Training For New Entrepreneurs Prepared For The Northern Labour Market Information

Description
This particular brief illustration clarify training for new entrepreneurs prepared for the northern labour market information.

Report #20

Training for New Entrepreneurs

Prepared for the
Northern Labour Market Information Clearinghouse

November 1996

Northern Labour Market Informat i on Cl eari nghouse

Introduction

Each year hundreds of northern Albertans establish new businesses. Most of these people start
out with a good idea and some knowledge in the field, but almost all have something to learn
about the world of operating a business. Not surprisingly, business training is a staple of most
colleges’ course offerings.

This report examines the training opportunities in this field by looking at the training that is seen
to be most needed and the training that is, in fact, most popular. It also examines training offered
by other institutions and that found on the Internet.

Methods

The data for this report comes primarily from a series of interviews with representatives of:
Community Futures Corporations; lending institutions; and training institutions. In addition to
the Clearinghouse partners, the Mount Royal College Small Business Training Centre and the
Kiwanis Enterprise Centre in Dawson Creek, BC were contacted in order to broaden the scope of
the study. Likewise, the Internet was a valuable source of national and international information.

New Entrepreneurs

Those preparing to start new businesses come from a variety of backgrounds. Some have worked
for others and wish to start out on their own; others have recently lost their lobs (or see it as
likely in the future) and choose self-employment over unemployment. Education levels also
vary, though most do have some job-related skills and/or business skills. Would-be entrepreneurs
usually have family or other commitments that make relocating for training difficult at best.

Most new ventures are in the retail and service sectors. According to Alberta Economic
Development and Tourism’s Small Business Fact Sheet (October 16, 1996):

• Over 50% of new businesses in Alberta are home-based, at least in the beginning. 30%
of those eventually move into commercial space.
• Over 50% of new businesses start with an investment of less than $25,000.
• Approximately 140,000 Albertans are self-employed (sole proprietorships).

One potential growth area for new businesses is in the agriculture sector. Many producers are
starting secondary businesses such as Bed and Breakfast lodging, and food processing and
marketing. Interest is growing in the area of value-added agricultural production in northern
Alberta, which may lead to an increase in the number of new food processing ventures. A recent
(October, 1996) survey of farmers and others in agribusiness in northeastern Alberta indicates
both a need for and an interest in, entrepreneurial training.

Training for New Entrepreneurs Opportunity Report 1
• Marketing and finance were the most needed training topics.
• 53% of those surveyed had not taken any training in the operation of a food business.
• All respondents indicated a willingness to pay for locally-delivered training that would
meet their needs. 48% said that they would pay $50 to $75 for a two-day course; 40%
would pay $100 to $125.

Available Training

There are many sources of training for potential entrepreneurs in addition to the many courses
and programs offered by northern Alberta Colleges. Community Futures Corporations (CFCs)
offer one-on-one counselling and some of them provide training to groups as well. Most
Community Futures Corporation provide training for the Employment Insurance funded Self-
Employment Assistance program; which generally includes Bookkeeping, Marketing,
Management and Business Plan Preparation. CFCs often work with colleges and/or local
continuing education societies to provide training to their clients. Private colleges such as
Martech College in Grande Prairie, along with other private training companies, provide a wide
range of business-related courses. Alberta Agriculture has a number of home study programs
available for producers who wish to diversify their operations or who simply want to improve
their business practices.

The Internet is also a valuable resource for anyone considering starting a business. A variety of
web sites offer information, advice and other resources to the entrepreneur. Government sites
provide information on regulations and government services as well as training materials. For
example:

• The Alberta ED&T web page (http://www.edt.gov.ab.ca/) includes a Small Business
Guide Series of six booklets covering the most needed training areas that can be
downloaded directly.
• The Canada/B.C. Business Services Centre home page (http://www.nocdc.bc.ca/) offers
an online small business workshop including instructions and a form to help you prepare
a business plan.
• Western Economic Diversification (http://www.wd.gc.ca/) offers, among other services,
an online self-assessment guide titled, “Do You Have What it Takes to Be an
Entrepreneur?”

University web sites such as Simon Fraser University’s (http://www.bus.sfu.ca/pointers.html)
and Purdue’s (http://www2.mgmt.purdue.edu/html/busedrsrc.html) provide course information
and links to business related sites worldwide. Potential exporters, for example, might benefit
from reading the American State Department’s, Army’s and CIA’s notes on countries around the
world, available through the Purdue site.

