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Date:January 5, 1999
To:Economic Development Committee
From:Joe Halstead, Commissioner of Economic Development, Culture and Tourism
Subject:Toronto Small Business Enterprise Centre/MEDTT/Public and Private Sector
Partnership
Purpose:
To inform and seek support from members of City Council for the establishment of a new
Toronto Small Business Enterprise Centre and to proceed in partnership with the Ministry of
Economic Development, Trade and Tourism (MEDTT) in the delivery of this
program/service.
Funding Sources, Financial Implications and Impact Statement:
Endorsement of the Toronto Small Business Enterprise Centre as recommended in this report
will require the City of Toronto to contribute professional and support staff, facilities, and
program funding. This equivalent amount has already been included in the approved budget of
the Economic Development Division.
As a result of establishing a partnership with both the public and private sectors, additional
direct and indirect financial and in-kind resources will contribute towards the overall program
on an annual basis.
Recommendations:
It is recommended that:
- the City of Toronto proceed to sign a Letter of Agreement with the Ministry of Economic
Development, Trade and Tourism (MEDTT) regarding the establishment of a Toronto
Small Business Enterprise Centre (Appendix 1);
- the Economic Development Division report back to the Economic Development
Committee with further details regarding the composition of the public/private sector
partnership;
- the Economic Development Division prepare a business plan and report back to the
Economic Development Committee;
- the appropriate City officials be authorized and directed to take the necessary action to give
effect thereto.
Council Reference/Background/History:
The existing Toronto Small Business Self-Help office (Scarborough and Toronto locations)
were originally established in 1987 as part of the provincial network of Business Self-Help
Offices. The Self-Help program consists of partnerships between the Province of Ontario and
various municipalities throughout the province. The program was established to provide
information and advice primarily to individuals interested in starting a small business.
Services currently available through the Toronto Self-Help Office include:
- free consultation services on business planning etc.;
- a variety of low cost seminars on small business topics;
- a walk-in resource centre with small business reference publications, and;
- Internet access available to the public to conduct business research.
These two locations (Toronto City Hall and Scarborough Civic Centre) assist approximately
20,000 clients annually.
In 1997, the Provincial government announced plans to consolidate the current network of
Self-Help Offices throughout the province with Enterprise Centres. This new direction is a
result of an evaluation of the 10 year Self-Help program and addressing concerns that the
scope of the current self-help program is limited in its ability to serve its client base.
Currently, there are five Small Business Enterprise Centres (Hamilton-Wentworth, Brampton,
London, Ottawa and Sudbury) operating in partnership with the province under the new small
business model.
Comments and/or Discussion and/or Justification:
In 1998, the Provincial Government (MEDTT) approached the newly amalgamated City of
Toronto to enter into a partnership to establish a new Toronto Small Business Enterprise
Centre due to the closure of the existing Self-Help Program throughout the province. Selected
urban centres (including Toronto) have been targeted as areas for small business
program/service delivery under the new Enterprise Centre model.
The City of Toronto is the 6th largest urban area centre in North America. With an estimated
80,000 business establishments, Toronto is Canada's leading city for fostering
entrepreneurship and small business start-ups. The nature and the scope of the City of Toronto
is impressive and offers many challenges and opportunities:
- estimated 80,000 existing businesses located in a vibrant multi-cultural environment
(1.2 million jobs);
- 90% defined as small businesses;
- business contributes to $3.95 billion in tax revenues to the City of Toronto;
- 35% self-employed and growing;
- 307 million sq. ft. of built industrial space;
- 86 professional business associations;
- 6,000 annual new business immigrants (entrepreneur, investor and self-employed);
- tremendous growth of home-based business establishments;
- specialty needs of youth, women, and business immigrants;
- best international city for work and play (Fortune Magazine, 1996);
- among the top 10 world's most popular cities (Entrepreneur Magazine, 1998).
