LEADERSHIP PROGRAM DEVELOPMENT EXPLORATION LEADERSHIP PROGRAM DEVELOPMENT EXPLORATION: OVERVIEW OF ECONOMY, BUSINESS AND SUCCESSION

George Penfold M.Sc., MCIPRegional Innovation Chair

Selkirk College

February 17, 2010

OUTLINEOUTLINE

Demographicsg p

Businesses

Succession ChallengesSuccession Challenges

BR & E Strategies

Roles of the CollegeRoles of the College

DEMOGRAPHICS – WKB POPULATION PR0JECTION

0‐24  24‐64 65+ Year Years Years Years Total

2001 90,102

2008 24,103 49,692 17,115 90,910

2018 22,081 47,547 23,249 92,8772008 ‐2018 ‐2,022 ‐2,145 6,134 1,967

‐Trail and Arrow Lakes LHA’s are projected to lose population

‐Nelson LHA is expected to gain most of the net growth

‐ All other LHA’s are expected to see a small amount of growth

DEMOGRAPHICS – HEAD OF HOUSEHOLDS (2006)DEMOGRAPHICS HEAD OF HOUSEHOLDS (2006)

Under  34 years

35 to 44 years

45 to 54 years

55 to 64 years

65 to 74 years

75 + years  Total y y y y y y

RDCK 3,195 4,155 5,815 4,965 3,475 3,050 24,675

RDKB 1,480 2,140 3,115 2,720 2,110 2,055 13,630

Total 4 675 6 295 8 930 7 685 5 585 5 105 38 305Total 4,675 6,295 8,930 7,685 5,585 5,105 38,305

52% 48%

28%

‐ Retaining workforce will be a significant problem‐ Retaining small business will be a significant problemg g p

EMPLOYMENT (2006)EMPLOYMENT (2006)

GoodsSector

ServicesSector Management Professional

Technical and Trades

Intermediate Lesser Skilled

RDKB 30.9% 69.1% 8.5% 10.8% 30.0% 50.7%

RDCK 29.0% 71.0% 8.9% 12.9% 30.6% 47.3%

BC 20 6% 79 4% 10 5% 14 4% 29 1% 46 0%BC 20.6% 79.4% 10.5% 14.4% 29.1% 46.0%

ImmigrantPopulation 22.1% 77.8%p

EDUCATION 2006EDUCATION 2006Post Secondary 

CertificatePost Secondary 

DegreeCertificate Degree

RDKB 38.7% 14.0%

RDCK 38.8% 16.6%

BC 31.5% 24.1%ImmigrantPopulation 16.3% 39.9%

Immigrants 2008 22.6% 52.4%

In 2008, immigrants arriving with secondary school or less, accounted for 25% of B.C. immigrants (aged 25 and over).

In 2008, 67.2% of new immigrants came from Asia, 13.2% from Europe and the United In 2008, 67.2% of new immigrants came from Asia, 13.2% from Europe and the United Kingdom, 8.5% from Africa and the Middle East, and 6.0% from the United States.

WKB BUSINESSES (2008)WKB BUSINESSES (2008)

3,219 non‐employment businesses (home, part ‐time, commission) and 3 594 businesses with employees3,594 businesses with employees

Of businesses with employees, 91.6% in RDCK, 88.6% in RDKB had under 20 employeesSi 2001 RDCK i d 35 b i ith l RDKB l t 113Since 2001, RDCK gained 35 businesses with employees, RDKB lost 113,  ‐ net loss of 78 (2%).  The province gained 11.2% .WKB gains were in Construction, Real Estate & Rental & Leasing, Finance & Insurance Professional Scientific and Technical ServicesFinance & Insurance, Professional, Scientific and Technical ServicesWKB losses were in Agriculture, Forestry, Fishing & Hunting, Manufacturing, Retail and Wholesale Trade, Accommodation and Food ServicesServices

Self employment businesses (approx. 7,400) were unchanged 2001‐2006.  Self employment represented 16.8% of all employment in 2006.

WKB EMPLOYMENT (2006)( )Total employment was 44,350. 

WKB employment fell by 2.2% (2001‐2006), provincial employment grew by 14.3%.  

Major employment sectors  (2006) were Retail Trade, Manufacturing, Health Care and Social Assistance, Construction, Agriculture, Forestry, , , g , y,Fishing and Hunting.  

Employment declines occurred in Accommodation and Food Services, Manufacturing Public Administration Education and AgricultureManufacturing, Public Administration, Education, and Agriculture, Forestry, Fishing & Hunting.  

