HomeMy WebLinkAboutCAO-16-036 - Waterloo Region Small Business Centre - Starter Company Program
REPORT TO: Finance and Corporate Services
DATE OF MEETING: December 5, 2016
SUBMITTED BY: Chris Farrell, Manager Small Business Centre
519 741 2200 x 7294
PREPARED BY: Mistie Brown, Program Assistant, Small Business Centre
519 741 2200 x7176
WARD(S) INVOLVED: All
DATE OF REPORT: November 10, 2016
REPORT NO.: CAO-16-036
SUBJECT: City of Kitchener – Waterloo Region Small Business Centre –
Agreement with the Province of Ontario re: Starter Company
Program
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RECOMMENDATION:That the Mayor and Clerk be authorized to sign a two year
funding agreement with the Province of Ontario for the Starter Company program that
provides training, mentorship and grants for entrepreneurs to start and grow their
business. The City of Kitchener supporting the agreement with a contribution of $15,000
from the Economic Development Reserve Fund. The Province of Ontario’s contribution
is $350,000 for the program to be delivered by the City of Kitchener’s (Waterloo Region)
Small Business Centre. Said agreement to be to the satisfaction of the City Solicitor.
BACKGROUND:
The City of Kitchener’s Small Business Centre provides entrepreneurs with guidance, business
training, events, one-on-one coaching, mentoring and access to industry professionals. Over the
past 15 years the Waterloo Region Small Business Centre has assisted over 390 youth age 15-
29 to start and grow a business and provided entrepreneurial training to over 850 youth. The
City of Kitchener’s Waterloo Region Small Business Centre location currently operates with 4.5
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 Starter Company program was originally announced in 2013 under Ontario’s Youth Jobs
Strategy that aimed 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 initial pilot
program ran over two years from 2014 – 2016. It provided mentoring, training and capital for
youth, ages 18-29 (not in school fulltime), to start, grow or buy a small business.
The Starter Company Program was 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 and initially received 30 grants to
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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disburse. Due to the program’s success in Waterloo Region’s dynamic entrepreneurial
ecosystem along with WRSBC’s exemplary program management, the Waterloo Region’s initial
36 grants were doubled, resulting in the allocation and successful disbursement of 66 grants of
$5,000 to small business owners.
Over 750 participants attended information sessions for the program and 320 went on to
complete six business training modules, received coaching from over 50 volunteer
business mentors and advisors to assist with the completion and implementation of a business
plan. Those who successfully completed a viable business plan were eligible to apply for a
startup grant from the Province of Ontario. The Small Business Centre monitored the progress
of the participants and successful grant recipients and saw over 150 small businesses created
resulting in 474 jobs created across the Waterloo Region.
REPORT:
The Province of Ontario has now extended this successful program model to entrepreneurs of
all ages. The program’s originally eligibility requirement of youth ages 18-29 (not in school full
time) has been lifted after identifying the need for funding, training and mentorship for small
business owners over the age of 30. The program will now be open to entrepreneurs of all ages.
Total project cost is $385,000 over a two year period. The Province of Ontario’s contribution
amount is $350,000. The City of Kitchener, other municipalities and private sector will
contribute $35,000.
The funding will cover up to 60 grants for entrepreneurs to start, grow or buy a business, wages
and benefits for 1.5 full time staff, and operations (i.e. direct overhead costs such as: marketing,
program materials, travel, meeting expenses, audit fee, office supplies and printing) over a two
year period.
The Manager will submit monthly and annual reports to the Province.
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: # 26 Make It Start
# 27 Make It Grow
FINANCIAL IMPLICATIONS:
City of Kitchener $15,000 – Economic Development Reserve Fund
ACKNOWLEDGED BY: Jeff Willmer CAO
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