CBDC SemiAnnual General Meeting ACOA Update Dave Boland

CBDC Semi-Annual General Meeting ACOA Update Dave Boland – Director, Community Development December 3 rd, 2015 Hotel Gander

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE Presentation Overview • Community Futures Program Performance Report • CBDC Best Practices • Training and Communications Project • Functional Regions Project 2

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE CF Program Performance Report 2015 • The performance measurement strategy uses the following key indicators to evaluate results for CFP-assisted firms: q employment growth, q business survival rate, q growth in sales, and q labour productivity growth • The performance results for CFP-assisted firms are evaluated against a “comparable group” of firms: a set of firms that are similar in size and age and that operate in the same industrial sector and geographical locations using Stats Canada data. 3

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE Results from Data – Employment Growth • Between 2007 and 2012, employment growth in CFP-assisted firms averaged 4. 2% per year over the five-year period, compared to only 0. 1% for the comparable group. 8, 0% Average Annual Employment Growth in Atlantic Canada for Firms with Less than 100 ALUs (20072012) 6, 0% 4, 0% 2, 0% 0, 0% -2, 0% -4, 0% Total Construction Manufacturing CFP-assisted Firms Retail Trade Accommodation and Food Services Comparable Firms Source: Economic Analysis Division, Statistics Canada, 2015. 4

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE Results from Data – Business Survival Rate • The business survival rate for CFP-assisted firms (71%) was significantly higher than the rate for comparable firms (47%) after the crucial fifth year following start-up. 100% Business Survival Rate for the Fifth Year After Start-up for Firms in Atlantic Canada with Less than 100 ALUs 80% 60% 40% 20% 0% Total Construction Manufacturing CFP-assisted Firms Retail Trade Comparable Firms Accommodation and Food Services Source: Economic Analysis Division, Statistics Canada, 2015. 5

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE Results from Data - Growth in Sales • Sales by CFP-assisted firms increased by 6. 3% in average per year between 2007 and 2012. In comparison, sales by comparable firms increased by 1. 6% per year. Total Sales for Firms in Atlantic Canada with Less than 100 ALUs in All Industries ($ millions) $65 000 $1 600 $60 000 $1 400 $55 000 $1 200 $50 000 $1 000 $45 000 $800 $40 000 $600 Comparable Firms (left axis) $35 000 $400 CFP-assisted Firms (right axis) $30 000 $200 2007 2008 2009 2010 2011 2012 6

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE Results from Data – Labour Productivity Growth • Sales per worker increased by 2. 6% per year from 2007 to 2012. Sales per Worker for Firms in Atlantic Canada with Less than 100 ALUs in All Industries ($ / ALU) $250 000 $225 000 • Growth in sales per worker for CFP-assisted firms was 1. 7 percentage points higher than the rate registered by the comparable group (0. 9%). $200 000 $175 000 $150 000 $125 000 $100 000 CFP-assisted Firms $75 000 Comparable Firms $50 000 2007 2008 2009 2010 2011 2012 Source: Economic Analysis Division, Statistics Canada, 2015. 7

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE Results from Data – Conclusion • CFP-assisted firms performed better than the comparable group between 2007 and 2012 in all of the indicators mentioned above. • The overall performance of CFP-assisted firms relative to the comparable group indicates that the CFP is making a positive contribution to Atlantic firms. • Based on the analysis, the CFP seems to play a significant role with smaller firms (i. e. those employing less than 20 workers) and with those operating in the construction industry, manufacturing industry, retail trade sector, and in accommodation and food services relative to other industries in the rural economy. 8

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE CBDC Best Practices • ACOA requested CBDCs submit their best practices on how to engage clients and potential clients in their regions to increase the number of loans • 7/15 CBDCs responded • Results were compiled into themes and shared with NL CBDCs and regional ACOA offices to share with their local CBDCs. 9

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE CBDC Best Practices - continued Some of the best practices include, (1) Board flexibility – provide specific loan application approaches with clients (i. e. aquaculture, fishery, etc. ). (2) Allowing the ED to approve loans up to a specific amount (to be determined by the board). (3) Door to door cold calling to new and existing businesses in the region on a topic of business interest. (4) Allowing board members to approve loans via email. (5) Having board and staff that are engaged in the communities spreading the word of how CBDCs work 10

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE Training and Communications Project • Currently, have an application under review • Over the past couple of years, ACOA has provided funding for governance training for board volunteers • This training will include professional development sessions for CBDC staff • Four sessions will be held over two days (February and March) • Topics include, social media, co-operatives, innovation/productivity and customer service 11

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE Functional Regions Project • Local labour markets are really Functional Economic Regions (FERs) that identify a geographic territory based on how the individuals in that region participate in their local economy. • The NLACBDCs is planning to engage the Harris Centre (Alvin Simms & David Freshwater) to deliver this project to the CBDCs in NL. • This project will assist CBDCs in identifying opportunities in their regions to increase the number of loans in their portfolio 12

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE Connect with us… www. acoa-apeca. gc. ca Twitter: @ACOACanada / @APECACanada https: //www. youtube. com/user/ACOACanada / https: //www. youtube. com/user/APECACanada 13

BUILDING A STRONGER ECONOMY TOGETHER • ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE Thank You! 14