HomeMy WebLinkAboutCAO-17-011 - Waterloo Region Small Business Centre - Agreement with the Province of Ontario for Starter Company Plus Program
REPORT TO: Finance and Corporate Services
DATE OF MEETING: March 6, 2017
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: February 17, 2017
REPORT NO.: CAO-17-011
SUBJECT:City of Kitchener, Waterloo Region Small Business Centre, Agreement
with the Province of Ontario re: Starter Company Plus 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 Plus program that provides
training, mentorship and grants for entrepreneurs to start and grow their business. The
Province of Ontario’s contribution is $498,858 for the program. The City of Kitchener supporting
the agreement with a contribution of $15,000 from the Economic Development Reserve Fund.
The City of Kitchener agrees to administrate and disburse up to fifty $5,000 grants to individuals
successfully completing the program. Said agreement to be to the satisfaction of the City
Solicitor.
BACKGROUND: This report is a revision to the report dated December 5, 2016 CAO-16-36, which
was approved by Council. The Province has increased the contribution from $350,000 to $498,858.
The Small Business Centre has experience in delivering programs for entrepreneurs. 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.
Over 750 participants attended information sessions and 320 completed six business training modules,
received coaching from over 50 volunteer business mentors. Those who successfully completed a
viable business plan were eligible to apply for a startup grant from the Province of Ontario resulting in
the successful disbursement of 75 grants of $5,000 to entrepreneurs.
The Small Business Centre monitored the progress of the Youth Starter Company participants and
successful grant recipients and saw over 140 small businesses created resulting in 269 jobs created
across the Waterloo Region.
The Province of Ontario has created a new Starter Company Plus program for entrepreneurs of all
ages and all industry sectors. The Agreement with the City of Kitchener, Waterloo Region Small
Business Centre, is for 2 years ending March 31, 2019.
*** 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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REPORT:
The new Starter Company Plus program costs over two years is $593,858. The Province of
Ontario’s contribution is $498,858, with $248,858 allocated to operational expenses and $250,000
allocated to support up to fifty, $5,000 grants. An additional $95,000 from Municipal and Private
sector contributions is allocated to operational expenses including the City of Kitchener contribution
of $15,000. The program will employ 1.5 full time positions over 2 years.
The Starter Company Plus program is open to entrepreneurs of all ages and all industry sectors. The
program provides training, mentoring and grants to those starting or growing a business and is less
than 3 years old. Individuals completing the training will develop and submit a business plan to apply
for the grant. Plans are evaluated by staff and a volunteer committee of experienced business
professional to evaluate the viability of the plan. The committee provides feedback and makes
recommendations to approve a grant of up to $5,000. Grants are awarded to the individual from the
funds allocated by the Province of Ontario.
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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