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This paper seeks to examine the role of social and political cohesion in a community economic development context focusing on the emergence and dynamics of social purpose enterprises in facilitating community development and revitalization efforts. The discourse centers on why community economic development is essential and who can best promote community economic development. In answer to these two inquiries, this paper argues the case for the recognition of and advocacy for the expansion of social purpose enterprises, often operating for-profit ventures, as an effective socio-political and economic link between government and free market enterprise.
Key words: Community economic development, economic empowerment, selfdetermination, social entrepreneurs, social purpose enterprises
Throughout the twentieth century, a number of varied approaches have been suggested for improving the socio-political and economic viability of urban communities in the United States. Recently, devolution and deinstitutionalization processes have generated local revitalization efforts in community health services and policing, housing rehabilitation and home ownership programs, and job training and self-employment programs, as well as the implementation of national urban policies such as Empowerment Zone and Enterprise Community programs (Ramsay, 1998; Riposa, 1996; Else and Raheim, 1992; De Leonardis and Mauri, 1992). National chain stores and small- to medium-sized manufacturing/distribution companies are returning to urban communities to take advantage of their economic revitalization initiatives, central locations, and collective wealth opportunities (Porter, 1995). At the same time, community activism is on the rise among neighborhood residents who are determined that the voices of poor and working-class citizens are heard in the policy-making process (Ramsay, 1998, Rabrenovic, 1996; Halpern, 1995; Vidal, 1992). Contemporary community activism is no longer rooted in the leftist and labor union organizing campaigns of the 1930s and 1940s, but is guided by leaders (i.e., social entrepreneurs) of non-profit organizations who have discovered that they cannot merely service or volunteer people out of poverty (Ramsay, 1998; Dees, 1998; Emerson and Twersky, 1996; McLeod, 1997a; Boschee, 1995; Drucker, 1994). Emanating out of the history and evolution of community economic development processes, this expanding third or "social non-profit sector" (Drucker, 1994) challenges us to think critically about its alternating socio-political and economic functions in the community economy. Significantly, the literature has thus far been silent on the crucial role of social and political...