A new model of investment

"This Land Is My Land", Michael Horse
(Yaqui, Mescalero, Apache, Zuni)

A new model of investment

Rose Community Development's approach to these six identified shortcomings can be characterized as one which:

1. Creates both investment and social value using the financial models developed by the Harvard Business School's Social Enterprise Project, particularly the blended value proposition developed by Jed Emerson of the Roberts Foundation. We would generically describe Rose Community Development Corporation's approach as a connected, value cluster, investment-driven social capital model. In Jed Emerson's words.
"All social sector financial resources are capital infusions and investments—whether charitable contribution, below market loan or annual gift...Furthermore, in this conceptual world, social value is viewed as having the potential to generate financial and other returns to a variety of stakeholders…we live in a time of evolving concepts regarding capital, investment and return—concepts which may mean more than their initial or historic use might infer."
We also recognize the contribution of the Harvard Project on Indian Economic Development to broadening the definition of "investors" within this hybrid enterprise space. As Kalt and Cornell argue, "An investor may be a cash-rich joint venture partner, but it also could be a tribal member considering a job with a tribal government or with a tribal enterprise, or someone with a new solution to a reservation problem, or a tribal member hoping to start up a feed store or a beauty salon or some other reservation business and employ a couple of family members, or a newly trained school teacher hoping to return to the reservation."
2. Within this context, Rose Community Development Corporation builds on the work of both Emerson and professor J. Gregory Dees of Stanford University who define the financial activities of the modern non-profit and not-for-profit enterprise as a hybrid enterprise space where financial returns and social value are complementary rather than mutually exclusionary. In terms of strategic modeling, this enterprise space is likened to a market composed of multi-dimensional Pareto-optimal exchanges in which investment horizons can be approached with an iterative strategy similar to that presented by Robert Axel rod in his landmark works, The Evolution of Cooperation and The Complexity of Cooperation.