HomeMy WebLinkAboutDSD-2022-166 - Digital Service Squad Funding 2022-2024
Development Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: April 25, 2022
SUBMITTED BY: Chris Farrell, Manager, Small Business 519-741-2200 ext. 7294
PREPARED BY: Chris Farrell, Manager, Small Business 519-741-2200 ext. 7294
WARD(S) INVOLVED: All
DATE OF REPORT: April 5, 2022
REPORT NO.: DSD-2022-166
SUBJECT: Digital Service Squad Funding 2022-2024
RECOMMENDATION:
That the Mayor and Clerk be authorised to sign a funding agreement with the Ontario
Business Improvement Area Association (OBIAA) to enable the Small Business
Centre to deliver the Digital Service Squad program, in accordance with report DSD-
2022-166, with said agreement to be to the satisfaction of the City Solicitor: and
further,
That the General Manager, Development Services be authorized to execute on behalf
of the City of Kitchener any amendments to the funding agreement provided such
amendments are to the satisfaction of the City Solicitor.
REPORT HIGHLIGHTS:
The purpose of this report is to seek Council support to enter into an agreement with
the Ontario Business Improvement Area Association to continue the Digital Service
Squad for an additional two years.
The key finding of this report is that the Digital Services Squad is an important service
for small businesses as they continue to recover from the impacts of the pandemic and
adapt to shifting consumer demands for e-commerce services.
The financial implications are that
successful, the City would receive $440,000 in provincial funding.
Community engagement included ongoing consultation with small businesses, including
2,200 local businesses who have been supported by the Digital Services Squad to date.
This report supports A Vibrant Economy.
EXECUTIVE SUMMARY:
The Waterloo Region Small Business Centre is applying for $440,000 in funding from the
Ontario Business Improvement Area Association (OBIAA) to deliver the Digital Main Street
Digital Service Squad program, from April 1, 2022, to March 31, 2024. The program is
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designed to help brick and mortar small businesses to adopt and implement new
technology and digital marketing tools. A team is hired and trained to provide one-on-one
support to small businesses.
BACKGROUND:
As part of the Digital Main Street Program, the Digital Service Squad (DSS) helps
businesses with fewer than ten employees implement digital marketing, e-commerce, and
web development tools. The Small Business Centre has offered Digital Main Street
services since 2018 when it ran a collaborative pilot project with the founders of the
platform, the City of Toronto Enterprise Centre. Subsequently, the Provincial Government
has partnered with the Ontario Business Improvement Area Association to administer the
funding for the Digital Service Squad program, delivered throughout the province.
The Small Business Centre has successfully delivered the program with three funding
rounds from 2019 to 2022. A team of 4 trained post-graduate students meet with small
businesses at no cost to help them complete an online assessment and introduce them to
online training modules to build their knowledge and skills. They can also assist with
developing their Digital Transformation Plan (DTP) and then help them apply for a $2,500
grant from OBIAA to implement the plan. This one-on-one DSS assistance also includes
basic website set-up, Google My Business profiles, 360º photos, SEO, analytic tracking, e-
commerce and website recommendation, creation, or enhancement of social media
presence.
The customer journey starts with a squad member helping a business complete a Digital
Assessment of its existing digital assets and resources. The assessment serves as their
roadmap to identify, improve, and adopt new technologies. The digital assessment
-l improvements
and sets the framework for a digital marketing strategy. Businesses meet with a Digital
Service Squad member who makes recommendations for technologies, tools, and an
executable plan. Services include:
setting up Google my Business,
conducting a website or social media audit
recommend plugins such as online appointment calendars, point of sale/inventory
systems
creating content and a social media calendar
setting up tools to track analytics
optimising SEO
the framework for an essential website
or connect them to one of the other Digital Main Street programs
The Small Business Centre has employed 22 co-op and post-graduate students for this
program over the past three years, assisting 2,200 main street businesses during that
time. The team also helped 247 businesses secure the $2,500 grant.
REPORT:
The Province has recently earmarked additional funding to extend Digital Service Squads
across the province. The Waterloo Region Small Business Centre has applied for
$440,000 in funding over two years. If successful, the funding would support 4 full-time
jobs, direct expenses, professional services, equipment, and advertising collaterals. The
-kind
support by co-marketing the program.
The Digital Service Squad would provide services to up to 1400 businesses from April 1,
2022, to March 31, 2024. This program targets businesses with fewer than 50 employees
having a commercial location paying commercial taxes. In addition, where COVID-19
restrictions exist, DSS members provide one-on-one support through phone calls, and
video-based (Zoom) calls.
As small businesses continue to recover from the impacts of the pandemic, it is clear that
consumer expectations of digital services (e-commerce, online ordering, delivery services,
social media presence, etc.,) are here to stay. While many businesses have already
adapted to these changes, many continue to learn, innovate and adapt their businesses,
while other are just beginning their transformation. For many bricks and mortar
businesses, a hybrid revenue model (combining in-person and online sales) is necessary
for ongoing success. Providing the DSS for the next two years will allow the City to
continue to support businesses seeking to diversify their business model.
STRATEGIC PLAN ALIGNMENT:
This report supports A Vibrant Economy.
FINANCIAL IMPLICATIONS:
The proposed agreement would provide funding to support programming in the following
ways:
Digital Service Squad 2022 - 2024 2022-23
2023-24 Total
Wages and Benefits $203,700 $212,100 $415,800
Travel expenses $3,600 $3,600 $7,200
Advertising $3,600 $2,400 $6,000
Professional Consultant $2,500 $2,500 $5,000
Software and hardware $5,400 $600 $6,000
Total $218,800 $221,200 $440,000
The Small Business Centre Manager will submit monthly and final reports to the OBIAA.
No direct operating funding is required. The City, through the Small Business Centre,
provides in-kind supports.
COMMUNITY ENGAGEMENT:
CONSULT: The Waterloo Region Small Business Centre conducts over ten surveys
annually with small businesses to get feedback and suggestions for service and program
improvements.
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 businesses in the
community. The Small Business Advisory Committee volunteers represent twelve industry
sectors across the region.
INFORM
the council / committee meeting.
APPROVED BY: Justin Readman, General Manager, Development Services