Ontario s Entrepreneurship Network Strategy Review and Renewal AMO meeting Tuesday, February 19, 2013

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1 Ontario s Entrepreneurship Network Strategy Review and Renewal AMO meeting Tuesday, February 19, 2013

2 Context for Action 2 Entrepreneurship and innovation are at the heart of the government s jobs and economy strategy. Ontario has made tremendous strides towards building a world-class network to support entrepreneurs and firms, and offers a comprehensive suite of services for entrepreneurs and firms across the province. However, the innovation and entrepreneurship landscape is constantly changing, and client needs and priorities evolve over time. Jurisdictions are focusing resources to help entrepreneurs start and grow globally competitive firms to spur economic growth and job creation. In North America alone, more than 20 US States are starting new programs to support entrepreneurs and start-ups. More than ever there is a need to challenge the status quo and seek out ways to further improve.

3 Resource Description / Function SMALL BUSINESS ENTERPRISE CENTRES (SBECs) A network of SBECs support Main Street businesses in all sectors in the start-up and early growth phase. Provincial-municipal partnerships that provide services to support business start-up and early stage growth for Main Street entrepreneurs in all sectors of the economy. Support from SBECs include: one-on-one consultations with qualified business consultants, business plan support (how to write a business plan, reviewing business plans), information on permits, licences and other government requirements, guidance on support programs available from all levels of government, hosting seminars and networking events on a wide range of business topics (e.g. sources of financing, e-business and social media), providing resource material (e.g. trade directories), and access to local experts like lawyers and accountants. There are 47 SBECs across 57 locations. BUSINESS ADVISORY SERVICES (BAS) Ministry staff focused on helping entrepreneurs who want to grow their businesses here and abroad. Ministry staff across the province provide services to leading growth companies such as access to government services; market development support, including export assistance; financial analysis including benchmarking tools; access to financial assistance; support for innovation and new technology; networking and expert advice. There are 12 BAS offices in Southern Ontario ONTARIO NETWORK OF EXCELLENCE (ONE) A comprehensive innovation and commercialization network designed to help Ontario s innovation-based businesses and entrepreneurs to be globally competitive. Regional Innovation Centers (RICs) Ontario Centres of Excellence (OCE) MaRS Regionally-based, not-for-profit entities that serve as focal points for innovation-based talent, infrastructure and investment capital, RICs unite business and community leaders to champion the development of regional innovation ecosystems. Governed and staffed by entrepreneurs, RICs deliver innovation and commercialization programs and services to support innovation- and technology-based firms. Support from RICs include: entrepreneurial training, access to market intelligence, helping clients to become investment ready, advice and mentorship (typically from serial entrepreneurs), access to capital, etc. There are 14 RICs across 17 locations. OCE is provincially-focused and manages the Industry-Academic Collaboration Program (IACP) on behalf of the Network. Through the IACP, OCE: (i) supports knowledge and technology transfer; (ii) facilitates partnerships between industry and academia; and (iii) fosters the training and development of the next generation of innovators and entrepreneurs. OCE staff are located across Ontario, and in many cases are co-located with the RIC. In addition, OCE works with the Research Institutions and Technology Transfer Offices to deliver the IACP. MaRS is provincially-focused and manages the Business Acceleration Program (BAP) and Investment Accelerator Fund (IAF) on behalf of the Network. In addition, MaRS serves as the RIC for downtown Toronto. MaRS is one of North America s largest urban research parks, and Ontario s flagship convergence centre for business, science & technology and venture capital.

4 SBEC Support for Municipalities and Regions The SBECs are a partnership between the Province of Ontario and local municipalities. SBECs are managed locally, coordinated provincially, supported by public and private sector partners and networked province wide. SBEC staff are primarily municipal employees and in some cases, employees of a local not for profit organization. Ontario provides annual core funding of $4.3M to the SBECs, representing 40 per cent of the total funds received. In addition: Municipalities provide annual funding support totalling approximately $5.1M to the SBECs, including in-kind support. Local private sector funding support makes up nearly $0.8M annually. Private funding support is primarily directed to events hosted by the SBECs.

