Five community enterprises have been selected to take part in a two-year investigation into the effectiveness of community investment. The projects will examine the problems and opportunities of raising money by issuing shares or bonds directly to investors from the local community.
The five selected organisations will all aim to raise more than £10,000 in shares or bonds, and have all won community backing for their ventures. Their projects will receive funding and consultancy to help them develop their scheme.
The successful organisations are community website Cybermoor in Alston, Cumbria; Hastings Pier and White Rock Trust; Ashington Minors Childcare in Northumberland; FC United in Manchester and community-owned shop Slaithwaite Cooperative Ltd in the Colne Valley, near Huddersfield.
Another group of organisations will receive the same help in September 2009.
Hugh Rolo, head of assets and investment at the Development Trusts Association, said: "An increasing number of communities are finding that local people like the direct proposition of investing in something they can see, touch and benefit from."