DEVELOPMENT SERVICES COMMITTEE

 

 

 

 

 

TO:

Mayor and Members of Council

 

 

 

 

FROM:

Jim Baird, Commissioner of Development Services

Stephen Chait, Director of Economic Development

 

 

 

 

PREPARED BY:

Sandra Tam, Manager, MSBEC

 

 

 

 

DATE OF MEETING:

2005-Mar-22

 

 

 

 

SUBJECT:

Markham Small Business Enterprise Centre Business Plan

 

 

 

 

 

RECOMMENDATION:

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

 

 

PURPOSE:

To inform Council of the MSBEC’s organizational status and performance, and proposed 2005-2006 business activity targets.

 

 

BACKGROUND:

The MSBEC was established in June 2003 and is funded by the Town of Markham and the Ontario Ministry of Economic Development and Trade, in partnership with the Government of Canada, and the private sector. The MSBEC is managed by a full-time Markham economic developer, Sandra Tam, who is assisted by occasional contract and part-time administrative staff.

 

The 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.

 

The MSBEC is assisted by an Advisory Council 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 Council are:

 

 

Chair:                           John Scholz, C.A.

                                      Stamatopoulos & Scholz, Chartered Accountants

 

Members:                    Joe Virgilio, Ward 3 Councillor

                                      Chair of Economic Development Committee

 

                                      Jim Jones

                                      Regional Councillor

 

                                      Erin Shapero

                                      Ward 2 Councillor

 

                                      Stephen Chait, Ec.D.

                                      Director of Economic Development

 

                                      Madge Linton, Project Leader

                                      Ontario Ministry of Economic Development and Trade

 

                                      Chris Ronald, Manager, Business Banking

                                      RBC Royal Bank, York Regional Business Banking Centre

 

                                      Brian Fernandes, Account Manager

                                      RBC Royal Bank, York Regional Business Banking Centre

 

                                      Stephen Wong, President

                                      ESM Group Inc.

 

                                      Sanning Cheng, C.A.

                                      BDO Dunwoody LLP, Toronto North

                           

 

Performance indicators

 

Among the key accomplishments of the MSBEC in 2004 were:

 

Ø      Increased community awareness through implementation of several successful marketing strategies, contributing to the increase in client contacts.  In 2004 MSBEC received/completed:

 

§         2,095 general client inquiries

§         16,215 web-based client contacts

§         220 consultations

 

Ø      Increased volume of small business seminars/workshops:

§         15 small business seminars/workshops (attendance: 898)

§         28 general outreach/networking events (attendance: 2,074)

 

Ø      Established strong relations and support with community partners.

 

Ø      Initiated and launched the Accounting Mentorship Program in conjunction with local accounting community, providing advice to 18 clients.

Ø      Initiated and delivered a business training program for potential entrepreneurs, providing essential business skills to a total of 26 participants.

 

Ø      Delivered the second Markham Secondary School Business Plan Competition to Markham youths.

 

Ø      Presented the “Celebrate Women Entrepreneurs” and “Salute to Small Business” networking and knowledge exchange events, with over 200 attendees.

 

Ø      Developed strong media relationships with local TV and community newspapers.

 

MSBEC’s efforts have made a positive impact on the small business community.  Based on the results of on going client survey of clients attending consultations at MSBEC in 2004:

-         62 businesses started/expanded

-         91 jobs were created

 

Moreover, more than 100 businesses were registered through the Ontario Business Connects terminals in MSBEC in 2004.

 

 

Financial indicators

 

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 2004-05 the Town’s financial contribution of $65,000 represented less than 50% of the total MSBEC annual budget. In 2005-06 the MSBEC intends to leverage the Town’s contribution by 120% through increased sponsorships, grants, and earned revenue.