Employment gains were in Construction, Retail Trade, Arts, i d i Ad i i i dentertainment and recreation, Administrative and support, waste 

management and remediation services, Professional, scientific and technical services.  

ECONOMIC DEPENDENCYECONOMIC DEPENDENCYWhat are the sectors or activities that generate employment  or other personal income from sales or sources outside of the region?

Public Sector, Government Transfers, Non Employment Income (total) is significant in all areas (52% in the Castlegar LHA to 69% in the Creston LHA)

Forestry is significant in Castlegar Arrow Lakes Kootenay Lake and theForestry is significant in Castlegar, Arrow Lakes, Kootenay Lake and the Boundary regions  (23% to 30%)

Mining and Minerals in significant in the Trail region (20%)

Construction is relatively consistent across the regions (5% ‐ 10%)

Tourism varies from 3%  (Castlegar,  Grand Forks) to 9% (Kootenay Lake)

Nelson region has the most “high tech” dependency (5%)

The illegal economy could represent  as much as 10% or more of the wage economyy

WKB PROJECTED EMPLOYMENTWKB PROJECTED EMPLOYMENT

BC Stats projected job growth between 2008 and 2013 is 4.25% (based on provincial growth assumptions)on provincial growth assumptions). 

In the Goods Producing Industries, growth of 2.5% is expected with gains in Forestry Manufacturing Wood Products and Mineralsgains in Forestry, Manufacturing Wood Products and Minerals.  Employment in Construction is expected to decline. 

In the Services Producing Industries growth of 5% is expected withIn the Services Producing Industries, growth of 5% is expected with gains in Health Care, Retail Trade and Accommodation and Food Services.  The only services sector industry not projected to see some job growth is Governmentjob growth is Government. 

Over the next 10 years, growth in the 65+ “wage” sector will be 35.8%

REGIONAL BUSINESS CHALLENGESREGIONAL BUSINESS CHALLENGES

Common Issues Identified

Human Resource Management 

Inadequate Skill Levels

On‐the‐Job Training

Recruitment and Retention of Workers

L k f Skill d T d S l d M k tiLack of Skilled Trades, Sales and Marketing

Lack of Communication

Transportation and Communication InfrastructureTransportation and Communication Infrastructure

Costs (local and provincial regulations, taxes)

Succession Planningg

SUCCESSION - HOW MANY BUSINESSES (NEDP)?SUCCESSION HOW MANY BUSINESSES (NEDP)?Over 20% (210 businesses) of Nelson businesses responded

Almost 33% will be exiting their business in the next 5 years and 55% of businesses in 10 years (consistent with national surveys)

Most business owners plan to retire after exiting

50% hope to sell or transfer to non‐family, 15% to a family member

80% had not identified a successor

85% had not begun a search for a successor

Fewer than five per cent have a formal written transition or a succession plansuccession plan

SUCCESSION ISSUES (NEDP)SUCCESSION ISSUES (NEDP)

Locating potential qualified buyers (Invest Kootenay)

How to determine the value of the business

No access to expert advice to develop a succession plan

More than half were interested in any assistance and follow‐up workshops, activities or actions

BR & E STRATEGIES

Business Communication: Annual surveys, focus groups to keep informed about issues.  Emphasis  on visitation, with a focus on “winners” and expanding sectors

P bli C i ti I t f l l/ i l h f d d iPublic Communication:  In support of local/regional purchase of goods and services

Business Recognition:  Annual business appreciation and performance awards and publicity

Education/Training:  Management focus for business owners, skills focus for staff   

Productivity:  Evaluation, technical assistance in productivity improvement, marketing

Financial Assistance: Loans venture capital reduce costs (enterprise zonesFinancial  Assistance:  Loans, venture capital, reduce costs (enterprise zones (US)/property taxes), professional/mentor management and support

Program Assistance:  Monitoring programs, linking businesses to program opportunitiesopportunities

Labour Force: Regional marketing and labour force attraction, training and education

Succession:  Succession planning, marketing and everything else above

Note: Use of volunteers , mentoring and partnerships are critical to success

POSSIBLE ROLES FOR THE COLLEGEPOSSIBLE ROLES FOR THE COLLEGE

Educate for entrepreneurship, leadership

Support training, retraining, and alternative delivery options

Participate in regional employment  attraction initiatives

More partnerships in delivery of training/education

Focus on business management as well as employee skills

R l t t b i f tiRelate programs to business functions

Attract more volunteer resources (partnerships)