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Community Wealth Building Hub

Giving communities the power to develop their local economies.

Community Wealth Building is a people-centred approach to creating a more inclusive economy. It puts the economic development of local communities in the hands of the people who live there by redirecting wealth back into the local economy, and places control and benefits into the hands of local people.

Developed by the Democracy Collaborative in America through their pioneering work in Cleveland, it is championed in the UK by the Centre for Local Economic Strategies, and we believe that this progressive approach to local economics can build wealth and prosperity for everyone.

There are five core pillars of community wealth building:

Plural ownership of the economy

What is Plural Ownership of the Economy?

Many local communities are subject to wealth inequality, where money that is generated within them goes into the pockets of distant shareholders instead of back into the enterprises, organisations and co-operatives that operate within that community.

Money that is spent within these kinds of enterprises, business and co-operatives tends to circulate within the local economy as they are more likely to employ local people, use local suppliers and pay tax.

People in these organisations also have a much bigger stake in the local community, caring more about what happens there. That means by putting the ownership of the economy back into the hands of those that live in the community, wealth is not only locked in place, but it also helps creates a more democratic economy that benefits everyone that lives in that area.

How do we contribute to plural ownership of the economy?

We contribute by helping communities take ownership of local assets in order to bring them back into the hands of the people that live there.

See some examples of our work in action below.

Making financial power work for local places

How do we make financial power work for local places?

Put simply, it means that community wealth building should increase the flow of investment within local economies by harnessing the wealth that exists locally.

There are an estimated 344,500 private business operating in Scotland, providing an estimated 2.12 million jobs. Of those businesses, 93% are “micro businesses” i.e. they employ less than 9 people. It is these kinds of small businesses that are vital to local economies, but for many of them they cannot get access to suitable funding in order to help them grow.

In order to make financial power work for local places, smaller businesses need to grow. To do that they must have access to funding.

How do CEIS help address the finance gap for micros businesses in order to make financial power work for local places?

DSL provide funding to micro businesses and have distributed over £5m in loans over the last two years, which has helped create 481 new jobs and maintain 264. We work hard to try to close this gap so we can make local economies stronger.

Fair employment and just labour markets

What is fair employment and just labour markets?

Local anchor institutions are not only the biggest employers in a community, they have a huge impact on the prospects of local people. Paying the living wage and retaining local talent from lower income areas are crucial to ensuring that local communities thrive and can help improve local economies as a whole.

Across the UK there has been a rise in zero-hour contracts and in-work poverty, meaning that the reality of employment for many in the country is increasingly unstable. In smaller communities, such as North Ayrshire, this increase can have a devastating effect on people and economies.

How do we contribute to the creation of fair employment and just labour markets?

CEIS Ayrshire has been instrumental in supporting North Ayrshire Council’s drive to create fair and meaningful jobs that pay the living wage for local talent. This includes providing training to those that need it, helping people in hard-to-reach areas, and offering business services to local organisations.

Progressive procurement of goods and services

What is progressive procurement of goods and services?

Developing dense local supply chains of businesses likely to support local employment helps to retain wealth locally. These include SMEs, employee-owned businesses, social enterprises, co-operatives and community businesses.

For communities to thrive local resources and wealth must be retained. That’s why the progressive procurement of goods and services is one of the five pillars of community wealth building – by developing supply chains of local businesses, communities will reap the benefits of employment as well as helping to bolster the economy.

How do we contribute to the progressive procurement of goods and services?

Since our inception we have engaged with private and third sector companies to help them add third sector enterprises to their supply chain. We have also helped organisations become part of the supply chain so that their goods and services are available to all.

In 2020/21, 85% of our expenditure was with third sector suppliers, and we regularly track our annual spend to ensure that we use our purchasing power to build capacity and experience within the sector.

Socially productive use of land and property

What is socially productive use of land and property?

By taking over ownership of local land and property assets, local communities are able to better create spaces that generate wealth for local citizens, rather than for private landlords and distant shareholders. When such assets are taken into community ownership, it gives people an opportunity to develop spaces and services that address unique local issues, all whilst helping to contribute to a thriving local economy.

How do we contribute to socially productive use of land and property?

We’ve had a hand in helping many local communities purchase land and property from local governments and private landowners over the years as we believe community ownership is vital to the creation of a more inclusive economy in Scotland.

Additional Resources

If you would like to learn more about community wealth building, its origins and more, then please take some time to look at the following resources:

The Democracy Collaborative
The Centre for Local Economic Strategies (CLES)
The Economic Development Association Scotland (EDAS)
Scotland’s Regeneration Forum (SURF)
Scotland’s Centre for Regional Inclusive Growth 

Want to learn more about community wealth building?

If you are interested in learning more about community wealth building, or if you have a project you would like to assistance with, get in touch now.