result, it incentivises others to be involved in steering the direction of the business.
Another good example was Biosphere Bikes, a social enterprise that provides access to cycling for a wider range of people while also helping to regenerate Girvin. They started small with a seed fund and a shipping container but have now expanded to include a physical shop and workshops for selling bikes all year round. This growth was made possible because they were supported by the local council.
And finally, we also heard from Utopia Computers, which provides high-quality computers to businesses such as Tottenham Hotspur while also serving the local community by fixing people’s phones and laptops. The business also engages in community activities such as gaming nights and helping victims of cybercrime. They also operate a profit-sharing model, underscoring the fact that the better the business does, the better their people do, and the more investment people have in ensuring they deliver a great service to the community.
These businesses all share a commitment to community wealth building. They recognise the importance of investing in social capital and ensuring that the local economy benefits everyone, not just those with access to economic capital. Through practices such as profit-sharing and continuous improvement, these businesses have been able to thrive while also contributing to the local community.
Conclusion
All in all, the event delivered a powerful message, one that I hope is able to spread to other local communities and councils across Scotland.
Across the world, there is a growing movement of businesses and organisations that are adopting this approach and reaping the benefits, with some great examples of it already taking place in other councils across the UK. Community Wealth Building is not just for businesses, but also for local governments and communities as a whole.
It is clear to me that when local governments embrace community wealth building, they can create more resilient and sustainable economies that work for everyone. By building partnerships between government, businesses, and community organisations, local governments can promote the creation of local wealth that stays within the community, rather than flowing out to distant shareholders.
Moreover, rethinking how we measure economic success is also crucial to creating sustainable and equitable communities. Traditional economic indicators such as GDP only provide a limited view of the community’s economic well-being and can even be harmful to the environment and human well-being. By adopting more holistic measures of economic success that take into account factors such as social and environmental sustainability and the well-being of all members of the community, local governments can create more equitable and sustainable economies.
It is important to note that community wealth building is not a one-size-fits-all solution. It requires careful planning and engagement with local stakeholders to identify the unique strengths and challenges of each community and to develop strategies that are tailored to their specific needs. However, as North Ayrshire, South Ayrshire and East Ayrshire Councils have shown, by working together, we can create a world where economic development is inclusive, equitable, and sustainable, and where everyone has the opportunity to thrive.
Community Wealth Building is a powerful concept that has the potential to transform local economies. By keeping money within the community and ensuring that everyone has a stake in it, businesses can create a more equitable and sustainable economy. The businesses mentioned here serve as examples of how community wealth building can be put into practice and the positive impact it can have. And when local governments and communities as a whole embrace community wealth building, they can create more resilient and sustainable economies that work for everyone.