Private training companies such as Steppingstones (http://www.steppingstones.ab.ca) can also
be found on the web offering “Sources and Resources for Business Owners and Entrepreneurs”,
and advertising themselves and the services that they offer.
Training for New Entrepreneurs Opportunity Report 2
Training for New Entrepreneurs Opportunity Report 3
Kiwanis Enterprise Centre

The Kiwanis Enterprise Centre in Dawson Creek, BC provides an example of training and
support geared to its relatively remote, northern setting. This centre opened in 1987 in
conjunction with a local high school as a response to high unemployment and a high rate of out
migration among the town’s young people. The centre now operates several training and support
programs for would-be entrepreneurs from grade 7 to adult. The success of these programs has
been recognized by Canadian Business Magazine, among others.

Adults who want to start a business in Dawson Creek can participate in the New Ventures
Program. This program includes a 20-week training program designed to provide participants
with skills in the following areas:

• Market research and development
• Sales and public relations
• Product development and sourcing
• Bookkeeping
• Negotiations
• Goal setting and strategic planning
• Creating direct mail and advertising pieces
• Writing job descriptions
• Completing business plans

Students must have an idea for a business to apply to this program and the course work that they
do is directly related to that business. At the end of the program students open their own
business, often with assistance from the Development Centre which has funding, commercial
space, shared clerical support and counselling available on a limited-term basis to help
businesses get underway. While the program takes more time than many would-be entrepreneurs
would like, it does provide training in the most needed skills and, equally important, the training
is tied directly to the individual student’s business making the training meaningful for the
participant.

Tables

For Table 1 on page 4, representatives of CFCs, the Alberta Development Corporation and the
Canadian Business Development Bank were asked which training topics were most needed by
their clients. For Table 2 on page 5, college representatives were asked to list their institutions’
most popular business and entrepreneurial extension courses. This information in largely
anecdotal rather than statistical. A selection of comments follows each table.

4

Table 1: Main Training Needs of New Entrepreneurs*

Course/Topic
Agency

PCDC

MEDC

LSLCDC

SMEDA

YEBDC

TCFDC

Ft. M
RBDC

LCDC

LLB
RCDC

ADC

BDBC

Total

Marketing

x

x

x

x

x

x

x

7

Business Planning/Research

x

x

x

x

x

x

x

7

Bookkeeping

x

x

x

x

x

5

Management

x

x

x

x

x

5

Computers

x

x

x

x

4

Financial Analysis

x

x

2

Accounting

x

x

2

Finances

x

x

2
*As seen by representatives of Community Futures agencies and other lending/support institutions. See Contacts for full names.

Comments on Training Needs

• Most of those contacted agreed that their clients neither want nor need long, theoretical courses. They want short courses directly
related to their businesses. They do not want accounting theory, they do want to know how to do their own books.
• Clients of the Alberta Development Corporation and the Business Development Bank of Canada were more likely to have some
knowledge of accounting and management issues than are the clients of the Community Futures agencies; who generally have
work-related skills but fewer business skills.
• Almost every new entrepreneur needs training in both the need for, and the techniques of, marketing.
• Business research training should be geared toward the realities of doing business in northern Alberta communities. Theoretical
marketing courses based on southern or urban models will have little relation to business in a small northern town.
• People starting home-based businesses often need training in issues such as separation of home life from the business.
• Computer and Internet training are becoming increasingly important for new entrepreneurs.
Training for New Entrepreneurs Opportunity Report

Table 2: Course Topics Listed Among the Most Popular by Colleges

Course/
Topic

GPRC

AVC-
LSL

FC

LC

KC

MRC

Total

Computers (general)

x

x

x

x

4

Introduction/ How to Start
a New Business

x

x

x

3

Bookkeeping

x

x

2

Accounting

x

x

2

Personal Skills

x

x

2

Sales

x

1

Internet

x

1

Customer Service

x

1

Business Law

x

1

Management

x

1

Marketing

x

1

Comments on Course Demand

• “How to Start a New Business” and similar courses usually cover many of the most
needed training topics. This may explain the lower-than-expected demand for high-need
courses such as marketing or accounting.
• Computer courses, while not aimed specifically at new entrepreneurs, are often
applicable and are consistently popular.
• The Small Business Training Centre at Mount Royal College has seen a decline in
demand for courses on franchising and on business law over the past year; however the
latter remains a popular subject at Fairview College.
• Lakeland College and AVC-Lesser Slave Lake have had mixed success with general
entrepreneurship programs over the last couple of years.
• Demand is growing at Keyano College for “New Manager” skills foundation courses.
• Grande Prairie Regional College’s “Fast Track” Entrepreneurship/Business
ManagementProgram, which combines classroom and on-the-job training, has attracted a
higher percentage of would-be entrepreneurs (as opposed to those taking the course to
improve their employment prospects) than expected (about 50% of current enrollment).

