Entrepreneur Round Tables Key Findings

Transcription

1 Entrepreneur Round Tables Key Findings Growing a business on Prince Edward Island, challenges and solutions Spring 2017 Island Advance Entrepreneur Round Table Report

2 TABLE OF CONTENTS EXECUTIVE SUMMARY 2 INTRODUCTION 5 APPROACH 5 PARTICIPANT PROFILE 7 EXISTING SUPPORTS 10 CHALLENGES AND BARRIERS 12 TOPIC FEEDBACK 20 SUGGESTIONS 22 INTERNATIONAL NEWCOMERS 24 MOVING FORWARD 26 APPENDIX A SESSION PRESENTATION APPENDIX B SAMPLE INVITATION Island Advance Entrepreneur Round Table Report

3 EXECUTIVE SUMMARY Island Advance is a province-wide initiative of the Greater Charlottetown Area Chamber of Commerce designed to spur economic growth in Prince Edward Island through entrepreneurship, access to capital, and business immigrant retention. As part of its Phase 2 mandate, Island Advance committed to soliciting perspectives from entrepreneurs across the province. On behalf of Island Advance, Insight Brand & Marketing Studio conducted five entrepreneur roundtables and two interviews, engaging 49 business owners, in March These consultation activities explored challenges and assistance participants have experienced in growing their businesses; possible solutions to address the challenges; and particular topics of interest previously identified by Island Advance. When considering this report it is important to be mindful that these findings reflect the perceptions of a modest number of business owners in each location, and are specific to the types of businesses that participated. Nevertheless, themes did emerge and at a minimum these bear further examination. Business owners acknowledged the various ways their businesses had been supported through start up and growth. A number of federal and provincial government programs and resources were seen as helpful, with particular emphasis being placed on Skills PEI and its positive approach to assisting entrepreneurs. Industry sector organizations and programs, such as the PEI BioAlliance and PEI Connectors, were noted as important by some participants. Tax incentives as well as training and collaboration were also mentioned. Participants were asked to identify challenges and barriers to business success. The challenge of recruiting and retaining the staff required to run and grow a business (regardless of position type) was the most frequently and consistently noted barrier. Another consistent theme was the level and type of government regulations, legislation, processes and quality of service provided to business owners when trying to navigate these demands. Participants also cited difficulties in raising or accessing funding to expand their businesses. The higher cost of doing 2

4 business on PEI, as compared to the mainland, was also discussed. Entrepreneurs expressed concern about existing decision-making and government culture, which they perceive as reluctant to consider new ways of doing things. Participants shared a variety of mentorship needs and experiences with an overall sense that mentorship can be helpful if provided in the right manner. Business owners expressed an interest in mentorship with peers who share a similar level of experience but are active in a different sector. They also indicated that they see value in programs that offer exposure to mentors who have achieved success operating a business similar to their own. The need for workspaces or incubators was location specific with needs varying by region. In Charlottetown, the main need expressed was around having a good inventory of office space available for lease. In addition to round tables in West Prince, Summerside, Charlottetown and Montague, a round table was held in Charlottetown with staff and clients of the PEI Connectors Program. Delivered through the Greater Charlottetown Area Chamber of Commerce (GCACC), PEI Connectors facilitates connections between immigrant entrepreneurs and the PEI business community. Participants were positive about the supports they receive from existing programs and the learning opportunities offered. Challenges expressed by immigrant entrepreneurs included stringent Provincial Nominee Program (PNP) requirements, including the short timeline to produce a business plan and requirements for spending on the business, as well as perceived or real non-acceptance into the community and its business sector. Participants made a number of suggestions for improvement, including PNP adjustments and professional assistance with certain aspects of business start-up. Ultimately, while there are supports in place, there is room for improvement when it comes to removing barriers to entrepreneurship and helping immigrant business owners understand and gain access to the local market. 3

5 The information in this report has the potential to influence action by all groups involved in developing an entrepreneurial culture in Prince Edward Island: business owners; provincial, federal and municipal governments; Chambers of Commerce, industry associations; and educational institutions. Potential areas for action are identified with regard to creating a more positive business culture, creating the conditions for growth, and building on success. Through continued collaboration, open discussions and proactive steps, the Island business community can continue to grow, expand and create prosperity. 4