Public and Private Sector Partnership
The fundamental change between the Small Business Self-Help program and the new Small
Business Enterprise Centre model is the establishment of public and private sector
partnerships to deliver small business programs and services. The nature and scope of these
partnerships will be locally based and managed. The leveraging of the public and private
sector partnerships allows the Small Business Enterprise Centre to capitalize on the wealth of
knowledge, expertise, financial resources and formal and informal business networks that are
potentially available to add value to the core small business programs and services.
The potential partnership and sponsorship areas and opportunities include but are not limited
to:
- Government:Federal, Provincial, and Local
- Financial Services:major banks, insurance
- Information Technology/Telecommunications Firms:
- Management Consulting Firms:
- Community Organizations:Chambers of Commerce, Business Associations, etc.
- Educational Institutions:Universities, Colleges, etc.
The Centre will build on existing relationships that have been developed with small
businesses, government agencies, support and training organizations and various other
Toronto communities. A range of potential partnership and sponsorship opportunities will be
explored as a means of broadening the resources which are brought to the client, capitalizing
on revenue-generating opportunities and improving the long term sustainability of the Centre.
Partners and sponsors will be able to contribute a combination of financial, technical and
in-kind resources. Partnerships and sponsorships will be secured with Memorandums of
Understanding (MOU) with targeted public and private sector core partners.
The Toronto Small Business Program
Business Plan
Over the past several weeks, staff of the Economic Development Division have conducted
discussions with the Province (MEDTT) for the establishment of a Toronto Small Business
Enterprise Centre model. These discussions have assisted the Economic Development
Division in formulating an outline for a draft Business Plan.
Human Resources Development Canada (HRDC) has provided the City of Toronto funding to
complete a Strategic Business Plan (March, 1999) for the Toronto Business Program in
consultation with both the public and private sector. This Business Plan will form the basis of
a workplan for the years 1999-2000, and will allow the Economic Development Division the
ability to secure additional public/private sector partners and sponsors.
Enterprise Centre
In addition to maintaining existing services to start-up and small businesses, providing overall
Small Business Program coordination, and developing a stronger network of available
services and resources, the Toronto Small Business Enterprise Centre will be in a position to
enhance existing service areas and develop new programs.
Within the existing network of start-up and small business service providers and programs a
number of service areas have been identified for new initiatives or enhancement of existing
services. Initiatives are needed to address gaps in current services, provide specialized services
reflecting the unique needs of our client-base, and focus on areas which present the greatest
potential for economic growth. Program areas which have been identified include:
- Small Business Mentoring;
- Youth Employment Initiatives;
- Small Business Services Targeted to Women Entrepreneurs;
- Ethnic-Based Business Services; and
- Home-Based Business Policy & Support.
These program/service areas will be further refined as part of the Toronto Small Business
Enterprise Centre's Strategic Business Plan in consultation with both the public and private
sector. The Small Business Program will have the capacity to deal not only with start-ups, but
also with existing small businesses. Consultants will be in a position to acquire specialization
in a variety of business disciplines (i.e. marketing, finance, retailing, etc.). In addition,
Gateway Offices and library Small Business Help Centres will put business information and
consulting services right into the community. The Gateways will also ensure close proximity
with other economic development functions, including sector specialists, creating a seamless
economic development organization.
We anticipate 40,000 client contacts per year including seminar and outreach activity. We also
expect approximately 1,500 documented client consultations. All of the Economic
Development operations will be electronically linked and will share information through a
Contact Management System. This system will assist in communication, issue analysis and
reporting, and facilitate connections to other Economic Development services.
Organizational Framework:
Gateway Offices
The new City's Economic Development structure involves four Gateway Offices located in
the north, south, east and west regions of Toronto. Integral to these gateways will be the Small
Business Program which will be administered through the Enterprise Centre (North Gateway
Office) and three Small Business Gateway Offices. The delivery of Small Business Support
Services in the South, East and West Gateway Offices will be coordinated by the Small
Business Manager, located in the Enterprise Centre.
It will be the responsibility of both the Enterprise Centre and Small Business Gateway Offices
to be involved in outreach activities to establish relationships with various small business
service deliverers who provide complimentary or related services to small businesses.
