HomeMy WebLinkAboutDSD-19-137 - WRSBC - Three-year Funding AgreementREPORT TO: Finance and Corporate ServicesCommittee
DATE OF MEETING:June 10, 2019
SUBMITTED BY: Chris Farrell, Manager, Small Business Centre 519 741 2200 ext 7294
PREPARED BY: Chris Farrell, Manager, Small Business Centre 519 741 2200 ext 7294
WARD (S) INVOLVED:All
DATE OF REPORT:May 17, 2019
REPORT NO.: DSD-19-137
SUBJECT: Three-year funding agreement with the Province of Ontarioand City of
Kitchener for the Waterloo Region Small Business Centre
___________________________________________________________________________
RECOMMENDATION:
That the Mayor and Clerk be authorized to sign a three-year funding agreement with the Province
of Ontario for the Small Business Centre to deliver the core business information services,
Summer Companyand starter company programs. Said agreement to be to the satisfaction of
the City Solicitor.
That the General Manager, Development Services be authorized to execute on behalf of the City
of Kitchener any amendments to the three-year funding agreement provided such amendments
are to the satisfaction of the City Solicitor.
That the Manager, Waterloo Region Small Business Centre, and the Executive Director, Economic
Development, be delegated authority to execute recipient grant agreements to the satisfaction of
the City Solicitor for the Starter Company Plus and Summer Company programs.
BACKGROUND:
The Waterloo Region Small Business Centre (WRSBC) providesthousands of entrepreneurs with
training and support necessary to start and grow successful businesses. From concept, through start-
up and early growth stages of business, the Centre is a one-stop source for information, guidance and
professional advice on starting and running a successful. Servicing individuals of all ages and
educational background and businesses from all industry sectorsat all stages of business. WRSBC is
one of a network of 54 centres in Ontariosupported by the province.
The Kitchener Waterloo Region Small Business Centreacts as the business headquarters,
coordinating marketing, programs, and funding, Kitchener has 4.5 employees while the Cambridge and
Waterloo satellite offices eachhaveone employeepaid by there respective municipality.
WRSBC sources of funding include:
The Ontario Ministry of Economic Development Job Creation and Trade
Cities of Kitchener, Cambridge and Waterloo
Region of Waterloo
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
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Other sources of revenue include: Sponsorships, Projects/Programs and Event Fees
Special Projects
The City of Kitchener (Waterloo Region Small Business Centre) has received funding from the Province
of Ontario since 1998.The three-year agreement 2019– 2022 ensurescollaboration between
provincial and municipal governments’ commitment to working together to help entrepreneurs start and
grow a business.
REPORT:
The provincial funding agreement with the City of Kitchener and the Ministry of Economic Development
Job Creation and Trade will providethe Waterloo Region Small Business Centre with $456,552 annually
for each of the 3 years, $1,369,656 total.The funds support:
Core Business Services:
one-on-one business consultations,
workshops and events,
assistance with market research, business and marketing plans,
information to navigating government departments, agencies and regulations
assistance with registering a provincial master business license
community outreach activities
The funding supports two full-time jobs, promotional and event expenses.
Summer Company Program:
entrepreneurial training, mentoring and grantsfor students age 15-29starting and running a
business over the summer, eligible students must be returning to school.The funding supports
onepart-time job, program expenses and a grant up to $3000 for successful candidates.
Starter Company Program
entrepreneurial training, mentoring and grants for start-ups and growth companies. The funding
supports one part-timejob, program expenses and a grant up to $5,000 for successful candidates.
WRSBChas deliveredthe Summer Company program since 2001 and the Starter Company program
since 2014. Supporting entrepreneurs’results in the establishment of new businesses, the expansion of
existing businesses, leveraged investments and job creation.
Throughout the term of the agreement, WRSBC submits interim performance reports andrequests
incremental disbursementsbi-annually. In the past there have been opportunities toapply foradditional
funding during term of the agreement, it is important to respond to these opportunities in a timely manner.
Thesmall business centreswill collect monthly economic impact data for the province. In 2018, WRSBC
responded to over 43,000 inquiries, assisted 625 business start-ups and 159 businesses to grow,
resulting in 1,004 jobs created:
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Economic Impact 2018
Cambridge KitchenerWaterlooTotal
Inquiries 1,081 38,9633,32343,367
Business Started 123 375127625
Business Expanded 4 12134159
Jobs 128 6402361,004
On-on-one Consultations 143 1,4164552,014
Workshops3730586428
Attended Workshops361 2,8233423,526
Events Hosted & Co-hosted 1 48453
Attended Events 100 2,7651373,002
The provincial funding ensures collaborationandcommitment to working together with the
municipalities to help entrepreneurs start and growa business.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Strategic Priority: Strong & Resilient Economy
Strategy: #2.2 Support the attraction, retention and development of existing and
new industries within the regional economy working in collaboration with the
economic development corporation for Waterloo Region.