6 INTRODUCTION Island Advance acts as a catalyst for entrepreneurship across the province. As part of its Phase 2 mandate to engage stakeholders, Island Advance recognized that it is important to continue to hear from Island entrepreneurs; that is, the people working to build and grow their businesses every day. Therefore, Island Advance committed to consulting with entrepreneurs from across the province to gather their perspectives. Island Advance commissioned Insight Brand & Marketing Studio to conduct a series of facilitated discussions or round tables. While there has been research and initiatives focused on start- up businesses, discussion and a review of current activity revealed that there has been less focus on more established businesses. Therefore, the target audience for the round tables was identified as business owners currently operating in Prince Edward Island, typically with 2-5 years in business and/or looking to grow and expand. When considering this report it is important to be mindful that these findings reflect the perceptions of a modest number of business owners in each location, and are specific to the types of businesses that participated. APPROACH Four round tables for business owners were held across the Island between February 28 and March 30, 2017: Summerside, Charlottetown, Montague and West Prince. A fifth round table was held in Charlottetown with the staff and three clients of the PEI Connectors program. Direct interviews were conducted with two sector-specific business owners. 5

7 RECRUITMENT Multiple recruitment methods were used for the business-owner round tables: direct invitations and phone calls, social media promotions, and notices shared with partner organizations for distribution to their memberships. See a sample invitation at Appendix A. While the target audience was clearly identified, participants were not screened or refused participation based on any set criteria. FACILITATION Each round table was a facilitated discussion, designed to encourage participants to first identify challenges and supports, and then explore specific topics identified by Island Advance. A copy of the session presentation package can be found in Appendix B. The following agenda guided each session. I. Welcome: Patti Devine, Island Advance Project Director, welcomed all participants and spoke about the organization and its mandate. If an Advisory Board member was present, he or she was invited to address the group. II. III. IV. Agenda and Introduction: Dawn Binns, Insight Brand and Marketing Studio, introduced the session, including the purpose and what would be covered. Participants were asked to introduce themselves and provide the name of their business and its key product or service, length of time in business, whether the focus is local or export sales, and any growth plans. This information informed the participant profile found in this report. Barriers and Challenges: Participants were asked to individually write down the barriers and challenges experienced in growing their businesses. These items were shared with the group and discussed collectively to gain further insight and understanding. Supports: Participants were asked to share supports that were helpful to them in growing their businesses. 6

8 V. Solutions and Suggestions: Participants were asked to share suggestions or solutions; quite often, this discussion naturally happened within the barriers and challenges segment. VI. Topic-Specific Discussion: The following topics, as provided by Island Advance, were raised with participants: access to capital, mentorship, finding talent/human resources, professional development/training, and working space/incubators. These topics were not revisited if they were discussed earlier in the session. VII. Closing: Participants were asked if there was anything else they wished to share and were thanked for their participation. PARTICIPANT PROFILE The following is an overview of the participants in the focus groups and interviews, followed by details of the specific consultations. Participant Summary Number of participants: 49 business owners Years in business: 1-2: : : 4 10+: 17 Sectors represented: Retail/Hospitality 11 Marketing and Creative 6 Professional Services 5 Construction 4 Tourism/Event 4 Food Production 4 Information Technology 4 Health/Fitness 3 BioScience 2 Export sales: 20/49 Growth: All business owners expressed interest in continuing to grow their business, including on- and off-island expansion and diversification into complementary services or products. 7

9 Charlottetown Round Table Number of attendees: 15 Years in business: 1-2 (7), 3-5 (6), 6-8 (1) and 10+ (1) Sectors represented: Professional services/training (3), marketing and social media (3), retail (2), tourism, food sales, information technology (IT), event management, brewery, print production, and private education. Export sales: 7/15 Growth plans: 15/15 Summerside Round Table Number of attendees: 9 Years in business: 1-2 (2), 3-5 (2), and 10+ (5) Sectors represented: Retail (3), marketing and creative services (2), fitness, bioscience, food production, and restaurant. Export sales: 3/9 Growth plans: 8/9 Montague Round Table Number of attendees: 8 Years in business: 1-2 (1), 6-8 (3), and 10+ (4) Sectors represented: IT/Consulting (2), construction (2), retail, online retail, waste management, and travel tourism. Export sales: 3/8 Growth plans: 8/8 8

