Embedding rural capital? Community investment funds in Canada and their implications for rural communities

Abstract

ABSTRACT Canada’s rural areas face economic challenges due to globalization and urbanization. These trends lead to wealth being less “embedded” in place as citizens have fewer geographic constraints and rely more on intangible resources for livelihood. To counter these effects, some Canadian provinces allow the creation of Community Investment Funds, which sell business equity shares to residents. Many such provinces also offer tax incentives to spur investments, and some incentive programs have generated attention, but the potential and impact of these programs is difficult to determine. We presents results from a study of Community Investment Fund programs, including a document review and interviews with key informants from across Canada. By assessing program impacts and qualities, we find that these programs positively impact rural economic and community development but require provincial resources to encourage participation and understanding. Further expansion and resourcing of these program could create positive impacts for embedding capital in rural places, facilitating rural prosperity.