Getting a leg up as an entrepreneur
Funding, education, mentorships can help you grow your business
Business owners don’t have to go it alone. A suite of education, mentorship and funding resources can help entrepreneurs get their startup off the ground and pointed in the direction of success. Here’s a sampling of what’s available in Ontario.
Ontario Centres of Excellence (OCE) SmartStart Seed Fund oce-ontario.org What: Grant, mentorship/education Who: Young entrepreneurs between 18 and 29 years old, and non-youth entrepreneurs aged 30 and over. All startups must be incorporated, Ontario-based and less than three years old. The applicant must have a key position in the startup, must hold equity and must be a Canadian citizen or a permanent resident. Details: There are three investment types available through SmartStart (co- funded by the governments of Canada and Ontario). Youth entrepreneurs can apply for financing of up to $60,000 and non-youth entrepreneurs can apply for up to $30,000. The money must go to startup costs and is non-repayable.
Each type comes with its own criteria and rules, but they all require that a startup be endorsed and that the cash investment will be matched by a third, nongovernment source.
SmartStart also offers up to $7,500 in skills training and advisory services and mandatory participation in its Founders Forum, a meeting for the leaders of SmartStart recipient companies.
Futurpreneur Canada (formerly CYBF) futurpreneur.ca What: Loan, mentorship/education Who: Aspiring business owners between 18 and 39 years old who are Canadian citizens or permanent residents. There are many other criteria, including that the business has been operating for less than a year, that the applicant agrees to work with a mentor for up to two years and that the applicant can produce a viable business plan by the end of the application process. Details: For entrepreneurs between the ages of 18 and 34, Futurpreneur can offer up to $15,000 per business (plus applicable fees). The term is five years, and interest is charged at CIBC’s prime rate plus 3 per cent. For larger amounts, or for entrepreneurs between 35 and 39, Futurpreneur works with BDC to offer financing. Along with financing, Futurpreneur offers dedicated mentorship for up to two years from an expert adviser, as well as educational resources and networking opportunities. Business Development Bank of Canada (BDC) bdc.ca What: Loan, coaching Who: To apply for the BDC Small Business Loan, the business must have been in operation for at least 24 months. The applicant must be a Canadian citizen or permanent resident and at least the age of majority in their residing province or territory. Details: BDC offers a business coaching program, providing management consulting services for en- trepreneurs. The program helps entrepreneurs assess and address underperforming areas of their business. The BDC Small Business Loan can provide up to $50,000, with no fees and no personal assets taken as collateral. The current interest rate is 5.7 per cent (as of press time) and the loan can be repaid over four years. The application process is completely online, eliminating any bank visits and meetings. MaRS Discovery District marsdd.com What: Investment, education Who: The Entrepreneurship 101 program is aimed at technology entrepreneurs and social innovators who are looking to start a new venture. The Investment Accelerator Fund (IAF) has several eligibility requirements, including that the company have total revenues of less than $500,000 from the time of its incorporation and that it have a total addressable market of at least $100 million. Details: MaRS is a regional innovation centre, tasked with helping entrepreneurs launch innovative companies that impact lives and businesses. Its free Entrepreneurship 101 program is offered both in-person and online and takes place over the course of about seven months, offering education in business fundamentals including market testing, business models, finances, building a team and more. The IAF invests up to $500,000 in early-stage, high-potential, technology-based companies. The highly competitive, highly sought-after fund also provides connections to funding and resources to help further advance recipient startups. A youth version invests up to $250,000 in innovative technologybased companies with founders who are under 30. Incubators/accelerators Ontario is home to several startup incubators and accelerators, dedicated to helping early- to mid-stage companies flourish.
Incubators often offer no funding and take no equity, but provide working space, educational opportunities and resources. Accelerators typically offer some funding in exchange for some equity, and provide a more structured development program. Whether a startup company seeks membership at either an incubator or an accelerator depends on their stage, progress and business goals. Ontario’s incubators and accelerators include INcubes, the DMZ at Ryerson University, the Next 36, Communitech Rev and HIGHLINE.