Training for New Entrepreneurs Opportunity Report 5
Tables summary

Most of the “most needed” courses are not overly popular on their own. Bookkeeping is fairly
popular, but other courses such as marketing and management, are more popular as part of
programs than on their own. Business research and Planning appears on the popular courses list
only as part of such programs. Nonetheless, success with such programs has not been universal.

Partnership Possibilities

While some Community Futures Corporations conduct their own training or work with local
continuing education societies, most expressed some interest in partnering with colleges in order
to provide training for their clients. Most CFCs recognise that colleges have particular expertise
in training for technical and computer skills, but that not all standard college courses are well
suited to the needs of the Community Futures clients.

Implications for Training

Given the wide range of sources for “tastes of training” such as Community Futures
Corporations, continuing education societies, the Internet and private training companies; there
is little to be gained from colleges developing and offering such courses on their own. The
success of the Kiwanis Enterprise Centre, however; suggests that training combined with other
forms of support for new businesses would be valuable to new entrepreneurs. The positions and
mandates of the CFCs and their expressed interest in cooperative efforts suggest that they would
appear to be likely partners for colleges in such programs.

Any courses offered should:

• Be based on real, northern examples; using the participants’ own books, if possible.
• Be available in a number of locations so that entrepreneurs do not have to leave home for
extended periods.
• Cover the main training needs such as bookkeeping, marketing, business planning and
research, and management.

Training for New Entrepreneurs Opportunity Report 6
Contacts

Community Futures Corporations:

Dolores Cuthbertson, Lakeland Community Development Corporation, 826-3858
J oan Goldhawk, Peace Country Development Corporation, 338-2125
Shari Huighe, SMEDA Business Development Corporation, 354-8747
Rob Koebel, Tawatinaw Community Futures Development Corporation, 349-2903
Russell Maxwell, Fort McMurray Regional Business Development Centre, 791-0330
Bonnie Morton, Lesser Slave Lake Community Development Corporation, 849-3232
Cal Polturak, Lac La Biche Regional Community Development Corporation, 623-2662
Kelly Semple, Yellowhead East Business Development Corporation, 785-2900
Linda Wallace, Mackenzie Economic Development Corporation, 926-4233

Financing/Support Institutions

Mark Caveny,Alberta Opportunity Corporation, 624-6387
Wanda Clarke, Royal Bank of Canada, 624-1650
Dean Gottselig, Business Development Bank of Canada, 532-8875

Training Institutions

Etienne J ohnson, Grande Prairie Regional College, 324-3737
Bryan Lane, Lakeland College, 853-5437
Dave McLaughlin, Fairview College, 624-4616
J oan Pole, Small Business Training Centre, Mount Royal College, 240-5525
Michelle Pratt, Grande Prairie Regional College, 539-2975
Audrey Shapka, AVC -Lesser Slave Lake, 523-6690
Anne Marie Szucs, Keyano College, 1-800-340-4592
Mac Taylor, Kiwanis Enterprise Centre, (250) 782-5745

Other Sources

Alberta Economic Development and Tourism, “Small Business Facts”, October 16, 1996.

Toma & Bouma Management Consultants/Alberta Management Group, NADC Northeastern
Alberta Value Added Agriculture Feasibility Review, DRAFT October 30, 1996.

Internet Sources

Alberta Agriculture, Food and Rural Development Home Page,http://www.agric .gov.ab.ca
Alberta Economic Development and Tourism Home Page,http://www.edt.gov.ab.ca
Canada/BC Business Service Centre Home Page,http://www.nocdc.bc.ca
Training for New Entrepreneurs Opportunity Report 7
Internet Sources, Continued

Industry Canada Home Page,http://info.ic.gc.ca
Business Education Internet Resources,http://www2.mgmt.purdue.edu/HTML/busedrsrc.html
Business ed. Related Sites at Simon Fraser University,http://www.bus.sfu.ca/pointers.html
Steppingstones,http://www.steppingstones.a.ca
Western Economic Diversification Home Page,http://www.Wd.gc.ca
Training for New Entrepreneurs Opportunity Report 8

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