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The Commons: Community Capitals Framework & Spiraling Up in Bonavista

Katherine Neil

Faculty of Business, Memorial University of Newfoundland

BUSI 6610/9011 – Small Enterprise & Regional Development

Dr. Brennan Lowery

November 9, 2021
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Abstract

The concept I have chosen to research is Community Capitals Framework & Spiraling Up. While

this is a broad topic, I intend to look at this through the lens of The Commons and its potential to

drive economic development in the Bonavista area. Research Methodology included academic

sources for the exploration and understanding of the concept itself, and secondary sources for

information on The Commons as a business entity, and its potential impact on economic

development in the Bonavista region.

I will explain the Community Capitals Framework & Spiraling Up, elaborate on the enterprise I

have chosen, and link it back to the framework, expanding on the roles The Commons have and

how it contributes to regional economic development, as well as its future potential in this and

other areas.
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Community Capitals Framework & Spiraling Up

Community Capitals Framework

The Community Capitals Framework (CCF) is a lens through which a community’s

economic development efforts can by analyzed from a systems perspective. This is done by

identifying assets that fall under each of the seven types of community capital components, the

interaction and overlap between them, and the impacts resulting from investments made to

them. CCF emphasizes assets and investments over needs and deficits. The seven

components are: natural capital, cultural capital, human capital, social capital, political capital,

financial capital, and built capital. (Emery & Flora, 2006)

Emery, M., & Flora, C. (2006). Spiraling-Up: Mapping Community Transformation with
Community Capitals Framework. Community Development (Columbus, Ohio)
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Natural Capital

Natural capital refers to the natural resources of a community, that already exist and are

not man-made (Jacobs 2011). This includes air, land and landscape, bodies of water,

biodiversity, wind, natural resources, natural beauty, and anything else in the natural

environment (Emery & Flora, 2006; Beaulieu, 2014; Jacobs 2011). Natural capital assets can

contribute greatly to the economy as a driver of tourism and source of natural resources, and

shapes cultural capital (Jacobs 2011, Emery & Flora, 2006).

Cultural Capital

Cultural capital reflects how communities and groups see the world, how they act within

it, how they explain it, and their views on what is possible to change. This includes cultural

aspects such as language, traditions, values, beliefs, art, and everything that shapes lives

through family, history, ethnicity, and spirituality. (Emery & Flora, 2006; Flora et Al., 2016;

Beaulieu, 2014; Jacobs 2011). Cultural capital influences what voices are heard and have

influence in the community, how influence and creativity emerges, and helps understand

community life as a frame of reference (Emery & Flora, 2006; Beaulieu, 2014). When two or

more populations coexist, conflicting cultural capital may exist, complicating influence and

decision making. Investing in cultural capital can help build unity and define community identity,

and enhance tourism. Cultural capital can actively be used as an economic resource in the form

of Museums and Historic Landmarks (Jacobs, 2011)

Human Capital

Human capital is contributed to by the skills, knowledge, talents, and potential of the

people within a community. (Flora et Al. 2016) Individuals’ efforts to enhance their leadership

and interpersonal skills also falls under Human capital, as well as educational institutions and

other training programs. Communities with good Human capital are more resilient to uncertainty
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in the economy, and tend to experience growth and stability (Beaulieu, 2014). Creativity and

leadership are also key in Human capital. Resourcefulness, learning from others, and the ability

to access outside knowledge can help to build Human capital. Community members’ ideas and

willingness to participate helps drive Human capitals’ strong ties to the other capitals (Jacobs,

2011). Human capital also addresses leadership’s ability to act proactively and lead across

differences in shaping the community’s future (Emery & Flora, 2006)

Social Capital

The glue of a community, Social capital is the connections among individuals and

organizations in a community. Well functioning connections can be a resource for mutual benefit

among actors, using reciprocal labour and funds, and shared knowledge and ideas (Jacobs,

2011). Social capital comprises bonding and bridging activities. Bonding refers to the strong ties

and frequent interactions individuals have with friends, family, close coworkers, and neighbors

(Beaulieu, 2011) Bridging reflects the ties that people have with others within the community

with whom they have limited or infrequent interaction, and helps Social capital by bringing

people together who collectively possess more knowledge and ideas than they would acting as

individuals (Jacobs, 2011; Beaulieu, 2014). Vertical linkages offer a channel for actors within the

community to find resources external to the community (Beaulieu, 2014). Social capital is critical

in a community. By studying the interaction between types of capital and outside investment, we

can see the integral part social capital has to play in the community (Emery & Flora, 2006).