5 Goals & Key Outcomes 5 Goals To realize Ontario s vision of being one of the top jurisdictions in the world at supporting innovation and entrepreneurship, by challenging the status quo and exploring what must be done to ensure Ontario s innovation and entrepreneurship network, programs and services remain best-in-class. This includes: Strengthening the suite of programs and services currently being offered; Improving client access to programs and services through better provincial and regional coordination; and Ensuring innovation and entrepreneurship partners are collaborating in new ways and creating new synergies to strengthen the network and Ontario s regional ecosystems. Key Outcomes To improve the performance of the network to maximize the economic impact of Ontario s innovation and entrepreneurship programs. To streamline and improve client access to all available resources at the regional level including federal programs & services (where applicable). To work with all levels of government and other key stakeholders to strengthen regional collaboration among innovation and entrepreneurship partners to better coordinate resources. To align Ontario s regional innovation and entrepreneurship ecosystems with global best practices. To explore new opportunities to leverage support from the private sector. To address any weaknesses in the suite of programs and services to ensure the needs of clients in today s innovation and entrepreneurship landscape are being met or exceeded.

6 Challenging the Status Quo Any adjustments to Ontario s innovation and entrepreneurship network, and its programs and services will be made based on: UNDERSTANDING THE CURRENT ENTREPRENEURSHIP ECOSYSTEM UNDERSTANDING THE ENTREPRENEURSHIP CHALLENGES OF TODAY UNDERSTANDING HOW TO ENHANCE REGIONAL COORDINATION

7 Process To obtain regional input and feedback, the Province is proposing a Regional Self-Assessment and process designed to elevate a region s innovation and entrepreneur network and strengthen the ecosystem in which it operates. More specifically, the Regional Self-Assessment and process will be structured as follows: REGIONAL SELF-ASSESSMENT REGIONAL ACTION PLANS Understand the Current Entrepreneurship Ecosystem Understand the Entrepreneurship Challenges of Today Understand How to Enhance Regional Collaboration Conduct Regional SWOT Analysis Assess Regional Alignment with Global Best Practices Identify Current Challenges Facing Your Entrepreneurs Identify Regional Opportunities to Address the challenges Discuss & Align Organizational Mandates Identify New Ways to Work Together Generate New Ideas to Support the Ecosystem Provincial Workshop Translate Ideas into Action Synthesize the Information Develop Regional Action Plans Take Regional Collaboration to the Next Level The Provincial Brainstorming Workshop will provide regions with a peer learning opportunity to reflect on the key findings/challenges in other regions and how other regions are proposing to address these challenges.

8 Steps & Timeline STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 Launch Regional Self-Assessment (Late February) Complete Regional Self-Assessment (March/April) Provincial Brainstorming Workshop (Mid June) Complete Regional Action Plans (July/August) Evolve Entrepreneurship Resources (August/September) MEDTE/MRI launch team to meet with the Regional Planning & Execution Teams (1) across the province. Regional-Self Assessment Guidelines and Template circulated. A roster of facilitators will be available to support regions through the process (2). The Regional Planning & Execution Team will be responsible for engaging partners whose input is critical for a robust regional analysis and to develop/ brainstorm recommendations (e.g. IRAP ITAs, CFDCs, rep. from local angel network, EIRs, Ec. Dev. Offices, BDC, Chamber of Commerce, etc.). Summary of key findings, challenges and opportunities (based on information gathered via the Regional Self- Assessment) will be presented. Peer learning opportunity. Brainstorm. The Execution Team develops Regional Action Plans. Regional Action Plans are submitted to MEDTE/MRI. Feedback is provided on the Regional Action Plans. Business Plans (RICs, SBECs, etc.) are revised to reflect the Regional Action Plans. Program Manuals (e.g. BAP, IACP, etc.) are revised. Where possible, program proposals are developed. (1) This team is comprised of organizations that are accountable for completing the Regional Self-Assessment (e.g. RICs, SBECs, BAS staff, OCE staff, etc.). (2) The use of a facilitator is not required, however, only an individual/organization that will never be involved in the process can be used to facilitate the process.

9 Who s Involved? Entrepreneurs and businesses in Ontario (the clients ). Everything we do must be focused on supporting our clients. Organizations being held accountable for executing and completing the Regional Self-Assessment (e.g. RICs, SBECs, BAS staff, OCE staff, etc.) the Regional Planning & Execution Team. Organizations whose input is critical for a robust regional analysis and to develop/brainstorm recommendations (e.g. IRAP ITAs, CFDCs, rep. from local angel network, EIRs, Ec. Dev. Offices, BDC, Chambers of Commerce, etc.). Those who need to be consulted/informed of the process being undertaken (e.g. municipalities, research institutions, etc.). Examples provided for illustration purposes only. Regions will need to adjust the composition to reflect their regional ecosystem.

