RENEWING ESTABLISHED BUSINESSES - STUDY FINDINGS & RECOMMENDATIONS FOR MOVING FORWARD - OTTAWA EMPLOYMENT HUB
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O NS
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ReNEWing
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Established Businesses
STUDY FINDINGS & RECOMMENDATIONS
FOR MOVING FORWARD
Submitted by: Ottawa Community Loan Fund and Ottawa Employment HubReNEWing Established Businesses - Ottawa Research on Business Transitions
1. Introduction
PROJECT BACKGROUND & APPROACH
The Research Project & Approach
The Ottawa Community Loan Fund (OCLF) and Ottawa Employment Hub, the Local Employment
Planning Council (LEPC), collaborated on a research project called “ReNEWing Established Businesses”
from November 2016 to December 2017. The study explored the potential of bringing together
immigrants interested in running a business in Canada with small and medium enterprise (SME) owners
who are looking to exit their businesses.
ReNEWing Established Businesses (ReNEW) examined these two common labour market challenges and
explored the potential for a mutually beneficial solution:
1) Immigrant under- and un-employment; and
2) Lack of succession planning among small and medium enterprise (SME) owners.
There are hundreds of motivated, skilled immigrants in Ottawa who cannot find jobs. Meanwhile, many
SME owners are retiring without a succession plan and are therefore closing their shops. The closing of
successful businesses means fewer services for residents, negatively impacting the quality of life in the
community. Moreover, it is a missed employment opportunity for under- and unemployed immigrants.
ReNEW explored the potential for immigrants to solve the problem of SMEs closing, while creating a job
for themselves in the process. The project also looked at financing options to make this possible and
focused on several key areas in examining the issues and moving toward solutions:
1. Understanding the current Ottawa picture in terms of immigrant employment, SME ownership
and succession planning, and financing options.
2. Exploring promising approaches in bringing together buyers interested in running a business
with SME owners who are looking to exit their businesses.
3. Gauging the interest and perceived challenges from both the recent immigrants (potential
buyers) and the SME owners (potential sellers) in Ottawa.
4. Scanning programs and services offered in the community to identify potential gaps and what
could be leveraged moving forward.
5. Formulating recommendations and considerations for moving forward based on the research.
The Project Team
OCLF is an incorporated non-profit organization working for financial empowerment in the Ottawa area.
OCLF arranges loans to start, buy, or expand businesses, and professional development loans to increase
employability. OCLF also provides education in money management and entrepreneurship training.
Ottawa Employment Hub is a provincial Local Employment Planning Council (LEPC) pilot that promotes
place-based approaches to workforce development, while generating and analyzing local labour market
information. The LEPC, funded by the Ontario Ministry of Advanced Education and Skills Development
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 1ReNEWing Established Businesses - Ottawa Research on Business Transitions
(MAESD), has worked with more than 150 community partners in the past year toward modernizing
employment and training programs and services.
Although both organizations contributed to the overall project, OCLF’s main role in this study was to
conduct research on financing options and gather information from the potential Buyer side
(immigrants). LEPC’s main focus was to research labour market statistics and promising approaches, as
well as gather information from the potential Seller side (small business owners) and explore current
community programs and services to leverage.
Project Plan and Key Milestones
To undertake the study, OCLF and LEPC conducted both primary and secondary research, including
surveys, dialogue sessions, and “best practice” interviews. Close to 100 people in the community and
across the country shared their learnings and views. The graphic below captures the key activities and
timelines that guided the research.
KEY ACTIVITIES & TIMELINES
Literature review of supporting research
on need and feasibility
Analyze data
Best practices through research and
interviews Validate data and inform next steps in
dialogue sessions
Review of financing options
July–Sep. 2017 Dec. 2017
Nov. 2016 – June 2017 Oct. 2017
Survey local potential immigrant buyers Produce a report on key findings and
recommendations for moving forward
Survey local potential sellers
Scan local programs and services
Report Content
To summarize key findings and share our recommendations for moving forward, this report includes:
1. Introduction (pages 1 to 2) - Project background/approach and report content.
2. The Current Picture in Ottawa (pages 3 to 5) - Immigrant employment, business ownership/
succession planning, and financing options.
3. Key Learnings from “Best Practice” Research (pages 6 to 7) - Promising approaches and lessons
learned in bringing together buyers interested in running a business with small and medium
enterprise (SME) owners.
