MB4Youth Division

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Young Entrepreneurs Program

Program Criteria | How to Apply | Financial Assistance | What Happens Next | Reimbursement Procedures | Important Notice |Terms and Conditions | Important Contacts | Offices | Business Plan Overview

For a print version of this information and application click here.

Young Entrepreneurs is designed to encourage Manitoba's young people to start their own full-time businesses and pursue self-employment as a career choice.

Applications are accepted on a year-round basis from Manitoba youth aged 18 to 29 years.  Under the Young Entrepreneurs program, approved applicants will be eligible for a grant of up to $4000 to help defray business start-up cost and capital expenditures.

For more information please call 945-3556 in Winnipeg or toll-free 1-800-282-8069 (ext. 3556).

Program Criteria

Please note: Businesses that are currently in full operation are not eligible to apply.

Applicants:

• Youth 18 to 29 years of age are eligible to apply (Proof of age will be required).
  
  
• Must be Canadian citizens or have received landed immigrant status
  
• Must attend a three-day Business Start training program.  Some applicants may be exempt if able to demonstrate past attendance at a similar business training.
  
  
• Where more than one business partner or investor is involved, the principal applicant to the program must be significantly involved in the management of the business. Not all business partners must be eligible youth, however, the principal applicant must be in the 18-29 years of age range and meet all eligibility criteria.
  
  
• Approved applicants must be working at the businesses on a full-time basis, or if the business is not yet operational, the applicant must plan to work full-time and may not be employed elsewhere or attending school on a full-time basis elsewhere.
  
• The applicant must be actively involved in all aspects of the business on a day-to-day basis.

Business Ventures:

• The business which is seeking program assistance must not be currently operated by the applicant on a full-time basis.
  
  
• The proposed business must be year-round and permanent in nature.   Proposals to initiate part-time or seasonal businesses will not be considered.
  
  
• The proposed business must provide the principal applicant with full-time self-employment (at minimum 30 hours per week).
  
  
• Must be based within Manitoba.
  
  
• Must be a business created for the purpose of making a profit.
  
  
• Only one grant per business is available.
  
  
• Must demonstrate in the business plan and application must show that the business has a reasonable chance of success.
  
  
• Must not be an expansion of an existing business.
  
  
• Where existing business ventures and/or assets are being purchased, the applicant must demonstrate that all business transactions will be/are completed at fair market value.

Those not eligible to apply to the Young Entrepreneurs Program include:

• Applicants who are full-time students or planning to return to school on a full-time basis.
  
  
• Applicants who are currently self-employed full-time.
  
  
• Applications to support business ventures that are in full operation prior to applying to the program for assistance.
  
  
• Applications to expand existing businesses.
  
  
• Applicants who are receiving grant funding from any other Federal or Provincial program will not be considered. Loans and loan guarantees are not considered to be grants.
  
  
• An applicant who has received program support in the past.
  
  
• Applications to support the purchase of existing business ventures or assets that have received Young Entrepreneurs Program grant support within the previous two years.
  
  
• Business ventures that provide regulated professional services in self-governing professional occupational categories in Manitoba.

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How to Apply

1. Read the Young Entrepreneurs booklet/application. Contact program officials listed below if you have any questions relating to the application process or eligibility.
   
   
2. Application must be submitted prior to the start of the business venture. If necessary, completed business plans may be submitted to the program after the initial program application form has been forwarded.
   
   In rural Manitoba

• Contact the Agriculture, Food and Rural Initiatives office or Community Development Corporation nearest your location.  These offices can provide general information and assistance in completing the application and/or business plan.  These office locations are listed under Offices below.
  
  
• Complete all sections of the Young Entrepreneurs application and develop a business plan.
  
  
• Complete Section c - Business Plan Overview check list to ensure all key sections have been included in your business plan and application.
  
  
• Make a copy of your Young Entrepreneurs application, business plan and all correspondence for your records.
  
  
• Submit the Young Entrepreneur application to either a Community Development Corporation, or Agriculture, Food and Rural Initiatives office nearest your location.
  

In Winnipeg

• The Canada/Manitoba Business Service Centre listed below can assist applicants with the development of their business plans.
  
  
• Complete all sections of the Young Entrepreneurs application and develop business plan.
  
  
• Register for the Business Start Workshop at 984-0037
  
  
• Complete the 2 page Business Plan Overview check list to ensure all key sections have been included in your business plan and application.
  
  
• Make a copy of your Young Entrepreneurs application, business plan and all correspondence for your records.
  
  
• Submit your application to the MB4Youth Division, located at 310-800 Portage Avenue, Winnipeg, Manitoba, R3G 0N4.

3. If you have any questions or concerns, please contact your nearest Agriculture, Food and Rural Initiatives or Education, Citizenship and Youth office.

