CIFs closely resemble market mechanisms for private enterprise. In this sense, there are several advantages to their use. The bottom line when trying to attract investors to a CIF is rate of return, risk and projected growth. There are without a doubt many social advantages to investing in your own community. But the ethical argument will only go so far when investors are trying to increase retirement savings.
Provincial legislation makes CIFs comparable to other investments.
Secondly, CIFs allow a community to nurture riskier ventures and young industry. Aquaculture did not have a long history in the community. In fact, province wide, it was still relatively new. Uncertainty with regard to technology and the industry's poor track record in Nova Scotia made many banks skeptical of granting credit. In this case, private investment was the most viable alternative for a start-up, with private investors more willing to assume risk than the banks.