4. Input from Ottawa Buyers & Sellers (pages 8 to 11) - Gauging interest and perceived challenges
from recent immigrants (potential buyers) and SME owners (potential sellers) in Ottawa.
5. Programs and Services to Leverage (pages 12 to 14) - Scanning programs and services offered in
the community to identify potential gaps and what could be leveraged moving forward.
6. Recommendations for Moving Forward (page 15) - Formulating recommendations and
considerations for moving forward based on the research.
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 2ReNEWing Established Businesses - Ottawa Research on Business Transitions
2. The Current Picture in Ottawa
This section provides an overview of the current landscape in Ottawa around immigrant employment,
SME ownership and succession planning, and financing options. We have supplemented local data with
provincial and national findings where Ottawa-specific information was not available.
IMMIGRANT EMPLOYMENT
Immigrant population in Ottawa
In 2016, 26% of Ottawa’s population over Ottawa population, aged 15+, by period of
15 years old were immigrants. immigration, 2016
Non-immigrants
This represents 208,695 people, Established immigrants (arrived
more than 10 years ago)
with 48,795 having arrived in past Recent immigrants (arrived 5 to
10 years. 585,210 10 years ago)
Very recent immigrants (arrived
24,190 arrived less than 5 years less than 5 years ago)
ago.
75% of Ottawa immigrants aged 25
to 64 in 2016 had a Postsecondary 159,900 24,190
certificate, diploma or degree 24,605 arrived less than 5 years ago
(compared to 73% for non- Source: 2016 Census, Table 98-400-X2016194.
immigrants).
Immigrant employment and under-employment
121,565 employed immigrants in Ottawa in 2016; however, 2016 unemployment rate by
immigrants still see higher rates of unemployment. number of years in Canada
8.0% unemployment rate for immigrants (compared to
6.6% for non-immigrants).
15.2% unemployment rate for immigrants arriving in
the past 5 years.
(Source: 2016 Census, Table 98-400-X2016286)
Full-time employment status and median income are both lower
than for non-immigrants.
83% of workers aged 25 to 54 are full-time (compared Source: 2016 Census
to 90% for non-immigrants).
$37,007 median income for immigrants (compared to
$43,419 for non-immigrants)
(Source: LFS and 2016 Census, Table 98-400-X2016205)
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 3ReNEWing Established Businesses - Ottawa Research on Business Transitions
OWNERSHIP AND SUCCESSION PLANNING
In this section we focus specifically on small and medium-sized enterprise (SMEs) – businesses with 1 to
499 employees – but emphasize those with 1-10 employees as these are likely most suited for purchase
by new immigrants to Canada with limited finances.
Ottawa businesses and owners
28,446 small businesses in Ottawa in National and Provincial Studies
2016 (1-100 employees); 21,178 with Grocery stores and Restaurants are popular
less than 10 business ownership choices for immigrants in
Over half of SME owners aged 50+ Canada (Source: Statistics Canada, “Immigrant
Businesses in Knowledge-based Industries”, 2017)
30% of SME owners born outside
A 2017 study of business ownership in
Canada
Northern ON found a tendency for immigrant
Top 5 sectors (1-10 employees): entrepreneurs to purchase existing businesses/
1. Computer systems design and franchises (Source: The North’s New Entepreneurs)
related services An Ontario study explored immigrants’
2. Offices of physicians perspectives on buying an existing business
3. Management, scientific and (Source: Wise5: Winning Strategies for Immigrant
technical consulting services Entrepreneurs)
4. Full-service restaurants and limited- Most appealing aspects:
service eating places o The business is already established
5. Residential building construction o Less innovation is required
(Sources: Dec 2016 Canadian business counts; Least appealing aspects:
2014 Survey on Financing and Growth of SMEs) o Motivation of vendor may be unknown
Business transitions
21% of 2017 Ottawa Business Growth National Studies and Data
Survey respondents plan to exit business 75% of SME owners in Canada expect to exit
within 5 years; only 13% have well- their business within 10 years; half of these
documented succession plan looking to sell to a buyer outside their family
(Source: CFIB, “Passing on the Business to the Next
Over half of respondents plan to Generation”, 2012)
eventually sell (24% externally) versus
just 7% planning to wind the company Two-thirds of small business owners in Canada
down. plan to eventually sell externally or to a family
member (48% externally) vs. 5% planning to
Top 3 businesses for sale close the business (Source: 2012 CFIB Report on
(ads on Kijiji and BizZen): Business Transitions)
1. Accommodation and food services Accommodation and food services and Retail
2. Other services trade are the business types most likely to be
3. Retail trade bought or acquired (vs. started from scratch) in
Many ads are for businesses in the Canada; 48% and 37% respectively (Source:
Statistics Canada, “Survey on Financing and Growth
$50,000 to $150,000 range. of SMEs”, 2014)
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 4ReNEWing Established Businesses - Ottawa Research on Business Transitions
FINANCING OPTIONS
The literature review identified financing as a barrier from both seller and buyer perspectives.
