The province funds two entrepreneurship initiatives

Gerry Byrne, Minister of State for the Atlantic Canada Opportunities Agency (ACOA) and Kelvin Parsons, Minister of Industry, Trade and Rural Development (Acting), today announced $60,000 in funding for the St. John�s Y-Enterprise Centre to help support small businesses in the first five years of operation. Minister Byrne announced a further $7,125 for the Humber Community YMCA to support the development of a business and operational plan to determine the feasibility of establishing a Y-Enterprise Centre in Corner Brook.

The funding to the St. John�s Y-Enterprise Centre will focus on Aftercare Services, which will be offered through three distinct programs.

1. The Professional Business Workshop series will target new and existing entrepreneurs, offering a wide variety of business topics through a schedule that fits the busy life of an entrepreneur.
   
2. The Advisory Board Program will match entrepreneurs with a board of corporate and community volunteers, all of whom will work with the entrepreneur to strategically grow the entrepreneur�s business. The Advisory Board Program will allow the entrepreneur access to a pool of talent that may not have been traditionally available. Each Advisory Board consists of a team of six volunteers.
   
3. The Client Intervention Services will enable entrepreneurs to meet regularly with a business consultant to directly assess their operation, receive advice and learn about the advantages of the Aftercare Services program.

"These three programs are a critical part of our continuing efforts to build an effective business environment and provide support to both existing and potential entrepreneurs," said Minister Byrne. "Organizations like the Y-Enterprise Centre should be commended for looking beyond business start-ups by delivering services concentrated on the business maintenance and expansion phases of enterprise ownership."

"More than 95 per cent of all businesses in this province are small businesses, and national statistics reveal that small businesses create more jobs every year than any other part of the economy," said Minister Parsons. "Government recognizes this in its Renewal Strategy for Jobs and Growth and by giving greater priority and emphasis to small business development through initiatives like the one announced today."

The Y-Enterprise Centre has been in operation since 1987, serving aspiring entrepreneurs through one-on-one business plan counseling. The Centre delivers the Canadian Youth Business Foundation Loans Program, the Youth Ventures Program and the Enterprise Olympics Project. The move into "aftercare services" is a natural progression for the organization.

Mr. Gary Ryan, Director of the Y-Enterprise Centre said, "It is a well known fact that it costs six times more to attract a new customer than it does to retain an existing one. This program focuses on business retention, which in itself will result in a greater economic gain for Newfoundland and Labrador. Our goal is to work with entrepreneurs so they can better their chances of survival in the business world. The Aftercare Services will complement the existing offerings of the Centre.

Commenting on the plans to establish a Y-Enterprise Centre in Corner Brook, Minister Byrne said: "There is a strong business community on the West Coast of the province, with many opportunities to develop new business ideas. ACOA is pleased to support the development of the Humber Community YMCA�s plan for an Enterprise Centre in Corner Brook."

The Humber Community YMCA opened in Corner Brook in 1981 and has been providing programs that focus on youth and the barriers they face in today�s changing labour market. On the recommendation of the Humber YMCA�s Strategic Planning Committee and with assistance from ACOA, a needs assessment study was conducted in 2000 to determine if a demand existed for a Y- Enterprise Centre. This study indicated a high level of support from community stakeholders, and the decision was made to proceed to the business plan stage. An important component of the plan will be identifying gaps in programs and services offered to potential entrepreneurs in this region and identifying how a Y-Enterprise Centre can enhance existing programs.

Christine Young, CEO of the Humber Community YMCA said, "the support from ACOA to move this initiative forward is an important step in providing young people in our region with a sense of hope and possibility, as they consider entrepreneurship as a viable option for their future."

Funding for the St. John�s Y-Enterprise Centre Aftercare Program is being provided through the Canada-Newfoundland and Labrador Comprehensive Economic Development Agreement (CEDA), a six-year, $94.99 million initiative designed to strengthen and diversify the provincial economy and complement existing federal and provincial programs and agreements; it is administered federally by the Atlantic Canada Opportunities Agency and provincially by the Department of Industry, Trade and Rural Development.

Funding to support the Humber Community YMCA�s plan is being provided through ACOA�s Business Development Program.

Media contact:
       Josephine Cheeseman, Industry, Trade and Rural Development, (709) 729-4570
       Peter Graham, Press Secretary, Office of the Minister of State for ACOA, (613) 957-9959
       Doug Burgess, ACOA, (709) 772-2935
       Gary Ryan, St. John�s YM-YWCA Enterprise Centre, (709) 739-9933
       Christine Young, Humber Community YMCA, (709) 639-9676

2002 04 19                         3:05 p.m.