10 West Prince Round Table Number of attendees: 12 Years in business: 1-2 (3), 3-5 (2), and 10+ (7) Sectors represented: Retail/hospitality (4), construction (3), food (2), professional services (2), manufacturing, farm equipment sales, and health services. Export sales: 5/12 Growth plans: 10/12 PEI Connectors Round Table - Charlottetown Number of attendees: 8 (3 business owners and 5 PEI Connectors staff) Years in business: 1-2 years Sectors represented: Magazine/news, photography and business consulting Note: This session was different in composition in order to use PEI Connectors staff as a resource for understanding the challenges faced by their clients. Supplementary Interviews The research methodology called for additional interviews to ensure various sectors and/or geographical locations were represented in the final report themes. Number of interviews: 2 Sectors represented: IT and BioScience Export: Yes Growth: Yes 9

11 ROUND TABLE FINDINGS EXISTING SUPPORTS & SOLUTIONS Prince Edward Island has a strong business and entrepreneurial community; this community as well as existing programs and initiatives have supported business growth. Participants were asked to share specific ways in which Island businesses have been supported. SKILLS PEI In every session, Skills PEI was cited as a support that has helped business owners grow and build their businesses. Specifically, participants mentioned the Graduate Mentorship Program, training and supports, and assistance with finding students and employees. Participants lauded the staff and how they work with business owners, look to support businesses and proactively find ways to help. Skills PEI staff were described as how government programs should be. They are like what government should be. Roundtable participant FUNDING AGENCIES Access to funding was noted in all sessions as vital to business growth. Funding agencies and groups such as the Atlantic Canada Opportunities Agency, Community Business Development Corporations (CBDC), Innovation PEI, Rural Action Centres and the National Research Council were described as important supports. One participant mentioned the Provincial Nominee Program (PNP) as a key funding opportunity for his business. 10

12 INDUSTRY ASSOCIATIONS AND PROGRAMS Where relevant, industry organizations or specific programs were described as important to the business owner s ability to learn, connect with others and grow their business. The PEI BioAlliance, with its mentorship program, was described as an important resource for learning and strategic business growth. For international newcomers, the PEI Connectors program was unanimously described as important to business success. Networking, guidance in navigating the system and training were all considered necessary. TAX BREAKS AND INCENTIVES Two business owners cited specific tax breaks and incentives as helpful. One mentioned the Specialized Labour Tax Credit which provides an incentive for workers with specialized skills or expertise not yet available in the province. Another participant noted the investment tax credit as important for their business growth. LEARNING AND ONLINE COLLABORATION Training and informal collaboration with other business owners was acknowledged by a number of business owners as important to their own growth and the growth of their businesses. This learning was accessed in physical locations, such as the Rural Action Centres, as well as informally through social media. One business owner described an Island Facebook group being used by entrepreneurs to share, ask questions and support each other as an important resource. 11

13 PERFORMANCE-BASED INCENTIVE PROGRAMS In relation to retaining employees one business owner discussed how his company created an internal compensation framework to encourage retention, which has helped with recruitment as well. The program awards bonuses for staff at quarterly periods based on four core measures that staff can work towards. The bonuses are awarded only if the employee is still working for the company at the end of the quarter. The result is employees seem to be less likely to leave on a whim because they have an incentive to stay with the company to collect their bonus. CHALLENGES AND BARRIERS The following is a thematic analysis of challenges largely shared by all participants, with specific or unique regional interests noted. Examples are cited to illustrate points, not necessarily to identify a specific area for action. HUMAN RESOURCES: RECRUITING AND RETAINING STAFF The challenge of recruiting and retaining the staff required to run and grow a business was the most frequently and consistently noted barrier in all sessions. The nature of the challenges varied by sector and region, but regardless of position type (low- or high-skilled), business owners expressed this difficulty. Recruitment for highly skilled positions was noted as a specific challenge with difficulty in finding the right skills or expertise. This challenge was referenced particularly by IT or science companies that require a specific skill set to do the work. Most often, it was noted, individuals with these skills must be recruited from off-island, yet such recruitment can be difficult. Enticing skilled professionals to move to PEI was considered a challenge, with wages, city size, lack of knowledge about the Island and perceived deficits in the education system all mentioned as barriers. Retention was also noted as difficult. 12

