The Ministry of Aboriginal Affairs

Aboriginal Economic Development Supports

OFNEDA Annual Conference September 9-12, 2013

Supporting Aboriginal Economic Development

The Ministry of Aboriginal Affairs (MAA) coordinates and supports the development of provincial Aboriginal economic initiatives to increase economic opportunities for Aboriginal people in Ontario.

MAA works with other provincial ministries, Aboriginal partners, industry, and the federal government to coordinate Aboriginal economic development initiatives, increase business partnerships and facilitate Aboriginal economic development opportunities.

Aboriginal Business Development Toolkit

The Aboriginal Business Development Toolkit provides Aboriginal communities, Economic Development Officers and ministry field staff with a business development resource for Aboriginal entrepreneurs.

The Toolkit touches on many aspects of starting, owning and operating a successful business while providing useful resources, links to key government programs and supports, and extensive business-related contact information.

The Aboriginal Business Development Toolkit brings together information from a variety of sources into a single, easy to read document that also includes workbook-like templates and planning exercises, which sets it apart from other business development resources that are more prescriptive than practical.

Since its release in June 2011, nearly 6000 hard copies of the Toolkit have been distributed in both English and French formats. Many more copies have been accessed online.

An evaluation project is currently underway that will help inform us of the value of the Toolkit and help us to improve it going forward.

Aboriginal Business Development Toolkit

Chapter One: Is Business Ownership Right For You?What's involved in owning a business, as well as a list of characteristics successful business owners often share.

Chapter Two: Is There a Business Opportunity?Assess whether your business idea may be successful.

Chapter Three: Planning Your BusinessDevelopment of a business plan - ownership structure, location, operations, marketing and financing for your business.

Chapter Four: Getting from a Plan to a BusinessSteps to prepare your business for its opening, from registering your business to preparing to open its doors, management of day-to-day, season-to-season and year-to-year business operations.

Chapter Five: TransitionsBusiness expansion, succession planning and responding to changes in the business environment.

To view or download the Toolkit, please visit www.ontario.ca/aboriginaleconomy.

Ontario Aboriginal Business Directory

• The Ontario Aboriginal Business Directory (www.ontario.ca/aboriginalbusiness) was developed to provide government and the public with the first dedicated directory of Aboriginal-owned businesses in Ontario.

• The Directory is a resource developed in partnership with Aboriginal and private sector partners and was made available to registrations by Aboriginal businesses in August 2010.

• Through the Directory, Aboriginal business owners can expand their network of business contacts, build their existing markets and grow their business.

• For the purposes of the Directory, Aboriginal businesses are defined as a business operating in Ontario that is at least 51% owned and controlled by an Aboriginal person.

• To date, 185 businesses have registered with the Directory.

• The Directory is also:• Improving awareness of Aboriginal businesses based on sector and geography.  • Providing a tool for provincial ministries to identify eligible businesses for the

Aboriginal Procurement Pilot Program.

Aboriginal Procurement Pilot Program

Launched in March 2012, the two-year Aboriginal procurement pilot program allows ministries to use Aboriginal procurement methods for:

– Enhancing the participation of Aboriginal businesses in public procurement, and – Advancing Aboriginal economic and business development during the term of the

pilot.

The pilot program is helping:– Support Aboriginal businesses and communities by increasing opportunities for

Aboriginal companies to do business with the Ontario government.– Build partnerships between Aboriginal and non-Aboriginal businesses.– Aboriginal businesses develop resources, capacity and skills to enhance

economic-development partnership opportunities with the Ontario government and be successful in other business endeavours.

Ministries can consider applying Aboriginal procurement preferences when goods/services:

– Have a significant impact on or benefit for Aboriginal people or communities;– Are culturally specific to Aboriginal people; and/or,– Are primarily designated for Aboriginal people (i.e., procurements that involve a

program or policy for Aboriginal people).

Aboriginal Procurement Pilot Program Cont’d

• Over $9M in contracts was awarded during the first year of the pilot.

• MAA, MTCU, MNR, MNDM and MTO are some of the ministries that have used the pilot provisions.

• Examples of contracts include tree clearing and planting, road construction, Aboriginal language translation services, catering services, consulting services (e.g., for evaluations and for the development of Aboriginal awareness training for OPS staff), and contracts related to the clean-up of the Mid Canada Radar Line in Northern Ontario.

• An evaluation of the pilot will be undertaken later this year to inform recommendations related to a longer-term Aboriginal procurement initiative.

• Approvals for a longer-term initiative will be sought in early 2014.

Aboriginal Procurement Pilot Program Cont’d

Aboriginal procurement methods include:

• Aboriginal Business Set-Aside: A procurement method where a procurement opportunity is ‘set aside’ for competition only among qualified Aboriginal businesses.

