4 YORK REGION SMALL BUSINESS ENTERPRISE CENTRE 2004 ANNUAL REPORT AND 2005 WORK PROGRAM

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1 4 YORK REGION SMALL BUSINESS ENTERPRISE CENTRE 2004 ANNUAL REPORT AND 2005 WORK PROGRAM The Planning and Economic Development Committee recommends the adoption of the recommendations contained in the following report, January 31, 2005, from the Commissioner of Planning and Development Services: 1. RECOMMENDATIONS It is recommended that: 1. This report be received for information. 2. Staff be authorized to submit a new business plan and proposal to the Ministry of Economic Development and Trade for funding assistance to continue the operation of the York Region Small Business Enterprise Centre. 2. PURPOSE The purpose of this report is to provide an update to Regional Council on the activities of the Small Business Enterprise Centre for 2004, and to present the Centre s Work Program for BACKGROUND In January 2004, staff was authorized by Regional Council to submit a business plan and proposal to the Ministry of Economic Development and Trade for funding assistance to continue the operation of the York Region Small Business Enterprise Centre (YRSBEC) in Newmarket. Funding approval was subsequently received in April The YRSBEC provides assistance in the creation and development of new and early growth stage businesses. The Centre in Newmarket complements the other Small Business Enterprise Centres in Markham, Richmond Hill and Vaughan to serve entrepreneurs and small business in the northern parts of the Region. 4. ANALYSIS AND OPTIONS 4.1 York Region Small Business Enterprise Centre The YRSBEC was established in June 2003 at the Regional Administrative Centre. Currently, the Enterprise Centre is located on the fourth floor within the Planning and Development Services Department. Ongoing discussions are being held with Property

2 Services in an attempt to increase the visibility of the Centre and to make the services more accessible to small businesses within the Region. James Nicholson was retained in June 2003 as the Small Business Consultant to manage the Enterprise Centre on a daily basis. The Centre s target clientele includes new entrepreneurs and small businesses. Services to potential entrepreneurs include guidance on new business registration, business plan preparation, market planning, and financing options. The Consultant also offers advice to existing companies on strategic planning, market penetration, expansion planning, and human resource issues. Part of the Centre s mandate is to facilitate training and education, and seminars and workshops are offered on a regular basis. Other outreach activities include making presentations, organizing small business events, and securing partnerships and sponsorships. The Consultant is also responsible for the delivery of Provincial programs for businesses and youth and the daily management of the Centre. 4.2 Activities for 2004 The following are some of the activities undertaken in 2004, compared to earlier forecast targets: Activities Actual Original Forecast Targets General Enquiries 3,677 2,800 Consultations Seminars Bridges to Business 1 1 Summer Company 15 applications, 4 approvals - Outreach The large number of enquiries is indicative of the entrepreneurial spirit in the Region. The time and effort devoted to Summer Company has directly impacted the number of outreach activities undertaken in Achievements While it is difficult to track the number of new businesses start-ups and expansions, the following are just a few of the successes achieved during the year as a result of intervention by the Small Business Consultant: Establishment of a new Chiropractic practice. Opening of two ethnic restaurants and an ethnic food store. Establishment of an Accounting Office and two graphic artists in the Region. Launch of businesses by Humans Resource Consultants, trainers and personal coaches. Expansion of a marketing firm and a catering company. Opening of a number of daycare operations. Establishment of two importing firms.

3 4.2.2 Seminars A total of 12 seminars were held during the year, attracting about 360 participants: Fraud & Scams Introduction to Quickbooks (2 sessions) Basic Accounting Marketing Webmarketing Networking Overview of Business Accounting Introduction to Summer Company Summer Company Reporting Systems Running a Small Business Training Accounting for Small Business Summer Company The Summer Company program is one of the youth initiatives launched by the Ministry of Economic Development and Trade, and delivered at the community level through the Small Business Enterprise Centres across Ontario. The program provides hand-on business training and mentoring to help enterprising young people start up and run their own summer business. The students receive up to $1,500 in the beginning of the program to help with business start-up costs, and another sum of $1,500 is awarded in September upon the successful completion of their Summer Company business. In addition, they receive a minimum of 12 hours of business training, and an opportunity to meet regularly with local business mentoring groups for support and advice on the operation of their summer business. This was the first year that Summer Company was offered by the YRSBC, and the response was overwhelming. A total of`15 students submitted their applications and the following four projects were selected to participate in the program: A Property Maintenance project in the Town of Georgina. A Kid s Camp initiative in the Town of East Gwillimbury. A Landscaping business in the Town of Newmarket. An E-commerce project in the Township of King. In 2004, the Summer Company program was offered in partnership with the Richmond Hill Small Business Enterprise Centre to provide training and support for the participants Business Plan Challenge The Secondary School Business Plan competition was launched by the Ministry of Economic Development and Trade in 2002 to celebrate the creativity and entrepreneurial spirit of Ontario s high school students. Under the program, students from across the province submit business plans and compete with their fellow high school students for cash awards.