14 Recruitment and retention for entry, lower skilled positions were also cited as challenges. The Employment Insurance (EI) system was seen as a barrier as it is often financially better for individuals to remain on EI than to take an entry position. Two business owners noted that some employees will only work for cash, making it difficult to hire, particularly when other employers will pay in that manner. EI is a major hurdle. I have full-time work for people but they want to be laid off and decline full-time work. Round table participant Rural recruitment was a concern expressed in the three non-charlottetown sessions. Business owners outside the capital area find it hard to recruit the staff they need since they are typically only able to draw from the smaller, rural population. They have found that those living in Charlottetown do not want to travel to rural areas. Employers described situations in which they hire staff who only stay until they can get a position in town. One participant has found it so difficult fill entry positions in the rural area, she has considered moving her business to Charlottetown. Work ethic and time to train was another common theme. Some participants expressed a feeling that many employees, particularly those being hired today, do not have a strong work ethic. Business owners are seeing turnover and employees are not concerned about keeping their job or progressing. In addition, the time required to train new employees, only to have them leave, creates a financial cost to the employer. It is a challenge. We re often making do with a substandard work ethic just to fill positions. Round table participant Other comments: Child care access in rural areas can be a barrier to work. Language skills of new immigrants make hiring and training difficult. Young adults do not appear to be interested in learning the trades. Some trades programs are not offered on PEI (e.g., Red Seal mechanic program). 13

15 GOVERNMENT REGULATIONS, PROCESSES AND LEVEL OF SERVICE Another consistent theme was the level and type of government regulations, legislation, and processes, as well as the perceived lack of service provided to business owners trying to navigate these demands. System confusion and inconsistency were noted as challenges, especially when a rule or regulation is hard to find, or unclear and inconsistently applied. In one example, a business owner looking to develop new land had completed all requirements as outlined in the regulations and followed the advice of the government staff, yet was told what he had done was not enough and more requirements not written in regulation were added. In another example, a business owner has observed that standards and review of private construction projects are vastly more extensive than those of public projects thus creating a perceived unfair playing field for private developers. Another business owner said that while a particular environmental test is required for his product to be used in PEI waters and streams, he could not find anyone on PEI to do this testing. Timelines for approval were seen as a barrier slowing down project progress. A number of participants described spending years getting funding approvals, sometimes even abandoning opportunities because funding could not be put in place in a timely fashion. Looking for federal funding is frustrating, it is very slow and there are no apologies for it. Round table participant Level of customer service from government staff was noted as challenging. Although not always the case, some business owners reported that it has been their experience that when their business doesn t qualify for a particular funding program, government has not looked for other ways to make the funding program work. We know they can t always say yes, but we need an approach of let s see, how we can help or make it work? Round table participant 14

16 Out-of-date rules, regulations and legislation were noted as major challenges in particular industries at both the municipal and provincial levels. Specific examples related to where cider brewing could take place, and road closure and event regulations. Participants were of the view that rules that may have made sense in the past have not been updated to support new business ideas or match other cities and provinces. ACCESS TO CAPITAL AND GOVERNMENT FUNDING Participants in all sessions raised the challenge of raising or accessing money to grow and expand a business; such challenges were found in all sectors and regions with some unique challenges in each. Overall, there was a consensus that accessing sufficient financing to grow a business was difficult, with the following examples and situations noted: Food service companies struggle to access private or government funding, as this industry is not designated as a high priority area. The current lending structure is not adequately adapted to or beneficial for the IT sector; it is difficult to bootstrap or self-fund where there is upfront investment and labour costs. There is limited access to funding for businesses outside the provincial government s priority sectors. While funding is sometimes insufficient, expectations remain high; businesses or ventures are expected to achieve growth plans with fewer resources. Ultimately, business owners are looking to finance good opportunities and effective growth plans regardless of the sector. 15

