EDA University Center for
Regional Economic Innovation

Locavesting Leading to Prosperity in Michigan

Posted Tuesday, April 1, 2014

Locavesting is a type of crowd-funding that has the potential to provide a local capital pool to support local and regional economic development. Through locavesting, research has been conducted that has shown that in order to have a successful economy with high per capita income, local areas should incorporate facilities that serve to entice innovation and talent. In order to acheive prosperity, a region needs to focus on support for entrepreneurs and give them opportunities to shape their ideas into real businesses. The law that supports this was recently signed by Governor Snyder, and is entitled the Michigan Invests Locally Exemption (MILE) law. MILE explicitly allows Michigan residents to invest in local businesses through crowdfunding. According to CrowdFund Insider, the law "allows local businesses to raise the funds they need to grow their business locally by enabling investment crowdfunding." This will give local entrepreneurs a head-start in their business ventures, allowing residents to support their business in exchange for a return on their investment. An additional bill is being drafted to create a structure for Michigan stock exchanges. After an exchange has been made it "would be able to function as a central marketplace for Michigan businesses and residents-a place where investors and entrepreneurs alike could connect to buy, sell, trade, and resell in-state stocks" (CrowdFund Insider). To learn more about locavesting, stay tuned for Angela Barbash and Barry Lipscomb's upcoming Co-Learning Plan, which will be presented at the 2014 Innovate Michigan! Summit and on the web.