Political Capital

Political capital is the leverage to make things happen. It can be possessed by groups as

well as individuals, and is based on power, influence, voice, and connections (Jacobs, 2011). It

also refers to an actors connection to resources, and people’s ability to engage in contributing to

community wellbeing (Emery & Flora, 2006) Political capital can also affect how resources are
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distributed in the community. Efforts to develop existing and create new leadership, and

promote engagement in the community are also Political capital aspects. Understanding the

Political capital of a community can give insight to who posses this power, shapes local

decisions, and essentially calls the shots (Beaulieu, 2014). Access to Political capital can open

doors and push things forward, while a lack of Political capital can stop projects and initiatives

from making progress (Jacobs, 2011).

Financial Capital

Financial capital is comprised of the financial resources and money a community has

available to it for investment purposes rather than consumption purposes. This includes things

such as loan funds, grants, wealth transfers, bond issues, tax abatements, and initiatives like

local taxation to fund community building funds (Jacobs, 2011). This also includes financial

institutions like community development banks, venture capital, and loan funds, whose job is to

inject financial resources and stimulate wealth creation and the community’s economy.

(Beaulieu, 2014). Financial capital potentially impacts the other six capitals, as it drives most

initiatives and is the focus of much community development (Jacobs, 2011)

Built Capital

Built capital refers to the man-made infrastructure which supports activities and the other

community capitals such as buildings, public places, roads, airports, communication technology.

It also includes water and sewer systems, land uses, and how the community is laid out. Built

capital does not stand on its own, but rather allows people to be productive through using it.

(Jacobs 2011; Beaulieu, 2014).

Capitals Working Together

The Community Capitals Framework is more than a theoretical framework, it can aid in

practical community development by serving as a planning framework. It can be used to assess

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the tangible and intangible capitals present in a community to determine strengths to draw from,

and shortcomings where investment is needed. (Aquino et Al., 2018) The framework

Cheryl Jacobs at South Dakota State University suggests that to understand how the

capitals in a community work together, think of it as a community bank with seven accounts,

each with their own opportunities, strengths, and skills. The resource contents of the individual

accounts can be utilized, invested, spent, or squandered and used up, much like traditional

funds. (Jacobs, 2011)

Capitals’ resources can enhance or diminish each other, and be transformed between

capitals. Investing in or prioritizing one capital over another can lead to decapitalizing the others,

and can compromise economic, environmental, or social equity. (Fey et Al., 2006) Investments

in the community can have both positive and negative effects on capitals. An example of such

would be a new factory providing jobs, decreasing unemployment, and increasing human capital

through training, but also negative environmental impact. This presents additional opportunities

from those negative impacts such as mitigation projects for waste and environmental impacts.

(Jacobs, 2011)

Spiraling Up

Investing in improvements to one capital can foster improvement opportunities for other

community capitals (Beaulieu, 2014). The flow of resources between capitals can lead to a

process of resources building on resources to increase community capital capacity and create a

self-reinforcing cycle, and a spiraling up effect. This process of resources attracting other

resources and the success building on itself supports Gunnar Myrdal’s theory of cumulative

causation, which can also run in the opposite direction whereby resource losses foster more

losses, contributing to Spiraling Down of the community (Emery & Flora, 2006). Strategically

investing in capital capacities results in those capitals building on each other, spiraling up, and
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contributing to economic growth in the community (Emery & Flora, 2006). The CCF allows for a

deeper and nuanced understanding of how capitals work together, and the multi-pronged

approach often needed for long term economic prosperity (Beaulieu, 2014).

Emery, M., & Flora, C. (2006). Spiraling-Up: Mapping Community Transformation with
Community Capitals Framework. Community Development (Columbus, Ohio)
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Spiraling Up in Practice

Beaulieu, 2014 outlines a scenario whereby local community leaders reach out to people

in the community for input on a project. That communication effort strengthened communication

between leaders and residents, which became a quarterly meeting with groups to continue input

and feedback, which positively affected social and political capitals. The citizens then pressured

those leaders to invest in local businesses to seed innovation in the community, which the

leaders then do via a program focusing on skill improvements for business owners at risk,

improving human capital. They then established a small loan program by working with local

banks that invests in new ventures. That program and entrepreneurial focus contributed to

retention of educated and creative workers within the community, and an increase in financial

capital capacity (Beaulieu, 2014). This scenario demonstrates how investment in community

capital provides positive shifts which have a spiraling up effect on the community as a whole.

