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Future Directions
Recommendation for action
The core recommendation of this report is that a formal strategy should be prepared for the EDP and UEDI that defines the key elements and approach for the programs going forward. It is an appropriate time to take a step back to clearly define the mission and goals for the programs and then develop a program structure that is consistent with those goals. We recommend that the strategy should build on the results of the evaluation by:
- Conducting an assessment of the potential market for services. This study has obtained feedback from existing clients and it would be useful to complement this information with input from potential clients who have not used the services of the programs. A survey and focus groups with potential clients and key intermediaries could be conducted with the objectives of estimating the size of the potential market (i.e. how large is the potential demand?) and determining the key services that are needed as well as possible options for delivering those services.
- Obtaining input through focus groups and planning sessions involving representatives of WD, CFDCs, the provincial associations, and UEDI delivery agencies as well as representatives of other organizations with whom the program could work. It will be important to build on the experience of the front line staff.
Based on the results, a formal program strategy should be prepared. The strategy should define:
What is the mission and goals of the program?
A strong mission statement and series of outcome-based goals is required to provide direction for the program. The evaluation indicates that perceptions regarding the goals and objectives of the program vary significantly across the delivery agencies. A fundamental question is where should the program be along the risk spectrum. If, for example, CFDCs are expected to apply the same loan criteria for the EDP loan fund that they apply for their general loan funds, is there a need for the program at all in the regions? If the objective is to provide loans and services to clients who may not otherwise be able to obtain those loans and services from a CFDC, then the program needs to expect that default rates will be higher (and loan funds may need to be topped up periodically) and the cost of delivering services will be higher.
What key services will be provided and how will those services contribute towards achievement of the goals?
Given the overall mission and goals of the program, the next step is to define the specific services that will be needed to meet those goals. Two key issues are:
- What level of pre-care and aftercare services should be provided?
- Should a separate loan fund be available (or should other loan funds such as the general loan fund be used where possible)?
The most common recommendation provided by the delivery organizations to improve the effectiveness of the program is to increase the level of pre-care and aftercare support. Such support is considered critical to the survival and development of the businesses and has a major impact on the ability of clients to repay their loans. Other suggestions were to provide more 1:1 consulting with clients, establish incubator services to assist new businesses or common services such as bookkeeping support, provide support for additional training, and establish job coaches or a mentorship program. It was also recommended that the delivery agencies work to improve the screening process to make sure clients are suited for entrepreneurship and self-employment.
One specific option that was discussed with the CFDCs, WD representatives, and CFDA representatives was the possibility of focusing existing resources on pre-care and aftercare services and using the existing loan programs to provide the needed capital. The majority of respondents were supportive of that approach noting that if sufficient pre-care and aftercare support will be available to clients, there is no need for a separate EDP loan fund in the rural areas. Clients will be able to utilize the general loan fund. However, others were in favour of maintaining a separate loan fund for EDP because they were concerned that clients many not be able to meet more stringent loan criteria associated with the general loan fund and they were concerned that, in an absence of a loan fund specifically targeted at entrepreneurs with disabilities, the CFDCs may place a lower priority on this target group.
Other recommendations we received with respect to the loan funds that could be considered in a new program model are to reduce the burden on clients (e.g. reduce interest rates, provide interest free periods, or incorporate a grant component), establish a micro-loan component with less stringent eligibility requirements, and reduce the emphasis on security in the loan criteria.
What is the relationship of the program to other resources in the community?
One of the advantages of using arms-length agencies for delivering services is that they may be able to attract other public sector and private sector funding unavailable to government departments. Some CFDCs have been very successful in developing relationships with other programs that can provide specific types support to entrepreneurs with disabilities such as income supports, assistive devices, training, technology and small loan funds. Overall, however, most of the delivery agencies have not made extensive use of the complementary resources that may be available. A key strategy in any renewed program structure, therefore, may be to become more proactive in identifying and developing resources (e.g. HRSDC, provincial government programs and private sector partnerships) that can complement the support provided by Western Diversification.
What is the marketing strategy for the program?
The goals of the promotional strategy should be to increase the effective demand for services by increasing awareness of the program amongst both potential clients and stakeholders who work with those clients. Some of the strategies that could be considered include:
- Developing a clear brand identity for the program (that would be consistent across delivery agencies). A key step in this direction would be to adopt a common program name and visual identity across both programs and all of the delivery agencies;
- Working to develop closer relationships with other organizations that interact with potential entrepreneurs with disabilities;
- Undertaking joint advertising programs and promotion initiatives, including the placement of news stories and articles;
- Establishing a common 1-800 call centre number for the EDP and UEDI in each province (perhaps using the Canada Business Service Centres in each province); and
- Developing a website specifically for the program.
What is the operating model and funding structure?
The existing delivery structure, which utilizes local delivery agencies that provide other services related to the target market, appears to be appropriate. Three key issues are:
- Whether the two programs should be formally merged or whether they may simply share a common branding.
- The need for, and potential role of, a structure to administer projects at the provincial level. Although the associations are generally commended for the way in which they have administered the funds, the model itself is not well supported by the CFDC staff who have indicated the highest priority is to increase access to funding for pre-care and aftercare services. An alternative model could be to maintain the position of EDP provincial coordinator but to find ways to directly apply more of the funding towards the direct costs of delivering services at the local level. A provincial program coordinator could play a very useful role in assisting in the development of the program strategy, developing and implementing marketing programs at the provincial level, networking with other organizations to access additional resources for the program and strengthen the referral networks, facilitating the sharing of information and best practices, and identifying special initiatives or projects which could be funded through other channels. The coordinator could work with both programs, supporting the activities of the CFDCs and the UEDI delivery agencies.
- To determine the most appropriate level and allocation of funding, it will be important to ensure there is consistency between the target objectives and resources that will be available (i.e. that the targets are reasonable and sustainable given the resources that WD is able to commit to the program). Over time, funding may be needed to both cover direct costs and replenish loan funds is they are not self-sustaining. In our interviews, both CFDCs and UEDI delivery agencies highlighted the importance of obtaining a commitment of longer-term support for the program (e.g. a 5 year commitment).
What key indicators and methodologies will be used to collect the data needed to effectively manage the program and report on its progress?
It will be important to develop a set of performance indicators that are consistent with the specific goals and objectives of the program as well as consistent across the delivery agencies. Specific methodologies and standard reporting forms can then be developed.