ABSTRACT
Professor Michael Porter argues for a new economic model of inner-city revitalization. He favors private, for-profit initiatives based on economic self-interest, rather than artificial inducements, charity, and government mandates. Such an approach will only work, Porter argues, if it takes advantage of true competitive advantages of the inner city. If companies are to prosper, they must find a compelling competitive reason for locating in the inner city. The first step towards developing an economic model is identifying inner city's true competitive advantages. There is a common misperception that the inner city enjoys two main advantages: low-cost real estate and labor. The inner-city market itself represents the most immediate opportunity for inner-city-based entrepreneurs and businesses. The federal government has made efforts to address the inner city's problem of debt capital. The most important way to bring debt and equity investment to inner city is by engaging the private sector. A final obstacle to companies in the inner city is anti-business attitudes.