10 Best Practices - Scope The Best Practices relate to Innovation, Entrepreneurship and Grow from Within Economic Development Strategies. In Scope: Grow from Within economic development strategy Entrepreneurship across all sectors, sizes and stages of development Entrepreneur education Youth entrepreneurship Talent development, attraction and retention Workforce development (i.e. life-long learning) and regional alignment Risk capital Regional industry-academic collaborations Ecosystem support of university spin-offs Role of anchor firms Export development Business-to-business strategic alliances Customer linkages domestic and global Global ecosystem linkages Networks and organizational linkages Entrepreneur s (firm s) perception of engagement of research institutions Entrepreneur s (firm s) perception of the business climate Out of Scope: Investment attraction Community development (social services, etc.) Technology transfer / Knowledge mobilization Regulations Tax incentives Community infrastructure (i.e. roads, bridges, broadband, etc.) Land use issues Physical infrastructure -- research parks, incubators, accelerators, etc. [Note: activities and services within these types of facilities are considered in scope]

11 Appendices 11

12 Regional Self-Assessment: Key Questions & Outcomes Key Questions Key Outcomes Regional SWOT Analysis Regional Alignment with Global Best Practices Understand & Align Organizational Mandates Identify New Ways to Work Together Understand Current Challenges Facing Entrepreneurs Generate New Ideas to Support the Ecosystem What are the strengths, weaknesses, opportunities and threats with respect to the region s innovation and entrepreneur ecosystem? How does your ecosystem stack up against the identified global best practices? How are the participating non-profit and government organizations currently supporting the ecosystem and the clients it serves? What are the key assets and challenges of the organizations supporting the ecosystem? What mutually beneficial partnerships could be created to better serve clients and address regional/organizational gaps/challenges? What are the current challenges facing entrepreneurs in your region? What is required to better support your ecosystem? To achieve a common understanding of the regional ecosystem. To identify relevant data. To determine how well the regional ecosystem is aligning with global best practices. To establish a common understanding of what each organization does to start the process of identifying areas of potential collaboration. To summarize each organization s assets and challenges. To identify areas of potential overlap based on the programs and services being implemented. (Mandate overlap creates an opportunity to re-allocate resources within the ecosystem.) To identify each organization s assets and gaps/challenges (every organization has gaps; things they do not have or cannot do). To brainstorm what mutually beneficial partnerships can be created (every organization should have at least one new collaboration to pursue). To identify program/service gaps. To identify new ways where additional resources could better support your ecosystem. (This is NOT about additional funding support; it is about doing things differently or re-allocating existing resources.) To identify how these changes could address regional gaps/challenges or catalyze new opportunities.

13 Best Practices To understand the current regional ecosystem, regions will be asked to self-rank how well their regional innovation and entrepreneurship ecosystem aligns to the best practices. 13 1) Put entrepreneurial activity at the top of economic development agendas. The region must have continual activities that engage the entire entrepreneurial pipeline. 2) Build innovation and entrepreneurship ecosystems, not just programs, to help firms start, grow and create new job opportunities and retain existing employment. STRATEGY 3) The region must be inclusive of anyone who wants to participate in it. However, it is important to distinguish among different kinds of entrepreneurs and firms, and target polices and resources accordingly. This ranges from youth to mainstreet businesses and from technology-based start-ups to high growth SMEs, among others. 4) Entrepreneurs must provide leadership, and make a long-term commitment. It is also important to mobilize support from successful business executives, investors and entrepreneurs to support ecosystem clients. 5) Build ecosystems anchored by R&D performing and globally-oriented firms that support other entrepreneurs/firms in the region. 6) Establish global pipelines linked to entrepreneurs, investors, researchers, and firms in strategic markets. 7) Focus on talent attraction, development and retention. TALENT REGIONAL COLLABORATIONS WITH RESEARCH INSTITUTIONS AND ENTREPRENEURIAL SUPPORT ORGANIZATIONS OTHER KEY ACTIVITIES 8) Promote entrepreneurship and its social and economic value. 9) Ensure the education system is teaching entrepreneurship skills at all levels of the educational system, including lifelong learning, and provides the necessary workforce skills science, technology, engineering, mathematics, and sales and marketing to align with the needs of firms in the region. 10) High-impact research that is aligned with the needs of the region s industrial base and is globally connected. 11) Support collaborative ventures between entrepreneurs, firms, research institutions and entrepreneurial support organizations. 12) Help entrepreneurs and firms open doors to new customers -- globally and locally including positioning within regional and global value chains. 13) Create a sophisticated demand for risk capital and debt financing as well as an adequate supply of risk capital and debt financing. 14) Provide a competitive business climate and regulatory environment (perceptions). MONITOR & EVALUATE 15) Monitor and evaluate program outcomes and cost-effectiveness; and promote successes.

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