We know that the new economic and ecological realities we face require us to do something different in business, which in some cases also means doing business differently.

Certainly it’s possible to use a conventional business model to manufacture and install solar panels, build windfarms, etc., and we certainly need these kinds of things “at scale,” as they say, sufficient to offset the energy we get from coal, oil, and nuclear. But other kinds of businesses — local, community-based businesses focusing on food, energy conservation, community banking, and other elements of local “economic, social, environmental, and cultural development” — these it seems need a different approach to doing business altogether.

For one thing, getting people to invest in local projects is surprisingly difficult under the conventional business model. It’s just much easier, and assumed to be much safer and more profitable, to “diversify your investments” by putting them in mutual funds, bonds, and publicly-traded companies. What we need are local investments that are either super-secure, or where the risk can be spread over many different enterprises and investors.

Focusing attention on the local economy is one of the central tenets of “financial permaculture,” a movement that is growing out of the tradition of permaculture derived from the work of Bill Mollison and David Holmgren in Tasmania in the 1970s.

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