• Aboriginal Business Participation: Encouraging a vendor to partner with, or sub-contract, a qualified Aboriginal business to complete a portion of the procurement opportunity. This can be done through voluntary or mandatory criteria, or by allocating a portion of a procurement opportunity to Aboriginal participation.

• Evaluation Criteria: Inclusion of requirements that vendors must demonstrate specific Aboriginal experience and/or outreach to Aboriginal businesses.

Aboriginal Procurement Pilot Program Cont’d

Qualified Aboriginal Business Eligibility

• To be considered a qualified Aboriginal business, a business must be 51% or more owned and controlled by an Aboriginal person(s).

• In the case of a joint venture or consortium, the following additional requirements should be met:

– At least 51% of a joint venture or consortium must be controlled and owned by an Aboriginal business or businesses, as defined above.

– The joint venture must confirm that at least one third of the value of the work performed under the contract will be done by an Aboriginal business. It may be work done by the Aboriginal partner/contractor or by an Aboriginal sub-contractor.

• There is no registration process for the pilot program.– Ministries use a variety of tools to identify eligible businesses, including the

Ontario Aboriginal Business Directory.– Procurement opportunities are posted on MERX (www.merx.com) or sent directly

to vendors through invitational request for proposals/quotes.

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New Relationship Fund

The purpose of the NRF is to assist Aboriginal communities and organizations participation in meaningful consultation and engagement with government and the private sector on lands and resources issues.

There are two components: Core Consultation Capacity Enhanced Capacity Building

Core Consultation Capacity is designed to assist First Nations and Métis communities in building consultation and engagement capacity and expertise related to lands and resources issues. Multi-year funding is available. Up to $80K per year in funding is available

Those who have never received Core funding are eligible for up to $100K in the first year of funding, and up to $80K in each additional year.

New Relationship Fund Cont’d

Enhanced Capacity Building is designed to fund specific projects by First Nations, Métis communities and Aboriginal organizations. These projects allow for building capacity over and above core consultation, capacity for engaging in economic development activities, and for engaging with government (provincial, municipal) and industry.

The 2014-15 application period for Core Consultation Capacity and Enhanced Capacity Building will be announced this fall.  Please watch the Ministry of Aboriginal Affairs website for details.

http://www.ontario.ca/ministry-aboriginal-affairs

Aboriginal Community Capital Grants Program

The ACCGP provides funding for community facilities that provide a central location for community services and business activity.

– The Ontario Native Community Infrastructure Projects (ONCIP) component funds facilities that provide a focus in Aboriginal communities to deliver essential community services and activities; and

– The Native Small Business Centres (NSBC) component of the Program funds facilities that promote the development of local market-based economic activity, support entrepreneurial activities and provide opportunities for business development.

Aboriginal Community Capital Grants Program

Capital Projects:

Up to 90% of total eligible projects costs to a maximum of $500,000. (For remote fly-in communities maximum of up to $750,000 may be considered on a case by case basis)

Applicants must contribute at least 10% of the total project costs – half of this contribution must be in cash

Provincial/federal funding cannot exceed 90% of total eligible costs

Feasibility Study Projects:

Up to 90% of total eligible project costs to a maximum of $50,000.

Applicants must contribute at least 10% of total project costs completely in cash.

Who Can Apply?

First Nations Aboriginal non-profit corporations Métis Nation of Ontario (MNO) Charter Communities

Rural Economic Development Program

• Help rural communities and regions build a foundation for economic growth and investment.• Up to $4.5M available per year for three years.

The RED Program has two project streams:

1. Planning Stream (Capacity-Building):• Economic Development Plans and/or Strategies• Research and/or Analysis to Support Planning and Priority-Setting

2. Implementation Stream:• Business/Sector Development and Diversification• Regional Marketing, Promotional and/or Branding Activities• Human Capital and Skills Development, Attraction and Retention

Application In-Take Periods:

2013: Program start – Oct. 31; Nov. 1 – Dec. 31

2014: Jan. 1 – Feb. 29; Mar. 1 – Apr. 31; May 1 – June 30; July 1 – Aug. 30; Sep. 1 – Oct. 31; Nov. 1 – Dec. 30

2015: Jan. 1 – Feb. 28; Mar. 1 – Apr. 30; May 1 – June 30

http://www.omafra.gov.on.ca/english/rural/red/

Regional Funding ProgramsNorthern Ontario Heritage Fund Corporation (NOHFC)•Crown corporation and development agency of the Ontario government that invests in northern businesses and communities through conditional contributions and loans.•Currently offers seven funding programs, including support for infrastructure and community development, business development and job creation, and emerging technologies.•Undergoing a review of its existing programming and will continue to accept applications under its current programs until September 30, 2013. Revised NOHFC programs are scheduled to be launched by the end of October 2013.