4 In 2004, YRSBEC partnered with the City of Barrie in the Business Plan Challenge, and a student from Sutton District High School was selected as one of the Local Challenge finalists Bridges to Better Business Event A Bridges to Better Business event was held during Small Business Month in October at the Holland Landing Community Centre in East Gwillimbury. The business conference included presentations by business leaders, breakout sessions, keynote address by a motivational speaker, and a networking event. About 80 participants attended the event and the feedback was very positive. Bridges to Better Business was co-sponsored by the Ministry of Economic Development and Trade, South Lake Community Development Futures Corporation, and the Region Community Participation and Partnerships One of the focuses of the YRSBEC during the year was community partnerships and the development of relationships within the business community and relevant business organizations. In addition to the local municipalities, the Small Business Consultant also maintained regular contacts with local business and community organizations such as Chamber of Commerce and Boards of Trade, Business Resource Centres, professional service representatives, local training and adjustment boards, economic development agencies, and educational institutions, and community groups. As part of the Centre s community outreach, the Small Business Consultant also participated in presentations and speaking engagements, trade shows and trade fairs, as well as seminars and workshops organized by partner organizations. These networking activities have resulted in possible exposure to over 900 participants Sponsorships In 2004, the YRSBEC was successful in securing sponsorships and grants totalling $27,500 from RBC Royal Bank, South Lake Community Futures Development Corporation, the Canada Ontario Business Service Centre, and the Ministry of Economic Development and Trade. The sponsorship funding has helped to offset some of the costs associated with program activities. 4.3 Work Program for Funding Agreement with Province of Ontario The current funding agreement with the Province will expire on March 31, It is recommended that staff submit a Business Plan and proposal to the Ministry of Economic Development and Trade for continued financial support associated with the operation of the Small Business Enterprise Centre Partnership In order to increase efficiency and effectiveness, the YRSBEC is proposing to enter into a partnership with the Richmond Hill Small Business Enterprise Centre and the Vaughan Business Enterprise Centre for the purpose of securing sponsorships for joint events. In

5 addition, the YRSBEC will continue to work with the Advisory Committee and the Chambers of Commerce/Boards of Trade to pursue additional partnership and sponsorship opportunities Business Plan Challenge The 2005 Business Plan Challenge will be the first joint event between the Richmond Hill, Vaughan and York Region Small Business Enterprise Centres. Over 30,000 students from about 35 schools in eight of the nine municipalities (Markham has decided to organize its own Business Plan Challenge in 2005) will be eligible to participate in this competition. The winners will receive up to $5,000 in cash awards. The deadline for submissions is June 1, Promotion for the Business Plan Challenge has already commenced, and invitations have been extended to the schools to participate in this exciting venture. Winners will be announced in September, Summer Company The YRSBEC is planning to offer the Summer Company program in partnership with the Richmond Hill Small Business Enterprise Centre again for the second year. It is anticipated that the response will be as overwhelming as last year, with submissions coming from the 17 schools in the six northern municipalities, as well as from local college and university students. Several members of the Advisory Committee will be involved as mentors for the participants Seminars/Workshops and Special Events The following seminars are being planned for 2005 as part of the Small Business Seminar Series to be offered by the YRSBEC: Sales Skills E-commerce Accounting Starting a Small Business Marketing and Advertising In 2005, the Enterprise Centre is also proposing to introduce a series of fee-based Small Business training sessions for established businesses. The sessions offered by the other Small Business Enterprise Centres across the province have been well attended by small businesses that are looking to upgrade their skills and increase their profitability. Other special events proposed for 2005 will include a Bridges to Better Business event as part of the Small Business Month celebration in October, and an Aboriginal Trade Show to be organized in partnership with the Chippewas of Georgina Island First Nation in the summer. The Enterprise Centre will also be involved as a sponsor in the Enterprising Women s Conference organized by the Women s Centre of York Region in March Service Targets for 2005 Based on past experience and the work program for 2005, the following are the proposed service targets for 2005:

6 General Enquiries: 3,800 Consultations: 260 Seminars/Workshops: 12 Outreach: 80 Special Events: Bridges to Better Business, Summer Company and Business Plan Challenge It is proposed that a system be developed as a follow-up to client visits to track new business growth and expansions. 4.4 Relationship to Vision 2026 Facilitating entrepreneurship the growth of small business in the Region will support the Vibrant Economy Goal of Vision FINANCIAL IMPLICATIONS The Region s share of the operating cost for the Small Business Enterprise Centre has been included in the proposed Economic Development Budget for The total net cost to the Region is estimated at $3,250. Funding from the Ministry of Economic Development and Trade is anticipated at $50,000, subject to approval of the 2005/2006 Business Plan. The total amount includes the matching funding of $5,000 for cash sponsorships received by the YRSBEC. In addition, the Region also receive funding support from the Ministry for initiatives and events such as Bridges to Better Business, Summer Company, and Business Plan Challenge. The Small Business Consultant will continue to work with the Advisory Committee to secure additional sponsorships. 6. LOCAL MUNICIPAL IMPACT The York Region Small Business Enterprise Centre serves the six northern municipalities of the Region and as such complements the services of Enterprise Centres in the Towns of Markham and Richmond Hill and the City of Vaughan. It is currently partnering with the Richmond Hill Small Business Enterprise Centre to launch the Summer Company program. In addition, the YRSBEC is also proposing to enter into a joint venture with the Richmond Hill and Vaughan Enterprise Centres for the purpose of securing sponsorships for joint events. It is anticipated that these partnership opportunities will result in increasing the effectiveness of services being offered to small businesses within the Region.

7 7. CONCLUSION It has been demonstrated that the York Region Small Business Enterprise Centre is an important resource to encourage new small business growth as well as provide support to existing small businesses, particularly in the northern part of the Region. The establishment of the Enterprise Centre has been made possible with funding support from the Government of Ontario. It is recommended that a business plan and proposal be submitted to the Ministry of Economic Development and Trade for continued financial assistance. The Senior Management Group has reviewed this report.

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