 

2005-2006: Funding of MSBEC

Town of Markham Contribution (in kind/cash)               $75,000

MEDT Contribution –

     Services Rendered                                                             55,000

Sponsorships (anticipated)                                                   15,000

HRDC Contribution                                                                20,000

Revenue – Seminars/Workshops/Programs                        3,000

Total Funding (including in-kind) & Revenue               $168,000

 

2005-2006: MSBEC Expenditures

Staff costs                                                                              $99,000

Office Space                                                                            36,000

Travel Expenses                                                                       2,000

Printing, copies and office supplies                                    14,000

Publications                                                                               2,000

Advertising                                                                               4,000

Telecommunications                                                                2,000

Meeting Expenses                                                                    5,000

Misc                                                                                            4,000

Total Expenditures                                                             $168,000                                                                 

 

 

 

 

MSBEC Activity Targets in 2005-06

 

The MSBEC is a dynamic business and educational service. A complete description of its programs and services is provided in the enclosed Appendix A. A series of tables illustrating the performance targets for 2005-06 are presented below:

 

 

 

Table 1: CLIENT SERVICE PERFORMANCE TARGETS FOR 2005-2006

 

 

ACTIVITY

Volume

(2005-2006) Projected

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Annual

General Inquiries

(Telephone Calls,

Walk-ins, E-mails)

 

550

 

450

 

550

 

650

 

2200

 

 

 

 

Table 2: CLIENT CONSULTATION PERFORMANCE TARGETS FOR 2005-2006

 

 

VOLUME (2004-2005)

 

VOLUME (2005-2006)

ACTIVITY

Projected

Actual

Projected

 

 

 

1st Quart

2nd Quart

3rd Quart

4th Quart

Annual

Consultation -

New  Start-Up Client

144

167

45

30

30

45

150

Consultation –

New Existing Client

44

36

12

10

10

13

45

Consultation –

Repeat Start-Up Client

8

21

5

5

5

5

20

Consultation –

Repeat Existing Business

4

6

1

1

1

2

5

Total New and Repeat Clients

200

230

63

46

46

65

220

 

 

 

 

 

 

Table 3: EDUCATION/SEMINAR PERFORMANCE TARGET FOR 2004-2005

 

 

ACTIVITY

Volume

(2004-2005)

Attendance

(2004-2005)

Volume

(2005-2006)

Attendance

(2005-2006)

 

Projected

Actual

Projected

Actual

Projected

Projected

Seminars/Workshops

15

15

1,000

898

15

1,000

General Outreach

15

24

1,200

1,821

15

1,500

Events Hosted

4

4

400

253

4

320

 

 

 

 

Table 4: FACILITATED CONSULTATIONS PERFORMANCE TARGET FOR 2005-2006

 

 

 

 

Activity

 

Projected Target

2005-2006

 

Apr-Jun

Jul-Sep

Oct-Dec

Jan-Mar

Total

Accounting

6

6

10

10

32

Marketing

2

4

6

8

20

 

 

 

Other Considerations in 2005-06

 

The market for MSBEC services continues to grow, in large part due to population and economic growth, and in part also due to the growth of awareness of the service and the increased awareness of the MSBEC in the Markham community. In 2005-06 this growth in demand for service will likely be augmented due to the closing of the YMCA’s business counseling services (due to a loss of federal government assistance). The MSBEC Manager and the Director of Economic Development will monitor the demand for service over the course of the year and will advise the Town should any modifications to service delivery be warranted.

 

Similarly, the Manager and Director will pursue discussions with community partners (including the Markham Board of Trade, Seneca College, and the Markham Public Libraries) regarding the prospects for increasing the capacity of the MSBEC to address future growth through new partnerships and service delivery paradigms. Among the potential ventures to be considered is the feasibility of relocating the MSBEC to larger premises within a library or on the new Seneca College Markham campus, to be co-staffed and supported by a community partner(s).

 

 

FINANCIAL CONSIDERATIONS:

none.

 

ENGAGE 21ST 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.

 

ATTACHMENTS:

MSBEC Business Plan 2005-2006.

 

 

 

 

 

 

 

Stephen Chait, Ec.D., CMC

Director of Economic Development

 

Jim Baird, M.C.I.P., R.P.P.

Commissioner of Development Services