
A
new generation of social entrepreneurs is transforming the way that we think about business and philanthropy, and in the process, forever changing the conventional wisdom about how to empower individuals in disadvantaged communities. Alex Forrester, co-founder of Jersey City-based
Rising Tide Capital, is one of the young social entrepreneurs who is helping to bring real economic change to economically disadvantaged communities. Below, Alex shares his vision for the future.
AWEARNESS: For readers not already familiar with Rising Tide Capital, what types of services do you provide to disadvantaged inner-city entrepreneurs?
Alex: Rising Tide Capital is a non-profit organization based in Jersey City, NJ whose mission is to equip local entrepreneurs in distressed urban communities with the tools, skills, and resources they need to start and grow successful businesses. We do this by providing hands-on training in business management and planning to local start-up entrepreneurs through our signature initiative--The Community Business Academy. We then provide year-round consulting and advanced seminars to the graduates to guide them through their start-up and growth phases. Once our entrepreneurs are ready to seek business financing, we work with them to prepare their business plan and access the capital they need from our local micro-lending partners. Rising Tide Capital is dedicated to the economic empowerment of low-income communities through entrepreneurship because we know how many hard-working, talented men and women in our communities use business ownership as a way to increase their household income. Our vision is to harness this entrepreneurial energy and use it to transform lives, strengthen families, and grow thriving, vibrant communities from within.
AWEARNESS: What was your motivation or inspiration for launching Rising Tide Capital?
Alex: I co-founded Rising Tide Capital in 2004 with one of my Harvard classmates, Alfa Demmellash. We had been talking for many years about the concept of social entrepreneurship--the idea that you could use business principles to create lasting, sustainable change in the world. When we graduated in 2003, we wanted to find out how we could use our education to participate in addressing some of the sources of suffering we saw in the world. We were particularly interested in the work of Dr. Muhammad Yunus and his pioneering work in micro-finance through the Grameen Bank in Bangladesh. We wanted to see if we could bring his vision to the inner cities of America. Reading his autobiography Banker to the Poor made us realize that all you really need in order to change the world is a vision, the power to communicate it, and a passionate determination to pick yourself up over and over again for what you believe in. On a personal level, Alfa and I both believe that the purpose of life is to learn how to love, and that love is not just a feeling but an action you take in the world. And so, we are living what we believe.
AWEARNESS: What are some of the more inspiring stories of entrepreneurs you've already helped?
Alex: We have about 41 of our graduates from the past year or so who are currently in business. Each one of them (and the 31 other graduates currently in the planning stage) has an amazing story of personal determination and strength in the face of adversity. I think I am most inspired by the incredible women we have worked with. There is a fabulous artist named Jusleine who just opened a greeting card business, and Kim who paints murals for children's day care centers, and Angela who has a computer repair company, and Ruthie who just opened a shoe store down the block from us. Additionally, we make a special emphasis on working with people in our community who are formerly incarcerated. About 20% of our graduates are formerly incarcerated persons. One in particular that stands out is a young African American man named Shawn whose urban fashion company, I think, has the potential to really make it big. He has had to overcome a lot of obstacles on the way, but he credits his time at Rising Tide Capital with giving him the focus he needs to take his company to the next level. If we can help him get there, I will be very, very proud.
AWEARNESS: Ever since Muhammad Yunus won the Nobel Peace Prize in 2006, there's been tremendous enthusiasm about micro-lending arrangements for small businesses without access to typical sources of capital. What types of developments do you see happening in the micro-lending area over the next 12-24 months?
Alex: I think that we will see two major trends. The first is a consolidation in the field. Just like the mainstream financial world, the micro-finance world will benefit from efficiency and economies of scale and will increasingly see the largest micro-finance agencies consolidate their role in the market. Secondly, I think that the cutting edge right now is in the education and business development services side of the industry. One of the first things we learned when we established Rising Tide Capital was that a loan is just more debt unless you know how to use it. We hope to work with our local partners and with the national Association for Enterprise Opportunity to bring innovative, high-quality services to entrepreneurs who need more than just a loan to grow their business. At Rising Tide Capital, we believe that capital comes not just in the form of financing, but in the form of social connections and knowledge as well. We look forward to participating in the development of this side of our industry because that's where we see the biggest opportunity for innovation and value-added services in the future.
AWEARNESS: Who are some of the people that you particularly admire for their dedication to important social causes?
Alex: I think that Oprah Winfrey and Susan Taylor (founder of Essence Magazine) are particularly important examples of the way that individuals can inspire and educate people to make our world a better place. I also deeply admire Professor Cornel West and the work of Rev. Jim Wallis in the way they both understand the positive role religion can play in initiatives for social justice. However, the people I admire most are the many unsung heroes that are working today around the world on issues like sex trafficking, ex-offender recidivism, human rights, and restorative justice. I think the future will depend upon their efforts, and in the power of love and forgiveness to bring peace and reconciliation to our world.
[image: courtesy of Rising Tide Capital]