Report to: Economic Development Committee Report Date: May 22, 2007

SUBJECT: Markham Small Business Enterprise Centre Business Plan

PREPARED BY: Sandra Tam, Manager, MSBEC, (905)248-2736

RECOMMENDATION:

That the report entitled “Markham Small Business Enterprise Centre Business Plan” be received and endorsed.

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

EXECUTIVE SUMMARY:

The Markham Small Business Enterprise Centre is a core service within the Town’s economic development program. The MSBEC’s 2007-08 Business Plan is designed to build on the success of the program to-date, and to respond to the growing demand for its services through development of new partnerships, service delivery innovations, and pursuit of increased core funding from its public sector and private sector partners.

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

PURPOSE:

To highlight the performance and business results achieved in 2006/07, and to present the Markham Small Business Enterprise Centre’s 2007-08 Business Plan.

BACKGROUND:

The MSBEC was established in June 2003 and is funded by the Town of Markham and the Ontario Ministry of Small Business and Entrepreneurship, in partnership with the Government of Canada, and the private sector. MSBEC provides Markham’s aspiring entrepreneurs and existing small businesses with high quality one-on-one management consulting, educational training, and the business resources needed to sustain their growth in today’s intensely competitive marketplace. MSBEC focuses on providing support to start-up and small enterprises (SMEs) during their first five years of operation by building strategic partnership, providing excellent management assistance, educational programs and helpful resources. The MSBEC is managed by a full-time Markham economic developer, Sandra Tam, who is assisted by contract and part-time administrative staff.

OPTIONS/ DISCUSSION:

The MSBEC is assisted by an Advisory Board of funding sponsors and partners that meets quarterly to review the MSBEC operation and provide feedback and advice relating to the strategic direction of the Centre. Members of the Advisory Board are:

Co-Chairs:

Stephen Wong Sanning Cheng

President, ESM Group Inc. Partner, BDO Dunwoody LLP

Members:

Tony Wong Erin Shapero

Regional Councillor Ward 2 Councillor

Chair of Economic Development

Keith Bray, President & CEO Reza Alavie, Professor

Markham Board of Trade Seneca College

Jennifer Figueira, Sales Manager Ted Northcott, Regional Advisor

RBC, York South Region Ministry of Small Business & Entrepreneurship

Stephen A. Chait

Director of Economic Development

Performance indicators

Among the key accomplishments of the MSBEC in 2006-07 were:

1) Support and Encourage Entrepreneurship:

· Increased community awareness through implementation of several successful marketing strategies, contributing to the increase in client contacts. In 2006-07 MSBEC received/completed:

2,131 general client inquiries

30,068 web-based client contacts

250 one-on-one consultations

· Increased volume of small business seminars/workshops:

15 small business seminars/workshops (attendance: 648)

28 general/Youth outreach events (attendance: 1,982)

· In conjunction with local accounting community, the Accounting Mentorship Program provided professional advice to 21 clients.

· Partnered with Seneca College to offer “Pathways to Success” – the Ontario Management Development Program and Entrepreneurship Certificate Program, which were specially designed to assist small business clients in achieving entrepreneurial success.

· Celebrated the “Small Business Month” with a premier small business forum that attracted more than 90 small business owners and leaders from Markham and the surrounding area.

2) Promote and Encourage Youth Entrepreneurship Among Markham Youth:

· Delivered the fourth Markham Secondary School Business Plan Competition to Markham youths. Four schools participated and 28 quality business plans were received.

· Successfully administered the Ontario Summer Company Program. Five Markham youth received awards after successful completion of the Program. Since 2001, 27 students have received awards through MSBEC.

· Assisted two young entrepreneurs in applying successfully to the Canadian Youth Business Foundation for a total loan amount of $30,000.

3) Maximize and leverage partnerships and collaborations to benefit clients and stakeholders:

· Co-branded small business seminars with Markham Board of Trade. Markham Board of Trade offers privileged membership program to MSBEC clients.

· Partnered with Professional Engineers, Ontario – York Chapter to deliver small business workshops

· Delivered a joint program with Markham Public Libraries to address clients’ market research needs.

· Co-hosted two Small Business Month events with Markham Public Libraries.

· Supported YMCA Business Centre in delivering the International Women’s Day Conference.

· Initiated partnership with Seneca College to deliver special Business Management Programs.

4) Increase external funding and generate earned revenue:

· Maintained core funding from Ontario Ministry of Small Business and Entrepreneurship (OMSBE).

· Obtained non-regular additional funding of $30,000 from OMSBE.

· Raised $8,600 cash contribution from private sponsors.

· Received $8,000 in-kind contribution from private sponsors.

· Earned event revenue $2,700.

5) Promote and position Markham/MSBEC as a leader in providing business development assistance:

· Received extensive media coverage for events hosted.

· Appeared in Fairchild Television’s “Leisure Talk” to promote MSBEC and Youth Programs.

· Presented (in English and Mandarin) 7 “Starting A Small Business In Ontario” seminars to ethnic business associations and community service groups.