A 2012 CFIB survey on small business succession planning found that 48% of Canadian small
business owners say “financing for the successor” is a barrier to succession planning.
An Ontario study found that financing was consistently identified as the biggest obstacle to
setting up a business for immigrant entrepreneurs, being identified close to three times more
often than any other obstacles. (Source: Wise5: Winning Strategies for Immigrant Entrepreneurs)
Dr. Sarah Wayland (Project Lead at Global Hamilton Connect and author of the Wise5 immigrant
entrepreneur study) is a strong advocate for business succession immigration programs and
notes financing options for prospective buyers as a key success factor.
Our research looked at types of viable lenders and types of viable products, examining how different
types of lenders undertake these transactions, as well as the kinds of financing available to immigrants
looking to buy a business in Ottawa. The data available from commercial lenders referred largely only to
SMEs valuated above $100,000. Alternative financing programs with wrap-around support services, such
as those offered by specialty banks and Not-for-Profit organizations (for example, BDC, OCLF, and
Futurpreneur Canada) presented information pertaining to businesses of various sizes. Support services
can include coaching with cash-flow projections and business planning or mentoring, as well as
qualifying criteria to serve those normally underserved by the mainstream, such as youth or immigrants.
Our research identified three financing options for buying a business.
Asset backed financing from Use of intangible assets, Vendor take-back
financial institutions unsecured financing • The seller lends funds to the buyer to
help facilitate the purchase
• Amount will vary • Good-will (for example, • Buyer pays a portion each month to
depending on net worth of clients) the vendor over time
accumulated assets • Or unsecured • Functions similar to a down payment
but paid over time
• In the absence of tangible assets,
buyer down payment needs to be
significant
A closer look at unsecured financing
The above options are available to any buyer (immigrant or non-immigrant) and do not address all the
barriers immigrants face when seeking financing to buy a business (e.g., lack of required immigration
status, Canadian credit history, access to sufficient funds). Very few affordable and accessible alternative
options currently exist for immigrants to address these specific needs, and those that do are mainly of
the Unsecured financing type:
Ottawa Community Loan Fund (OCLF) Financing – Working with Futurpreneur (for youth 18-39)
and Alterna Savings (OCLF guaranteed loan)
BDC Pilot Program for Immigrants – For recent arrivals (2 years or less), the program addresses
lack of credit history by recognizing mentorship (program participation or vendor staying on) in
lieu of Beacon score.
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 5ReNEWing Established Businesses - Ottawa Research on Business Transitions
3. Key Learnings from “Best Practice”
Research
Researchers connected with 22 individuals to share knowledge and discuss promising approaches. This
section highlights the promising approaches and lessons learned in bringing together buyers interested
in running a business with small and medium enterprise (SME) owners.
CONNECTOR PROGRAMS
Setting the context
The five buyer-seller “connector” programs identified were concentrated in the Maritimes where the
population is declining and rural communities are looking to retain or grow their workforce. The
importance of assessing programs within their local context was emphasized as different regions have
different needs and reasons for implementing programs. Some felt that it is likely easier to pilot a
matching/connecting program in communities smaller than Ottawa because they can contain the scope.
Setting the context
The Hive Edmundston 3-stage program – consisting of business ownership training, mentorship,
New Brunswick and an accelerator – aimed at helping immigrants run their own business.
Networking opportunities provided for participants and the broader
business community.
Nova Scotia Youth Active from 2013 to 2015. Trained youth interested in buying a business
Succession Program and connected them with owners of small businesses looking to sell their
Nova Scotia business. Coaching provided to both buyers and sellers by current/past
business owners.
Venture Connect Connects potential buyers and sellers via an online matching system and
British Columbia offers fee-based advisory services from business coaches to prepare buyer
and seller for sale process. Open to everyone.
