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HomeMy WebLinkAboutCAO-14-008 - Province of Ontario Funding - Youth Entrepreneurship Program Staff Report KI (A Os Office www1itc renerra REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: February 3, 2014 SUBMITTED BY: Chris Farrell, Manager, Waterloo Region Small Business Centre 519 741-2200 ext. 7294 PREPARED BY: Chris Farrell, Manager, Waterloo Region Small Business Centre WARD(S) INVOLVED: DATE OF REPORT: January 17th, 2014 REPORT NO.: FCS— 14-008 SUBJECT: Province of Ontario Funding -Youth Entrepreneurship Program RECOMMENDATION: That the Mayor and Clerk be authorized to sign a two year funding agreement with the Province of Ontario to undertake the "Starter Company" a Youth Entrepreneurship program providing mentoring and training for youth age 18 — 29 to start a business. The program will be delivered by the Kitchener Waterloo Region Small Business Centre. Said agreement to be to the satisfaction of the City Solicitor. BACKGROUND: City of Kitchener-Waterloo Region Small Business Centre (WRSBC) The City of Kitchener Economic Development Department unit The Waterloo Region Small Business Centre was established in 1999 and is in a network of 57 Province of Ontario's Small Business Enterprise Centres. The Centre provides information, workshops, events, guidance and consultation on a variety of issues to small business owners and individuals wishing to start and run a business. WRSBC Annual funding sources include: • the Ontario Ministry of Economic Development, Trade and Employment, • the Region of Waterloo • the Cities of Kitchener, Cambridge and Waterloo • Other sources of revenue include: Sponsorships, Projects and Event Fees The organization is dedicated to diligent fiscal practises and operations management, and has operated in a small surplus for over 5 years. The City of Kitchener's Waterloo Region Small Business Centre location currently operates with 3.5 Full time employees and holds meetings six times a year with a volunteer Board of Advisors consisting of 10 local business professionals and funders. The Waterloo Region Small Business Centre has delivered youth entrepreneurship programs for over 10 years. For example, the Summer Company program has assisted 183 students age 15-29 to start and run a summer business. On completion of Summer Company students will return to school. 2 - 1 Staff Report KI (AO s Office www1itchener ra The "Starter Company" program is a key part of Ontario's comprehensive Youth Jobs Strategy that was announced in the 2013 budget. The Youth Jobs Strategy aims to invest$295 million over two years to help young people find jobs or start their own business while helping employers find the skilled workers they need to thrive in the global economy. The "Starter Company" program will provide mentoring, training and capital for youth to start, grow or buy a small business. For the purposes of this Program, youth are defined as those between 18 and 29 years of age. The Starter Company Program will be delivered by 57 Small Business Enterprise Centres (SBECs) that are a part of Ontario's Network of Entrepreneurs (ONE). Waterloo Region Small Business Centre Kitchener is within the network of SBECs. Youth aged 18—29, who are not full time students, are eligible to apply for "Starter Company". This two year agreement with the Province of Ontario and the City of Kitchener`s Waterloo Region Small Business Centre location will provide $155,000 of funding over 2 years. Eligible youth will enter into the program to complete six business training modules, receive coaching from volunteer business mentors and small business advisors to assist with the completion and implementation of a business plan. Those who successfully complete a viable business plan are eligible to apply for a startup grant from the Province of Ontario. The Small Business Centre will continue to monitor the progress of the successful grant recipients during their first year in business. The province has initially allocated 30 grants to the Waterloo Region. The $155,000 of funding over two years for the Starter Company Program will allow the Centre to hire the equivalent of 1 FTE. The program fund will cover wages and benefits, and direct overhead costs such as: marketing, program materials, travel, meeting expenses, audit fee, office supplies and printing. Two part-time positions will include a Youth Program Coordinator and Administration/Communications position. The budget outlines in-kind contributions of $140,524 for the program including: management time, volunteer mentor time, facilities, equipped workstations, and accounting, printing and office supplies. This program will recruit volunteer business professionals to act as mentors for the youth entrepreneurs. The Manager will submit monthly and annual reports to the Province. Working with the finance department, a final audit of the 2 year program will be submitted by June 2016. REPORT: ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Entrepreneurship and innovation contribute to economic growth in the community. This program ensures youth have the opportunity to participate in emerging economic clusters equipped the knowledge and tools essential to commercialization of their products and services. The Waterloo Region Small Business Centre aligns its goals with the City of Kitchener Economic Development Strategy 2011-2015. Kitchener is a great place to start a business with the best programs, facilities and community support for business owners. FINANCIAL IMPLICATIONS: None ACKNOWLEDGED BY: Jeff Willmer, CAO 2 - 2 r O V M O 0 0 0 0 0 0 0 0 0000 O O O O N O O NO O 0 0 0 O O O O N O W 0 0 C O 0 W M O M N 0 N U) O O O V O O O O O O O V J --o N O o O o O N H Y a O N r N N O 0 N fA V N fA fA V F c N fA fA H U U 0 K y a 0 V M V O O O O O O O O O rc L r m 0 0 0 0 0 00 O o r r O M N V N V M O O W mt M OD N r M N ~O �V N� fA fA cM cM cM fA i0 W fA F - O O O O O O O 0 O O N O N V _ Y a O N W EA N N EA EA (O A A A A i c - O U N N O n N F r ii } O 'o y N O O 0000 0 00 O M N O O O O O O O O N W E I� O�0 0� N6A O V C M ON EA r m W EA EA EA EA 7n � C c� O N O O O 0 0 0 y 0 O O O O OWN 0 O _ _ fA N N fA fA vc 0 r U N ti,} o.0 4 N N M 0 0 0 0 0 00 I� s N 'N M O W W O O N O ON N y Q1 E M N V V fA fA fA fA fA fA C EA I� f/} W fA fA fA fA a � q O Y 2 0 H N o c L N N - c � M o ( �� h Q r U US N y N N N C rn G w c O } O N S D o p O m N o N'iP O G G N O v N G `n a °s h s y E o` 'a N ° - & W ~ e OO O N N 0 0 „ w i U ° v c ° o W U `0 0 L H D N W W O O Q w N C = O N C N o - b N O W c C v o q D U1 a v c L U! 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