MSBEC’s efforts have made a demonstrable impact on the small business community. Based on the results of an on-going client survey of clients attending consultations at MSBEC in 2006-07, 68 businesses have either been started or expanded.

Moreover, 182 businesses were registered through the Ontario Business Connects terminal in MSBEC in 2006.

MSBEC 2007-08 Financial Plan

The MSBEC has maintained an excellent record of leveraging its core funding from the Town of Markham, and achieving year over year increases in earned revenue, all of which are deployed as operating funds. In 2006-07 the Town’s financial contribution of $117,166 represented 58% of the MSBEC’s annual budget. The Provincial contribution of $70,500 represented a 17% increase over 2005-06. In 2007-08, MSBEC intends to leverage Markham’s contribution through sponsorships, grants, and earned revenue.

2007-2008: Funding of MSBEC

Town of Markham Contribution (salary, rent, cash):

· MSBEC operating budget $45,598

· Assumed rent (paid from within ISCM capital) 36,000

· Indirect cost (Economic Devt. Dept. operating budget) 35,568

Ontario Government Contribution (earned revenue):

· MSBEC operating budget 55,000

· Additional revenue potential 15,500

Sponsorships:

· MSBEC operating budget 10,834

Other Earned Revenue – Seminars/Workshops/Programs:

· Additional revenue potential 3,000

Total Funding Revenue $201,500

2007-2008: MSBEC Expenditures

Manager (salary, benefits) $77,000

Part-time staff 20,000

Marketing/Promotion, travel expense 22,000

Office Space 36,000

Photocopying, printing, office supplies 13,000

Publications, advertising, telecom 10,000

Meeting Expenses 6,000

Promotional DVD 15,000

Misc. 2,500

Total Expenditure $201,500

MSBEC Activity Targets in 2007-08

To-date, the MSBEC has been successful in achieving its goals and missions through addressing client needs, leveraging partnerships as well as promoting and positioning MSBEC as a leader in providing business development assistance. The year 2006-07 was filled with many challenges, opportunities, and successes. MSBEC served an increasing number of clients, enhanced and implemented new programs, created a greater awareness in the community and raised substantial dollars to fund its operations.

The increased awareness and high profile of MSBEC have resulted in an ever-growing demand for the services of the Centre. Continued growth in demand for services will be further stimulated by the release of a recently produced DVD. MSBEC has maintained a balanced budget for the past years, despite increased costs of running the office and delivering the expanded programs. In 2006-07 the physical capacity of the MSBEC and its staff was achieved, and on occasion exceeded, resulting in a need to scale back operations to reflect the capacity of the Centre, and the expected service levels. As a result, the 2007-08 program has been designed to be delivered within the existing budgetary and staffing capacities of the Centre. The annual objectives have been adjusted to reflect the need to maintain quality of service and to be fiscally responsible. As illustrated below, the MSBEC will significantly reduce the number of presentations given by staff in favor of maintaining a high level of consultations and web-based information dissemination. The loss of presentations will be off-set by the use of the new DVD as a means of publicizing the Centre and offering presentation-style materials to interested and prospective clients.

The MSBEC will continue to deliver outreach presentations in the local area focusing on youth (entrepreneurship classes), business associations, and other relevant groups. The MSBEC will continue to raise public awareness by hosting premier business events such as the Young Entrepreneur Awards Presentation and the Small Business Month Business Conference as well as participating in joint business functions.

A complete description of MSBEC’s programs and services is provided in the enclosed Appendix A. A summary table illustrating the historic and forecast performance targets for 2007-08 is presented below:

2005-06 2006-07 2007-08 (projected)

§ General Client Inquiries 2,090 2,131 2,150

§ Web-based Client Contacts 28,634 30,068 31,000

§ One-on-One Consultations 214 250 240

§ Small Business Seminars 15 15 12

- Attendance 637 648 600

§ Outreach Presentations 32 29 12

- Attendance 1,640 1,968 1,000

In the face of growing demand for services, and limited funding resources, the MSBEC Manager and the Director of Economic Development will monitor the demand for service over the course of the year and will pursue discussions with community partners regarding strategies for increasing the capacity of the MSBEC to service growing demand through new partnerships, service delivery paradigms, and potentially increased financial support from the founding partners.

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

Not applicable

ENVIRONMENTAL CONSIDERATIONS:

None

ACCESSIBILITY CONSIDERATIONS:

None

ENGAGE 21^ST CONSIDERATIONS:

The MSBEC provides services that contribute to the quality of life in Markham and that are consistent with the corporate vision of being the leading high-tech community in Canada.

BUSINESS UNITS CONSULTED AND AFFECTED:

MSBEC Advisory Board.

RECOMMENDED

BY: ________________________ ________________________

Stephen Chait, EcD., CMC Jim Baird, M.C.I.P., R.P.P.

Director of Economic Commissioner of

Development Development Services

ATTACHMENTS:

MSBEC Business Plan 2007-2008.