Succession Connect Connects potential immigrant business buyers with business owners
Nova Scotia looking to sell, via anonymous online database. Prospective matches given
the opportunity to share information and meet in-person. Additional
supports provide information on the succession process.
PEI Connectors Provide advisory services and educational programming for immigrant
PEI business owners and prospective immigrant business owners in PEI, as well
as events and meetings to facilitate networking and connections with PEI’s
business community.
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 6ReNEWing Established Businesses - Ottawa Research on Business Transitions
Key success factors
Common elements of successful programs
Workshops/training for buyer & seller
Mentorship/coaching for buyer & seller
Facilitating initial introduction between buyer and seller
Networking opportunities
Referrals to professionals for advisory services during the transaction process
Key success factors and lessons learned
Coaching/mentoring
o Coaches provide diverse expertise (i.e., accountant coach and marketing coach each
provide expertise in their areas)
o Mentors who own businesses also valuable
Matching vs. connecting
o Focus on facilitating connections, not matching (matching often more difficult than
expected, takes a lot of time, may be more manageable in smaller communities)
o Take legal precautions to avoid being held liable in event of a connection that doesn’t
work out between buyer and seller
o Set up gradually and make sure training content is ready before doing matching
Collaborative management
o Highly encouraged so that buyer learns on-the-job from seller
o Don’t mandate a set time period; each sale is unique - may not always be possible
Other findings
o Do not under-estimate time required to set up the project and build a strong advisory
group and relationships with business intermediaries
o Business owners often reluctant to make intentions to sell public (impact on staff/clients)
o Franchises can be a good opportunity/lower risk for immigrants
o It can work well to mix immigrant and non-immigrant participants
FINANCIAL OPTIONS
Findings around financing options did not always apply to the Ottawa scenario:
Many benchmarked programs were targeted at Provincial Nominee Program immigrants, mainly
in the investor stream, who are likely to have sufficient funds. Ottawa has a relatively low share
of these immigrants.
Community Business Development Corporation (CBDC) and Community Futures offices were
both cited as key partners; neither of which is accessible in Ottawa as an Ontario urban centre.
Only the Nova Scotia Youth Succession Program cited Futurpreneur as a financial option; this
program is also currently used in Ottawa for immigrant entrepreneurs under forty.
Knowledge-sharing interviews with financial stakeholders pointed to some areas to pursue:
Explore organizations such as Social Capital Partners as potential sources of social financing.
Find creative ways to make the lenders more likely to work with smaller businesses.
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 7ReNEWing Established Businesses - Ottawa Research on Business Transitions
4. Input from Ottawa Buyers and Sellers
As part of exploring a potential local solution, the researchers gauged the interest and perceived
challenges from both recent immigrants (potential buyers) and SME owners (potential sellers) in Ottawa
through two surveys and two dialogues sessions in the fall of 2017.
RECENT IMMIGRANTS (POTENTIAL BUYERS)
Consultation approach
Survey (42 respondents) Dialogue Session (9 participants)
Service providers who worked with immigrant Immigrants were invited to validate findings and
clients were asked to share a survey to collect share views on four key areas:
information to help determine and qualify 1. Types of Business and Interest in Buying
interest among immigrants interested in buying 2. Financing Options
a business and capture their views on challenges 3. Identifying Businesses for Sale
and solutions. 4. Challenges and Supports
Immigrant interest in buying
The majority of survey respondents (54%) had been in Canada less than two years, with another 15%
having been in Canada three to five years. About two-thirds of respondents had no previous business
ownership experience. Just over half of respondents indicated interest in buying a business in Canada.
Survey findings
Top 3 Choices (17 respondents) 47% of survey respondents indicated that
1. Restaurants (9) they were NOT interested in buying
2. Education-related (3) Most common reasons:
3. Clothing, sewing and fashion design (3) 1. Only interested in starting my own
business (8)
Half were interested in buying a business 2. Limited knowledge of running a business
under $50,000, while most others were in Canada (7)
willing to explore the range up to $150,000 or 3. Limited knowledge of buying a business
$300,000 in Canada (6)
4. Lack of financing (6)
Most respondents wanted a business with 5. Not knowing where to look for
1-4 employees opportunities (4)
6. No suitable opportunities available (3)
Dialogue session
We explored these findings further in the Dialogue Session and found:
Buying was seen as more risky than starting from scratch; would need due diligence or to know
business really well, as there is concern around why the business is being sold
Hiring an immigrant early with intention to succeed organization to them was identified as a
potential solution to mitigate this concern.