17 COST OF DOING BUSINESS The cost of doing business on Prince Edward Island both general costs and some specific to being on the Island or being outside of Charlottetown was noted as a challenge in all but one session. Specifically, participants described the following: Insurance, particularly for United States sales, is a challenge. Communication and transportation costs are higher on the Island, therefore making it hard to compete with mainland locations. Taxation is higher on the Island, reducing the competitiveness of local businesses and the ability of owners to invest in their businesses. Island utility rates and property taxes impact competitiveness. Shipping costs to and from the Island are higher than those on the mainland and higher still for businesses outside of Charlottetown. In one example, a business owner noted an extra $30 charge to get items arriving from off-island through Charlottetown and then to Summerside. Overall, participants felt that while there is an accepted cost to doing business, there are situations in which having an Island-based business is more expensive, impacting competitiveness, especially in areas outside Charlottetown. LACK OF BUSINESS-FRIENDLY ENVIRONMENT In three sessions, participants expressed concern over the culture of decision making within governments in relation to supporting and encouraging change and innovation. One participant mentioned that when innovative and different approaches are presented to funders and established business owners (i.e., events or online concepts), there is often a lack of understanding and support. Another participant cited public and stakeholder opposition to attempts to expand and grow his business. In these cases, it is the business owner s view that 16

18 no one is speaking out in support of business growth and the positive effects for the community and economy. In two sessions, discussion centered on municipal government policies. Many procedures, regulations and decision-making approaches were described as not focusing on business growth, making such growth more difficult. Without growth businesses can t compete. Who can speak for businesses? Someone needs to be speaking up and connecting the importance of business growth in keeping our communities growing. Round table participant REGION-SPECIFIC CHALLENGES The following challenges, while expressed by multiple participants, were not necessarily heard in every session. Networking and making connections. As noted in both Charlottetown sessions, this challenge presents a barrier for both international newcomers to the Island as well as for others who moved to the Island from the US or other parts of Canada. In general, it was noted that the Island community, while welcoming, can be hard to break into, garner trust and make meaningful business connections. Supporting and acknowledging local excellence. Gaining support for local business was noted as a challenge in two sessions. While the concept of buy local has been promoted, it has still not been adopted across the board by other businesses or the provincial government. Participants described a continued feeling that services from away, particularly professional or creative services, were deemed better than those provided locally. Business owners cited examples of government and business contracts that could be fulfilled locally going to off-island firms. It was noted that some Island firms are hired and supported by off-island governments and businesses yet still not recognized locally. Willingness to pay for professional and quality services. Participants in two sessions described the challenge of other businesses and governments being unwilling to pay for or fund 17

19 professional services to the level required. For example, funding programs to assist businesses in building websites provide far less than the current market value (i.e., $500). Professional service firms are being asked to reduce pricing to fit these funding programs, which hurts their businesses and the overall market. Participants expressed a frustration with a culture of good enough for low dollars rather than excellence or top quality for appropriate dollars. Rural vs. urban investments. In both the Summerside and West Prince sessions, the topic of rural versus urban investments in business was noted as a challenge. There was a feeling that the level of financial support and investments made within Charlottetown were disproportionately higher compared to other parts of the province. It was suggested that disbursement decisions might change if more of them were made within local communities, similar to the CBDC models. Population and rural planning. In the Kings County and West Prince sessions, participants expressed concern about the lack of planning for population growth in general and particularly in rural areas. Specifically, the removal of services such as schools and other government supports from communities is seen to be making the situation worse, not better. Additionally, participants expressed interest in having more newcomers settle in rural areas but stressed the need for supports to make that happen. Cross-provincial trade barriers. In the Charlottetown and West Prince sessions, the challenge of working across provinces was noted; for example, liquor laws make export and import of products challenging. Specific Challenges. Other challenges raised by individual participants were: Lack of time to work on the business rather than just in the business. Lack of real export strategies among businesses going on export missions. In the construction industry, it can take a long time for funding announced by federal or provincial governments to get to the business owner level for projects. 18

20 Within construction, private projects with environmental standards are highly scrutinized and slowed down, yet public projects run by government staff are often not. SPECIFIC TOPIC FEEDBACK Island Advance was interested in entrepreneurs views about some specific topics that did not always emerge organically as part of the round table discussion about challenges and solutions. Following is the feedback on mentorship and work spaces. MENTORSHIP There were varying responses and experiences relating to mentorship. A few participants noted they find it worthwhile to pay for mentorship while another did not find this investment useful. Those with positive mentorship and learning groups experiences found them most helpful when they were within their own industry or business, but not necessarily local; i.e., they liked connecting with others across the country, enabling them to learn from others slightly ahead of them in growth. In some instances, mentorship was not seen as helpful as it creates a whiplash effect with many perspectives and suggestions being provided but without clear direction. Another business owner commented that the mentorship program she participated in where she as matched with a mentor did not meet her needs because it was too rigid. The greatest preference was for mentorship programs that allow for naturally developed connections and access to high level expertise from people who have launched and grown a business, but are still engaged, and therefore relevant to the business and today s environment. The Wallace McCain Institute in New Brunswick was noted as a highly effective peer mentorship program for higher growth and established businesses. In fact, business owners are currently going off Island to participate in this program, but would prefer to have this kind of support and expertise available locally. 19

