HomeMy WebLinkAboutCAO-14-008 - Province of Ontario Funding - Youth Entrepreneurship Program Staff Report
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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.
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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
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