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 8ReNEWing Established Businesses - Ottawa Research on Business Transitions
Financing and finding businesses
What steps have you
Survey findings (18 respondents)
How they would expect to finance the purchase Stepstaken
takentotofind
findout
outwhat
what
businesses are available?
businesses are available:
Looked at listings
8
online
Word of mouth 8
None to date 5
Met with broker(s) 2
Other 1
Other: Researched industry opportunities
Challenges and supports
Survey findings (17 respondents) Dialogue session (9 participants)
Challenges for you in buying a business Additional challenges identified:
Lack of financing 6 7 4 Suspicion around the reason for selling (need for
due diligence)
Limited knowledge of
running a business in… 4 9 4 Hard to understand true value of business
Limited knowledge of Limited knowledge of Canadian customers/local
4 8 2
buying a business in… consumer demand
No suitable opportunities
2 8 6
Limited knowledge of legal procedures and
available
taxation rules
Not knowing where to
look for opportunities 3 5 8
Poses a significant challenge
Poses somewhat of a challenge
Does not pose a challenge
Survey findings (17 respondents) Dialogue session (9 participants)
Supports that would be most valuable Additional supports identified:
Ease of accessing information on programs and
resources; need for a “one stop shop” or one
publication/newsletter
Availability of one-on-one consultation on an ad
hoc basis early in process
Peer mentorship network with other interested
buyers
Government support with due diligence; advice
on risk of buying business
Website with vetted businesses for sale (similar
to car reports)
On-the-job coaching (e.g., restaurant training in
Quebec); in-depth industry-specific training
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 9ReNEWing Established Businesses - Ottawa Research on Business Transitions
CURRENT BUSINESS OWNERS (POTENTIAL SELLERS)
Consultation approach
Survey (21 respondents) Dialogue Session (9 participants)
Organizations working with entrepreneurs and Business owners were invited to validate
business owners were asked to share a survey to findings and share views on two key areas:
help determine and qualify interest among 1. Business transitions and interest in
established business owners in exploring the sale selling
of their business and to capture their views on 2. Challenges and supports for sellers
challenges and solutions. and buyers
Business transitions and interest in selling
Survey findings (21 respondents)
Are you considering exiting (i.e., transitioning from owning) How do you plan to eventually
any of these businesses in the next 5 years? exit or transition from owning this
business:
What steps have you taken to prepare this business to sell? Why undecided or not considering
selling?
Not clear on the selling
process/where to start
Too much effort; not worth it
Too far in the future
Uncertainty re. family
handover
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 10ReNEWing Established Businesses - Ottawa Research on Business Transitions
Challenges and supports
What challenges exist for you in
Survey findings (9 respondents)
preparing to sell this business? Dialogue session (9 participants)
Challenges in preparing to sell business Additional challenges identified:
Not knowing where to look
2 1 2 Knowing the buyer (are they serious; able to
for buyers
contribute to the legacy of the business; willing
Lack of time 2 1 2 to support employees)
Lack of information on
1 1 3
Financing for buyer
selling process
Confidentiality
Lack of resources/money
to engage professionals… 1 1 3 Price of valuation services
Timing (feel you don't need
to start planning yet)
1 3
None 1 1
In the very near future/Currently looking to exit
In the next 2 years
In the next 2 to 5 years
How valuable
Survey findings would each of these
(18 respondents) Dialogue session (9 participants)
supports be to
Supports that would be you in transitioning
most valuable in Additional supports identified :
to exit your business?
transitioning to exit business Incentive to buy vs. start
Mentorship/advice from o Compare benefits and risks of each
people who have sold a 11 6 1
business option and make these known
Information on financing to Bankers look very favourably at vendor take-
transfer a business, 12 4 2
bookkeeping, valuation, etc. backs
o Shows mutual trust and continuity
Connections to local potential
buyers
11 5 2 o 3 to 5 years; 3 years the norm
Workshops and educational Hard to find bank to finance goodwill
resources, for example on the 10 5 3
selling process and regulations
Very valuable Somewhat valuable Not valuable
Dialogue Session discussion and voting on potential supports
Buyer Supports (more than one vote) Seller Supports (more than one vote)
Mentorship/advice from people who have bought One website to connect buyers and
a business (6 votes) sellers (5 votes)
Financing for newcomers (4 votes) Industry-specific trade shows where
Government support with due diligence; advice on buyers and sellers get to know each
risk (3 votes) other (5 votes)
On-the-job training (2 votes) Qualified, certified mentors for
Connections to local businesses for sale (2 votes) buyers and sellers (5 votes)
Website with vetted businesses for sale (similar to Panel of advisors for buyers and sellers
car reports) (2 votes) – several specialty areas, unbiased
On-the-job coaching; in-depth industry training advice (3 votes)
(2 votes) Government department to help
Involve settlement agencies and trusted advisors in people buy and sell with a checklist
educating new immigrants with information on (housing model)
resources available (2 votes) (2 votes)
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 11ReNEWing Established Businesses - Ottawa Research on Business Transitions
5. Programs and Services to Leverage
This section provides an overview of the scan conducted of programs and services offered in the
community to identify potential gaps and what could be leveraged moving forward.