21 WORKSPACES Input on this topic varied, depending on location. The Summerside group noted there are very few places to work and set up offices, particularly ones with private meeting rooms. Participants expressed a need for an online inventory of Charlottetown office spaces available. It was shared that Downtown Charlottetown Inc. currently has an inventory for the downtown core. The Kings County group referenced the St. Peter s School business space as quite helpful for that area, and also mentioned the shared space in Montague. West Prince participants stressed a bigger challenge finding any buildings or places to set up a business; very few exist. SUGGESTIONS FROM BUSINESS OWNERS When asked for suggestions relating to challenges raised during the session, first and foremost, participants said they would like to see some of the barriers removed (e.g., taxes, legislation, regulations, funding models). The following additional suggestions were made on how to help Island businesses prime for growth. Make rural areas more appealing to newcomers and immigrants, possibly with language training assistance. Implement rideshare or transportation programs to the rural areas to assist with staff recruitment and retention. Improve collaboration and consultation with businesses when planning trade missions. Business organizations such as Chambers of Commerce or Island Advance should speak out in support of growth and its economic benefit, providing another perspective to changes, not just that of residents who may be in opposition. 20

22 Industry should collaborate on messaging and what it needs from government, making changes more likely and easier to adopt. Assistance with finding and navigating resources and supports is needed so businesses owners can find what they need (even things they do not know exist). Develop a marketing campaign to make Islanders more aware about newcomer businesses and to break down some barriers to supporting them. Help with making connections for all newcomers; i.e., anyone from away, not just immigrants. Provide opportunities to hear peer-to-peer stories, so they can learn from each other and leverage experiences. Produce profiles in local newspapers of area business owners ( a day in the life of ) to humanize them and help build support for business growth. Review current provincial funding models to ensure one area is not getting a disproportionate amount of the funding and supports. Consider establishing a formula for disbursements to regions. Provide more education about the provincial nominee program (PNP) to help Island business owners understand how investments from this program can support their business growth. INTERNATIONAL NEWCOMERS UNIQUE CHALLENGES An individual session was held with the staff of the PEI Connectors Program and three international newcomer business owners who have used the program. This session leveraged input from PEI Connectors staff as a resource for understanding the challenges faced by their clients. Where there were consistencies, the results of this session were integrated into the 21

23 previously mentioned challenges. However, there were a few areas of discussion specific to this audience, as highlighted below. For reference, challenges raised in this session which were similar to those noted in other sessions include: Human resources recruitment and retention Networking and finding the right connections in the business community Understanding of rules, regulations and government processes and where to turn for this information PROVINCIAL NOMINEE PROGRAM REQUIREMENTS The dominant challenge faced by international newcomers, as related in this session, is fulfilling the rigid requirements of the Provincial Nominee Program. Newcomers provided two specific examples. The first was in relation to requirements to develop a business plan and approach within a short timeframe when the individual is not familiar with the local market. As a result, newcomers are unable to adequately research, understand and create a successful business plan, leading to businesses that are not necessarily appropriate for the local market and therefore unsuccessful in the longer term. Further, newcomers are often setting up businesses in areas outside their expertise, again making success difficult and unlikely. The second example related to the spending parameters and requirements. Existing expectations are not necessarily the right spending approaches for a successful business. In particular, the one size fits all approach to these requirements makes a significant difference, again creating an environment where businesses are not set up for success. We are required to spend too much money per year. This one size fits all approach doesn t work and spending isn t strategic. Roundtable Participant ACCEPTANCE INTO THE COMMUNITY 22

