New market

The concept behind the NMTC emerged in the late 1990s, when numerous foundations and think tanks were working to popularize the idea of using business-oriented mechanisms to help disadvantaged communities increase wealth and jobs. For example, business, community, academic, and public sector participants at the 1997 American Assembly meeting issued a report urging business leaders to reinvest in urban areas in the U.S. The final report also pushed nonprofit and government officials to help lead this new effort to open untapped markets through a fostering of “community capitalism.” It defined community capitalism as a “for-profit, business-driven expansion of investment, job creation, and economic opportunities in distressed communities, with government and the community sectors playing key supportive roles.” To accomplish this revival, participants called for improving access to capital (especially through equity investment) and ensuring greater technical assistance for businesses. These were seen as the two key ways of “energizing community capitalism in distressed areas”. The report set out crucial components of the future New Markets initiative. The American Assembly disseminated the final report widely, including sending it to the White House and Congress. Vice President Al Gore, in support of the conference conclusions, stated that, “The greatest untapped markets In the world are right here at home, in our distressed communities.”