ORGANIZATIONS TO ENGAGE
World Skills
Provides a full range of programs and services to assist newcomers looking for work. Residents of
Ontario only. Minimum Canadian Language Benchmark Level 5.
Programs that could be leveraged:
1) Entrepreneurship Connections – Program that helps newcomers who plan to start a business in
Canada. Assists with setting up a successful small business in the Canadian market. World Skills
Employment Centre delivers Entrepreneurship Connections in partnership with ACCES
employment and with the support of the Business Development Bank of Canada.
2) Enhanced Language Training Program – Entrepreneurs (Start your own business) – For those
interested in starting a business, this course helps participants with different aspects of
operating a business. Open to Permanent Residents, Convention Refugees or Live-in Caregivers
residing in Ontario with Canadian Language Benchmarks levels 6-9.
3) Volunteer Coaches – Local experts/professionals volunteering to guide immigrants towards
employment.
4) Employer Champions – Engages local employers and other stakeholders to be advocates for
newcomers and to use coaching as a strategy to advance newcomers’ integration into the
Ottawa labour market.
Ottawa Community Immigrant Services Organization
Settlement and integration services to help newcomers feel at home in Ottawa, including community
integration, counselling for newcomers, and programs to help youth integrate into local schools.
Program that could be leveraged:
Ottawa Connector Program – A formalized networking initiative that helps broaden Internationally
Educated Professionals’ networks through one-on-one meetings with established business leaders who
work in the same field.
Hire Immigrants Ottawa
Increases the capacity of employers in the Ottawa region to effectively integrate skilled immigrants into
the local workforce; also lists resources for Immigrants.
Program that could be leveraged:
Employer Council of Champions – A cross-sector council featuring senior executives from top Ottawa
public and private sector employers, influential business associations, and labour groups. Gives
employers a collective voice, enabling them to champion successful integration of skilled immigrants
into the workforce.
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 12ReNEWing Established Businesses - Ottawa Research on Business Transitions
In-TAC (run by the Ottawa Chinese Community Service Centre)
Matches international talent with local businesses for global success; helps small and medium-size
businesses fill their expertise gaps and helps internationally educated professionals (IEPs) find jobs in
their field of expertise more quickly
Program that could be leveraged:
MAPLE 2.0 – Mentorship in Action – National program that brings together employers with IEPs through
mentorship placements. Creates employment opportunities for new immigrants and helps employers
enhance their intercultural understanding.
City of Ottawa
Program that could be leveraged:
Immigrant Entrepreneur Awards – Each year, the City of Ottawa acknowledges the business success of
select individuals who were born outside of Canada and who now make Ottawa their home, for their
considerable contribution to the Ottawa economy.
Ottawa Community Loan Fund
A non-profit organization that arranges microloans for business and professional development
purposes. In addition, OCLF provides educational services around financial literacy and
entrepreneurship.
Program that could be leveraged:
Workshops/Training
Credit for Entrepreneurs covers how to build good credit and credit do’s and don’ts.
Personal Budgeting teaches how to create a personal budget and how to manage income and
expenses.
Saving workshops provide tips on saving and how to manage needs and wants.
Preparing for Financing covers how to improve your chances of getting business financing.
BizTOC offers long-term training, limited coaching, and community connections in a 30-hour
training program plus 6 follow-up sessions; delivered at community partner locations.
La Cité des Affaires
Corporate training centre at Collège La Cité.
Program that could be leveraged:
Réfugié aujourd'hui entrepreneur demain (RAED) – Program created for refugees considering operating
their own business. Multiple workshops covering topics around how to become an entrepreneur.
