Stock markets have been the one constant associated with Globalization or integration of the world’s economies. In fact, a lot of very serious people believe stock markets and the free flow of capital lie at the heart of modern economies. On the other hand, if you look at the unpopularity of stock markets in the BRIC countries (i.e., Brazil, Russia, India, and China) a case could be made for a future without stock markets.
For those tasked with supporting sustainability, this represents an enormous source of strategic uncertainty because capital represents the fuel that companies need to grow. As you know, strategic uncertainty is the potential that any given techno economic event results in the loss of major markets or tanks an important industry to the community and puts the region’s economic security at risk.
Economic development organizations may have to pick up the slack by establishing and managing crowdfunding platforms. The reason this makes sense post-Globalization is that the majority of new jobs are created by small businesses, which do not benefit from public stock markets. Large transnational corporations can either self-fund or issue commercial paper to raise the capital they need so they won’t be hurt.
Any Internet search for crowdfunding platforms will return hundreds of results and you can bet that the number of platforms will continue to rise. The barrier to entry by economic development organization is falling because the emergence of turnkey crowdfunding platform and entrepreneurial spirit of economic developers. It’s just a matter of time before crowdfunding skills will be added to those needed to build strong strategic networks.