Using Relationships as Resources in Social Impact Investing: Examining a Local Food Movement in Appalachia

To better understand the implementation of investments aimed at producing sustainable food systems across rural counties in Appalachia, particularly during the early phase of the movement, this study explores the perceptions of fifteen organizations that received grant funding. Studying local food systems is of interest because they have the unique characteristic of encompassing multiple aspects of social impact investing, including goals that may be seen as important to Appalachian communities: farming practices that benefit the environment, economic sustainability for local residents, and building the capacity of local organizations. Although grants may provide opportunities to make significant headway toward community economic and social goals, establishing the appropriate relationships may be a challenge for local organizations. Thus the goal of this research is to gain insight into how the grantees used various relationships among community-based organizations (i.e., businesses and farmers, educational institutions, government agencies, intermediary organizations and non-profits) and leveraged different types of capital (i.e., financial, informational, material, and giving capital) in the effort to establish a local food system within Appalachia.