Strategic Action: # 26Make It Start
# 27 Make It Grow
FINANCIAL IMPLICATIONS:
None. The provincial fundingsupports the Small Business Centre core business services, summer
company and starter company programs.
COMMUNITY ENGAGEMENT:
Entrepreneurship and innovation contribute to economic growth in the community. The Centre provides
programs and services that support and complement other community entrepreneurial initiatives
essential to the commercialization of small business within the Waterloo Region ecosystem.
CONSULT: The Waterloo Region Small Business Centre facilitated four Community Engagement
sessions, “Small Business Matters”, in Cambridge, Kitchener/Waterloo, St Jacobs/Elmira and
Baden/New Hamburg, in 2015. Over 160 small businesses from all industry sector engaged discussion
around five questions. Over 2,000 ideas and opinions collected and analyzed resulting in WRSBC
identifying seven key areas of support for small business: Marketing, Mentoring, Education, Advocacy,
Small Business Hub, Collaboration and Funding. These themes inform the ongoing work, programs and
collaborative partnerships of the Small Business Centre.
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WRSBC conducts over 20 surveys annually with small business to get feedback and suggestions for
service and programimprovements.
COLLABORATE – Waterloo Region Small Business Centre communicates, consults and collaborates
with a broad range of community groups, organizations, agencies, secondary and post-secondary
institutes, municipal, regional and provincial governments to ensure the entrepreneurial services and
programs address the needs of small business in the community. The volunteers for the Waterloo Region
Small Business Centre and the Board of Advisors are representative of these community groups.
ACKNOWLEDGED BY:Justin Readman, General Manager, Development Services Department
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Draft budget
To: Ministry of Economic Development Job Creation and Trade
ponent
Applicant Name: Waterloo Region Small Busine
ect Management
each Marketing and Recruitment Recipient Name: City of Kitchener
FUNDING YEAR2019/20202020/20212021/2022TOTAL
BudgetBudget Budget
In CashIn CashIn Cash
PROJECT INITIATIVES EXPENSES
Project Delivery (A)
Project Delivery for SBEC Core Initiative (salaries, consultations, workshops,
172,552172552172552
outreach, events, marketing/advertising, and travel)
Project Delivery for Starter Company Plus Initiative (mentoring, grant
500005000050000
committee, workshops, outreach, events, marketing/advertising, and travel)
Project Delivery for Summer Company Initiative (training, mentoring,
380003800038000
workshops, outreach, events, marketing/advertising, and travel)
Subtotal (A) 260552260552260552781656
Administration (B)
(Max. 10% of total Expenses per Funding Year)
Project Administration (Courier, Phone, Office supplies, Rent, and Audit at the
500050005000
end of the term)
Subtotal (B)50005000500015000
Subtotal Expenses (A+B) 265552265552265552796656
Micro Financing for Approved Participants
Summer Company Initiative (C) 660006600066000
Starter Company Plus Initiative (D)125000125000125000
Subtotal Expenses (C+D)191000191000191000573000
TOTAL EXPENSES (A+B+C+D)4565524565524565521369656
FUNDS
Cash Contribution
Cash Contributions from Municipality and Other Sources - Only consider cash
0
contribution that can be audited (E)
Ministry Funds
456552
Maximum Funds per Funding Year from Ministry (F)456552456552
1369656
TOTAL FUNDS (E+F)4565524565524565521369656
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Waterloo Region Small Business Centre
Income Statement for the Year Ended December 31, 2018
(with comparatives for the year ended December 31, 2017)
20182017
REVENUES
Ministry of Economic Development, Trade
and Employment 476,624 723,203
Ministry of Research and Innovation 166,006 184,617
City of Cambridge 13,400 15,900
City of Kitchener 116,580 89,656
City of Waterloo 11,900 12,300
Region of Waterloo 50,000 50,000
Region of Waterloo - Self Employment
Program 10,500
Sponsorships 49,662 127,027
Memberships 1,700 1,995
Registration Fees 15,301 5,235
Room Rentals 339 565
Miscellaneous Revenue 530 375
912,5421,210,873
EXPENSES
Salaries and Wages 515,040 612,065
Administrative Expenses 51,138 129,985
Grants 285,050 118,779
Professional Services 45,865 260,742
Events and Publicity 27,118 78,632
Insurance 1,392 1,392
925,6031,201,595
Net Profit (Loss)(13,061)9,278
ACCUMULATED SURPLUS (DEFICIT)
Opening Balance93,11483,836
Net Profit (Loss)(13,061)9,278
Closing Balance80,05393,114
lo
Note: The 2018 loss was a planned loss to fund the Digital Main Street pilot project.
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