Emery & Flora explore how implementing HTC (HomeTown Competition) using the CCF

in Valley County, Nebraska led to spiraling up of the community. This initiative was proposed to

reverse disinvestments and neglect, and focused on reversing per-capita income, population

decline, and stem outmigration. Funded by grant money, HTC formalized their strategy for

increasing philanthropy through wealth transfers, retain youth in the community, increase

leadership capacity, and strengthen the local economy. These strategy segments together

created asset growth and spiraling up, and reversed the downward spiral they had been

previously experiencing. Community leaders began a leadership development program to get

students involved with other residents in making a difference in the community. HTC worked to

attract young professionals to work toward expanding local businesses, or taking them over

from retiring owners and keep them operating through inter-generational transfer, adding to the

human capital capacity of Valley County and driving job creation. HTC also implemented a local

option tax and helped promote wealth capture options to increase financial capacity.
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Professionals were also trained to foster estate planning donations (increasing their Human

capital) and make philanthropy and giving back more widely known. HTC also set up a

leadership development initiative that participated in skill building involving students and the

general public. These initiatives also increased cultural and political capital by changing

community views, increasing participation in the community, and encouraging people to use

their voice in community affairs. These strategies together addressed the root causes of the

decline, helped foster sustainability, and spiral the county up (Emery & Flora, 2006). A detailed

change of each community capital is listed in their paper, but not included here for conciseness.

The Commons

The Commons is an innovative business centre driving economic development through

community collaboration and helping remove access barriers for entrepreneurs and small

businesses. This is done by providing affordable open coworking space, private office space,

guidance, access to resources, and networking opportunities. Business service offerings include

traditional services like printing and shredding, Wi-Fi connectivity, meeting room and equipment

rentals, and business start-up and growth assistance. (The Commons, 2021)

Launched in the summer of 2018, The Commons’ aim was to be a hub for business

innovation in the Bonavista area, offering co-working space, meeting rooms, office services, and

Wi-Fi. Housed in the Public Building of the Bonavista-Trinity Regional Chamber of Commerce

(BTRCC) at 28 Church Street in Bonavista, The Commons was the first co-working space in the

Bonavista-Trinity region (CBC News, 2018).

Coworking is a work style that uses shared, open workspace targeted at small business

owners, self-employed and work-from-home professionals, as well as travellers. It offers relief

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from the distraction and isolation of working from home, at a fraction of the cost of traditional

office space, and without the responsibility. (The Commons, 2021)

BTRCC President John Norman spoke with CBC on how The Commons was to be a

hub for incubation, business supports, collaboration, and innovation, that helps overcome

entrepreneurial problems such as lack of affordable office space, and help make the Bonavista

area more business friendly. (CBC News, 2018)

The Commons also includes The Marketplace, a retail rental space dedicated to allowing

entrepreneurs to explore ideas, and experiment with products and offerings, to see what works

best for them and their business. It gives makers access to three sizes of low-cost storefront

space, business support services, networking opportunities, and access to tourism customers

through their location on Main Street (The Commons, 2021).

In December 2019, The Commons was looking to add a Community Ecosystem and

Innovation Coordinator to work directly with entrepreneurs, business partners, and stakeholders

to Strategically and Operationally lead The Commons (The Commons Bonavista, 2019).

Linking The Commons to The Community Capitals Framework

The Commons, in acting in its full capacity, to its full potential, and availing of its

partnerships, could have direct impact on the economic development of the Bonavista area, and

foster spiraling up. Its usage of and contribution to individual community capitals are discussed

below. Following this, a broader impact moving forward is speculated.

Regarding Human capital, The Commons can increase human capital directly by

providing assistance with business matters the business owner may not have proficiency in, and

guidance on operations and other logistics. This contributes to the scope and quality of
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entrepreneurial skills of business orders. Sharing common space amongst business owners

allows them to collaborate and combine their talents, knowledge & skills, increasing the range of

human capital they have access to, and growing their own levels. Utilizing provided Human

capital and increasing their own, fosters growth in business owners’ individual businesses.

Fostering a sense of community through shared space, The Commons affects Social

capital by increasing bonding activities by creating ties with other business owners and

community members, and building connections between them. Additionally, The Commons is

fostering bridging activities by creating linkages between business owners and resources

located outside the community such as funding agencies, assistance programs, and access to

industry professionals outside the town.

Cultural capital is also affected by The Commons. Contributing to Entrepreneurs’

wellbeing and fostering a sense of community and support by business owners working in the

same space, which encourages collaboration. This allows business owners’ to change and

enhance their views on what is possible, nurture their creativity, and increase their confidence

and influence. While some conflicting cultural capital may exist between entrepreneurs and

other community members who may be older, disheartened, or set in their ways and averse to

change, Newfoundlanders, especially in rural areas have a strong sense of community and tend

to work together when needed for the greater good of the community.