Catholic Centre for Immigrants
Services to help newcomers get settled in Ottawa, including programs to help develop a social network,
access language training and attain proper accreditation for past training and experience.
Immigrant Women Services of Ottawa
Counselling and support services to women and their families in over 60 languages and dialects.
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Jewish Family Services
Services for newcomers from various cultural, ethnic and linguistic backgrounds.
Lebanese and Arab Social Services Agency
Settlement and integration services for Lebanese and Arab immigrants, including help in job searching as
well as interpretation and document translation.
Somali Centre for Family Services
Settlement and integration services to Somali refugees and immigrants, including counselling, help in
job searching, and translation/interpretation services.
Other groups to engage
Ottawa Local Immigration Partnership (OLIP)
Ottawa Chamber of Commerce
Orleans Chamber of Commerce
West Ottawa Board of Trade
Palestinian Canadian Chamber of Commerce
Indo-Canada Ottawa Business Chamber
Canada-Africa Chamber of Business
Chambre de Commerce Haitienne d’Ottawa-Gatineau
Embassy associations
BIAs
Red MELOG
Canadian Association of Family Enterprise
Invest Ottawa
Youth Entrepreneurship Networking Group of Ottawa (YENGO)
City of Ottawa Economic Development
BUYER-SELLER MATCHING PLATFORMS TO LEVERAGE
SuccessionMatching
Online marketplace connecting business buyers & sellers, who both pay a fee to use the website unless
they have a coupon. Algorithm helps determine matches and where external services might be required
for the user. Refer to vetted professionals (e.g. lawyers, accountants, etc.) as needed.
Bizzen
Online marketplace of Canadian businesses for sale. It aims to connect business owners looking to sell
with the right buyers. Through the Biz Zen website, business owners can list their businesses for sale and
connect with potential buyers. And those looking to buy a business can search for opportunities and
connect with owners. Free to list; buyers and sellers pay for actual leads.
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 14ReNEWing Established Businesses - Ottawa Research on Business Transitions
6. Recommendations for Moving Forward
This section presents key considerations for moving forward based on the findings from the research
undertaken and outlines recommended next steps for moving forward on a potential solution in Ottawa.
CONSIDERATIONS FOR MOVING FORWARD
1. Incorporate information on buying a business into all entrepreneurship education (not only for
immigrants).
2. Make information on entrepreneurship, including buying a business, available through
settlement organizations and immigrant employment service providers (who serve as common
entry points and trusted advisors for immigrants).
3. Foster and facilitate connecting potential buyers and sellers (versus attempting to match them)
to allow them to build trust and make informed decisions; for example, industry-specific trade
shows, websites, embassy and chamber marketplaces and events.
4. Provide both buyers and sellers with qualified coaches who can provide advice in their areas of
expertise; for example, HR, accounting, marketing, etc.
5. Consider providing mentors from a pool of current business owners or those who have bought a
business in Canada.
6. Further explore how to address financing barriers: 1) lack of access to capital due to immigration
status (lack of permanent residency or citizenship); 2) low limits on unsecured financing; 3) no
Canadian credit history (one piloted approach by BDC was to accept mentorship in lieu of credit
history).
7. Expand financing wrap-around services, such as business plan and cash-flow, to address lack of
experience in preparing required supporting documentation to obtain financing in Canada.
8. Increase understanding of the vendor take-back process for buyers and sellers as the most
promising approach to purchase a business (gives experience to the buyer, increases trust to all
parties involved, and mitigates risk to both parties).
RECOMMENDED NEXT STEPS
Share this report with stakeholders in the community, such as Ottawa Local Immigration
Partnership (OLIP), Youth Entrepreneurship Networking Group of Ottawa (YENGO), and other
relevant groups to validate findings and identify priority action areas.
Consult with the 5 Big Banks (RBC, CIBC, Scotia, BMO, TD) to validate findings on financing
options available, and start a dialogue on how to address financing barriers.
Explore funding and partnership opportunities to move forward on key actions identified;
consider pursuing a Grow Grant to advance on one or more of the action areas.
Use findings to inform other community workforce development activities, such as in
preparing the LEPC Community Labour Market Plan in February 2018.
Share findings with the general public via OCLF and LEPC websites, as well as with provincial
bodies such as the Ontario Centre for Workforce Innovation.
ReNEWing Established Businesses – Study Findings & Recommendations for Moving Forward 15You can also read