24 Echoing discussion in the previous Charlottetown session, participants indicated that while Islanders are friendly they may not be fully ready to embrace and support businesses set up and run by international newcomers. Participants said finding connections into the Island business community can be difficult and it often takes longer for newcomers to gain the trust of Islanders. It was also noted that when an international newcomer purchases an existing Island business the perception of that business, now that it is under new ownership, changes and sometimes customers leave without giving it a chance. Are they ready for us? Locals don t necessarily know how immigrants benefit the community and other businesses. Round table Participant SUPPORTS AND SUGGESTIONS Participants indicated they received supports from the following: PEI Connectors and the Greater Charlottetown Area Chamber of Commerce PEI Association of Newcomers to Canada Workshops and seminars to assist with education and information They also provided the following suggestions of how things can change to potentially improve the circumstances and success of immigrant-owned businesses. Provide professional valuations of businesses for sale to ensure they are not being sold over market price and newcomers are protected. Promote and educate Islanders on the economic impact of the businesses including the business-to-business impacts and economic growth. Make adjustments to PNP to support the costs associated with researching and developing the required business plan. Create an inventory of research in relation to what the Island market needs, useful to match newcomer interests and skills with the existing needs. 23

25 Adjust funding so projects could potentially be grouped, thereby pooling resources for larger businesses and projects. Create a business designer/connector role to assist newcomers with developing a business concept that will be viable in the Island market. 24

26 OPPORTUNITIES FOR ACTION The purpose of the entrepreneur round tables was to identify challenges facing entrepreneurs who are looking to expand their business and most importantly to identify potential actions that can help address the challenges. Without assigning responsibility for implementation, following is a list of actions, grouped within three areas, that could help address some of the challenges articulated by business owners across the province. 1. CREATING A MORE POSITIVE BUSINESS CULTURE Promote business growth as a vital part of growing the Island economy and in particular rural communities. Speak out about the positives of business expansion and its impact on our communities and province. Share business owner stories with the public to create more support when growth and change is put forward. Focus on the employees and the difference the business makes to the local economy. Also focus specifically on international newcomers to create an emotional connection with the owners, and break down barriers with Islanders. Business owners work together to create consensus regarding changes needed in specific industries, communities or at particular levels of government. Creating one voice will assist elected officials with creating policy change. Review the cost of doing business on the Island and identify opportunities to reduce this burden and make Island businesses more competitive (e.g., taxes, utility rates, communication and transportation costs). Promote rural areas to newcomers and immigrants, and make them more appealing through transportation programs and language training assistance. Implement rideshare or transportation programs to the rural areas to assist with staff recruitment and retention. 25

27 Develop a marketing campaign focused on newcomer businesses to increase awareness among Islanders and break down some barriers to supporting them. 2. CREATING THE CONDITIONS FOR GROWTH Build a culture of customer service and proactive support among agencies and government departments responsible for implementing business rules, regulations and programs. Review provincial laws and regulations with business owners to ensure they are business friendly and unnecessary barriers do not exist. Review municipal bylaws and regulations with business owners to ensure they are business friendly and unintended barriers do not exist. Enhance navigation for businesses in finding and accessing programs, navigating regulatory and other government systems. Review current funding models to ensure both regional and sector equity. Include newcomer business owner feedback in any modifications to the Provincial Nominee Program requirements. Create an inventory of research in relation to what the Island market needs so as to match newcomer business interests and skills within existing needs 3. BUILDING ON SUCCESS PROGRAMS & SOLUTIONS THAT WORK Maintain and potentially expand programs that are working, such as Rural Action Centres, NRC-IRAP, Skills PEI, PEI Connectors, PEI BioAlliance, CBDCs Create growth-specific training and mentorship groups that take into account the recommendations by business owners and models noted within this report. 26

28 CONCLUSION The perceptions and views represented in this report are important messages for all stakeholders involved in developing an entrepreneurial culture in Prince Edward Island: business owners; provincial, federal and municipal governments; chambers of commerce, industry associations, business support organizations, and educational institutions. Although the 49 business owners consulted at these round tables represent a modest number per location, and their views are specific to the types of businesses they operate, themes did emerge and bear further examination. These suggestions and findings can help inform the programming of business support organizations, industry associations, governments, and educational institutions. Through continued collaboration, open discussions and proactive steps, the Island business community can continue to grow, expand and create prosperity. MOVING FORWARD REPORT DISTRIBUTION Island Advance will provide a copy of the findings to: All session and interview participants All Chambers of Commerce on PEI Island municipalities - staff and elected officials Members of the Legislative Assembly Members of Parliament Government funding and support agencies federal and provincial Industry associations/alliances Other partner organizations and groups 27

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