By using space in the BRTCC Public Building for their location, The Commons are using

Built capital to help business owners by providing access physical space where they would

otherwise not have opportunity, especially when primarily working from home. The commons

itself is using municipal Built capital through their office space and community infrastructure, but

they are also providing built capital to members in the form of their communication technologies

(Office Wi-Fi, Fax machines, and Phones). Another way The Commons is contributing via Built

Capital is The Marketplace, which allocates a portion of their collective retail space to business
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owners to launch and sell their products that they normally would not have had retail space to

do. Brick & mortar physical space is expensive, and The Marketplace helps business owners to

not rely solely on ecommerce, or on community functions like craft fairs to physically sell their

products offline.

Financially, The Commons helps entrepreneurs remove access barriers to business

operating needs such as office space, meeting rooms, and access to technology by charging a

much smaller fee than what the business owner would have to pay for their own traditional office

space. Staff offers assistance in accessing financial capital by helping business owners identify

funding opportunities they may qualify for that they may not have found on their own, and apply

for them. They also help business owners’ bottom line by saving them from having to invest in

their own equipment, technology, and connectivity, which reduces businesses’ fixed costs and

allows owners to concentrate more on investing in their business.

With its close ties to the BTRCC and municipal government through John Norman, The

Commons can also draw from and contribute to Political capital. With business owners’

decreasing their power distance and increasing their influence and voice, they can help foster a

capacity increase in Political capital. This is done by fostering leadership skills among clients,

who then gain those skills and adapt them for themselves. The Commons helps clients build

connections to resources, and increases their ability to engage in contributing to community

wellbeing. The Marketplace also helps with this, as it fosters networking, and increases

business owner’s customer base and public perception.

There also exists other initiatives that The Commons could partner with in the future to

increase their local impact, increase political capital connections in the community, and perhaps

pass clients off to once they have been incubated and are ready to move on to thrive as their

own entity. Bonavista Creative, an initiative which fosters and promotes local unique businesses

through their commercial spaces, is a prime example of this. Bonavista Creative is part of a
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working trio of companies (along with Bonavista Living, and Bonavista Bonavista Workshop)

which work to restore & preserve Bonavista’s heritage and capitalize on it to spur economic

regeneration. Looking to the future, they would make an excellent candidate for collaboration in

economic development projects.

Generally speaking, if The Commons were to operate at capacity and to their full

potential, their vision of being a business incubation space with goals of fostering economic

growth in the community could be met and exceeded. They have the unique opportunity to

incubate local businesses and foster their growth, allowing them to gain traction faster than they

would have on their own, and succeed in the wild once they’re ready. This then builds their

reputation and public image as a worthwhile investment to both private and public institutions

looking to make a difference in the region. Their success also would increase the capacity of

Human capital in the area, as more people would consider staying in the area a viable option.

Finally, seeing the viability and success of The Commons’ business model in the

Bonavista area would help other areas of Newfoundland and Labrador come up with their own

plans to foster economic growth and development in their regions. This would be beneficial to

the province as a whole, especially after the loss of the Regional Economic Development

Boards and their influence on Rural Newfoundland.

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References

Aquino, R. S., Lück, M., & Schänzel, H. A. (2018). A conceptual framework of tourism social
entrepreneurship for sustainable community development. Journal of Hospitality and
Tourism Management, 37, 23–32.

Beaulieu, L. J. (2014). Promoting Community Vitality & Sustainability: The Community Capitals
Framework. Purdue University.

CBC/Radio Canada. (2018, June 30). Bonavista gets even more business-friendly with new
incubator space | CBC News. CBC News. Retrieved November 9, 2021, from
https://www.cbc.ca/news/canada/newfoundland-labrador/bonavista-business-incubator-
the-commons-opens-1.4720832.

Emery, M., & Flora, C. (2006). Spiraling-Up: Mapping Community Transformation with
Community Capitals Framework. Community Development (Columbus, Ohio), 37(1), 19–
35.
Fey, S., Flora, C., & Bregendahl, C. (2006). The Measurement of Community Capitals through
Research. Online Journal of Rural Research & Policy, 1(1).
Flora, C. B., Flora, J. L., & Gasteyer, S. P. (2016). Rural Communities: Legacy and Change. In
Rural Communities: Legacy + Change (4th ed., pp. 1–488). Routledge.
Jacobs, Cheryl, "Measuring Success in Communities: The Community Capitals Framework"
(2011). SDSU Extension Extra Archives. 517. Retrieved November 9, 2021, from
https://openprairie.sdstate.edu/extension_extra/517

The commons. The Commons. (n.d.). Retrieved November 9, 2021, from

https://www.thecommonsbonavista.com/.

The Commons Bonavista. (2019, December 3). Retrieved November 9, 2021, from
https://www.facebook.com/TheCommonsBonavista/.