Eastern Ontario Development Fund / Southwestern Ontario Development Fund•Supports regional economic development by creating jobs, attracting private sector investment and promoting innovation, collaboration and cluster development in Eastern Ontario.•Two funding streams, one for established businesses and a regional stream for economic development organizations and Eastern Ontario communities.

– Business Stream: employ at least 10 people, commit to creating at least 10 new jobs, provide 3 years of operations/financial statements, be located in, or plan to locate in, a community in eastern Ontario, invest at least $500,000 in their project

– Regional Stream: focus on economic, business development and job creation in the region, align with provincial and regional priorities, invest more than $100,000, have private sector support and support activities that are new to the organization.

– Small Community Pilot: businesses with 5-10 employees located in small communities; projects require a minimum investment of $200,000 over four years and a 50% increase in current employment.

First Nations Economic Development Readiness Questionnaire

• Developed by the Ministry of Economic Development, Trade and Employment, in partnership with the MAA, AANDC, OFNEDA, COO and a number of First Nation communities.

• Assists communities in assessing their readiness for economic development and in developing strategic plans.

• The Questionnaire helps communities identify their strengths, challenges, and economic opportunities and improves their ability to plan for such opportunities.

• The Questionnaire is available online in English, Cree, Ojibway and Oji-Cree at http://www.chiefs-of-ontario.org/node/425

Measuring Up! – Performance Measurement Guidebook

• Performance Measurement is the process of monitoring, measuring, assessing and reporting on the progress that a plan, such as an economic development plan, is making toward the desired outcomes.

• The Guidebook is designed to support economic development practitioners in improving the effectiveness and efficiency of their economic development plans, the resource provides a seamless, step-by-step systematic approach to understanding, designing, communicating and measuring the performance of economic development activities.

• "Measuring Up!" will help build both the awareness and skills needed to effectively include performance measurement as an important component in the economic planning process.

• To get a copy of the Measuring Up! guidebook, sign up for training or for more information email performance.resources@ontario.ca or call 1-877-424-1300.

Ontario Youth Jobs Strategy

• The 2013 Ontario Budget announced a Youth Jobs Strategy that will provide a $295 million investment over two years in support of the following initiatives:

– Ontario Youth Employment Fund– Ontario Youth Entrepreneurship Fund– Ontario Youth Innovation Fund– Business-Labour Connectivity and Training Fund (Youth Skills Connections)

• Ontario Youth Employment Fund (MTCU)– $195M over two years to provide young people with an entry point to long-term employment

through job placements that offer the chance to learn work skills while earning income.• Ontario Youth Entrepreneurship Fund (MEDTE)

– $45M over two years to encourage the next generation of entrepreneurs through outreach, mentorship and business financing opportunities.

• Ontario Youth Innovation Fund (MEDTE)– $30M total over two years to boost campus-linked industrial research, development and

commercialization by youth• Business-Labour Connectivity and Training Fund / Youth Skills Connections (MEDTE)

– $25M over two years to provide skills training that will enable youth to secure sustainable employment.

Key Contacts

Aboriginal Procurement PilotJohn Costa, Policy Team Lead, Strategic Planning and Economic Policy Tel: (416) 326-4769 Email: John.Costa@Ontario.ca

New Relationship FundClarke Kirkland, Evaluation Co-ordinator, New Relationship Fund BrancTel: (416) 327-9634 Email: Clarke.Kirkland@Ontario.ca

Economic Development SupportsZachary Gutfreund, Senior Policy Advisor, Strategic Planning and Economic Policy Tel: (416) 326-9896 Email: Zachary.Gutfreund@Ontario.ca

Aboriginal Community Capital Grants Program Tim Sim, Coordinator, Corporate Services, Corporate Management BranchTel: (416) 314-7217 Email: Tim.Sim@Ontario.ca

Rural Economic Development ProgramJoseph Dubonnet, Program Analyst, Rural Programs BranchTel: (519) 826-3717 Email: Joseph.Dubonnet@Ontario.ca

Key Contacts Cont’d

Employment Ontariohttp://www.tcu.gov.on.ca/eng/search.aspToll-Free: 1-800-387-5656

Northern Ontario Heritage Fund Corporation (NOHFC)http://www.nohfc.caTel: 705-945-6700 Toll-Free: 1-800-461-8329

Eastern Ontario Development Fundhttp://www.ontario.ca/business-and-economy/eastern-ontario-development-fundTel: 613-542-7266 Toll-Free: 1-866-909-9951

Southwestern Ontario Development Fundhttp://www.ontario.ca/business-and-economy/southwestern-ontario-development-fundTel: 519-873-4486 Toll-Free: 1-866-265-4743

Local Workforce Planning Boardshttp://www.localboards.on.ca

THANK YOU

Questions and Comments?