The Small Business Gateway Offices will provide a range of services, including:
| _Information & Advice on Business Start-up
_Reference Materials
_Sale of MEDTT Business Start-up
Publications
_Business Plan Development Advice;
_Information & Publications |
_Guidance with respect to Licensing, Registration &
Regulations
_Referrals to Financial Assistance and
Import & Export Programs
_Locally-Oriented Seminars & Workshops
_Computer & Internet Access |
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Administrative Structure
Enterprise Centre Advisory Board
An Enterprise Centre Advisory Board will be established to provide policy and strategic
direction to the Enterprise Centre. The Advisory Board will deal with ongoing issues related
to future revenue generation, establishing agreements with additional funding organizations
and partners, responding to new priority issues and opportunities, developing the vision and
mission statement for the Enterprise Centre. Board members will also act as 'champions' to
help promote Enterprise Centre services and activities.
The Board will consist of representatives of the Centre's founding partners. At this time, the
Advisory Board will be established through a memorandum of understanding between all of
the founding partners. The memorandum of understanding will address the general goals and
objectives of the Centre, the role and responsibilities of the Board and members and the
financial commitment of the members. The Board will have the authority to add members as
required.
The City of Toronto will agree to act as the managing partner on behalf of the Advisory
Board. The City, via the Commissioner of Economic Development, Culture and Tourism (or
his delegate), will be the Centre's legal and binding authority for the purpose of accepting and
spending moneys and entering into contracts. This relationship and any relevant conditions
will be set out in the memorandum of understanding. This administrative structure will allow
the Centre to begin operations as soon as possible.
Location
The Toronto Small Business Enterprise Centre will be located on the main floor of the North
York Civic Centre, 5100 Yonge Street. The North York Civic Centre is centrally located with
excellent access via public transportation (North York Centre subway stop). It is also easily
accessed by car via major highways, including the 401 and Don Valley Parkway. The location
is also adjacent to a busy retail mall, commercial offices, hotel and public library.
The Enterprise Centre will occupy approximately 2,500 to 5,000 square feet of dedicated
space and will be furnished with publicly accessible work stations with internet services. Each
computer workstation will have a client interface designed to direct inquiries to the
appropriate Web site or database (i.e. COBSC Web Site, Strategis), provide on-line help, and
answer common questions.
Small Business Gateway Offices will be maintained at the Scarborough Civic Centre and
Toronto City Hall. In addition, a new office will be opened in Toronto's west end.
Conclusions:
The City of Toronto's Economic Development Division is placing a high priority on
developing unique and innovative entrepreneurship and small business programs and services
to its diverse clients. To achieve this goal effective public and private sector partnerships must
be leveraged, especially in a city the size of Toronto, to capitalize on the wealth of knowledge,
expertise, financial resources and formal and informal business networks available to bring
additional value to the City's core business program and services that are unique to this
marketplace.
The establishment of a new Toronto Small Business Enterprise Centre with the support of the
provincial (MEDTT) public/private sector partnership model will undoubtedly provide the
City of Toronto's existing and growing numbers of entrepreneurs and small business clients
with higher levels of services/programs than the previous self-help programs.
The expected results of this partnership agreement with the province (MEDTT) include:
- providing quality small business services and programs to Toronto's entrepreneurs
and small businesses;
- produce a Strategic Business Plan incorporating the input and full support of all
public and private sector partners;
- rationalization of the Small Business Program and clarifying the return on
investments for all parties;
- create a clear strategy to engage the targeted client groups;
- create jobs and assessment for the City of Toronto.
Contact Name:
John Tracogna, Manager, Small Business, Tel.: 395-7407
Bill Steiss, Director, Small Business and Local Partnerships, Tel.: 394-2613
Brenda Librecz, Managing Director, Economic Development, Tel.: 397-4700
Joe Halstead
Commissioner
Economic Development, Culture and Tourism
Enclosures
ECO-98-62
APPENDIX 1
APPENDIX 2
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