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Financial Assistance

The Young Entrepreneurs program provides grant funding to reimburse approved applicants for eligible business startup costs and capital expenditures. The Young Entrepreneurs program grant is based on the ability of the applicant to identify a shortfall in startup capital to properly establish the business, either for capital or operating expenditures The program will provide a contribution of up to $4000 based on 50% of startup costs. 

Example 1
Approved applicant spends $8000 to set up the business.

• Grant amount would be $4000.00

Example 2
Approved applicant spends $7500 to set up the business.

• Grant amount would be $3750
  

Eligible Startup Costs - license fees, space rental, telephone installation, utilities, office supplies, office equipment, equipment rental, business travel costs, etc.   Inventory costs are not eligible. 

Eligible Capital Cost Expenditures - recent purchases of land, buildings, office equipment and other significant equipment and fistures. Grant amount would be $1800.00Grant amount would be $2000.00 + $2000.00 = $4000.00

Please note:

• Inventory costs and "good will" are not eligible expenses under this program.
• In cases where existing business ventures and/or assets are being purchased, the program will require additional information to verify receipts and demonstrate the transactions were completed at "arms-length" or fair market value.

What Happens Next

Once the application has been submitted to the Young Entrepreneurs Program:

1. Applications will be assessed for program eligibility.
   
   
2. In Rural Manitoba
   Local Agriculture, Food and Rural Initiatives or Community Development Corporation staff will contact applicant:
   • to discuss youth application,
   • request any additional information needed for the assessment of the application,
   • offer referrals to another organization to assist with business plan development, and
   • coordinate attendance of a Business Start Workshop
   • These staff and related resources are intended to assist the applicant to develop a complete business plan prior to final review.

   In Winnipeg
   A program representative from Education, Citizenship and Youth or Industry, Economic Development and Mines will contact you:

   • to discuss you application,
   • if not yet completed, coordinate attendance of a Business Start Workshop,
   • request any additional information needed for the assessment of the application, and
   • identify resources and supports available at the Canada/Manitoba Business Service Centre to assist with business plan development.
   • these staff and related resources are intended to assist the applicant to develop a complete business plan prior to final review.
     
     
3. Application Review and Assessment
   • Eligible applications which have submitted a comprehensive business plan to a local Community Development Corporation (CDC) will be reviewed and assessed by the local CDC board.
   • Eligible applications that have not been reviewed by a CDC will be forwarded to the Young Entrepreneurs Program for review and approval recommendations.
     
     
4. Applicants will be notified by letter of the funding decision for their application.
   • If an application has been approved for grant funding, information on the claim for reimbursement process will be sent to you.
   • If an application is not selected for grant funding, program staff will identify the basis for this decision in the notification letter. You may contact the Young Entrepreneurs program at (204) 945-4284 for further information and clarification if needed.
   • All applications for Young Entrepreneurs business grants must be reviewed by several authorities as part of the approval process. Final approval of applications is at the discretion of the Young Entrepreneurs Program.
     
     
5. At the end of 10 weeks of business operation, approved applicants must submit to the program: a log of their daily hours worked at the business, a completed and signed claim form with copies of paid invoices for purchases and canceled cheques to support purchases. Please allow 6-8 weeks for processing of claims.

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Reimbursement Process

• Approved applicant will receive a letter outlining this process in greater detail.
  
  
• Approved applicants are required to maintain and submit a log of the daily hours and activities spent in operating their business for the first 10 weeks of business operation. As the applicant is required to work at the venture on a full-time basis, the program anticipates that a minimum of 300 hours will be worked during this period.
  
  
• Approved applicants will be reimbursed upon receipt of a Claim for Grant Funding form .  This claim form can be submitted only after 10 weeks of full-time self-employment.
  
  
• Young Entrepreneur grants may be withheld if the applicant's contribution does not meet the minimum $500.00 in eligible business startup costs; if the applicant does not work full-time at his/her new business; or if any other program conditions are not met.
  
  
• All approved applicants will be subject to monitoring throughout the program duration.
  
  
• A claim for reimbursement will not be processed until the applicant has been monitored, submits a log of daily hours, and completes the Business Start workshop. A claim for reimbursement must be accompanied by copies of receipts and canceled cheques for all purchases/expenses being claimed.

Important Notice

The Young Entrepreneurs Application has been designed so that most applicants will be able to complete the application without assistance from a business consultant or other professional. Similarly, most applicants will be able to develop a business plan without the assistance of a business consultant or other professional. Community Development Corporations, Agriculture, Food and Rural Initiatives offices and the Canada/Manitoba Business Service Centre listed within this Web page can assist applicants with the development of their business plans at no charge. Additional reference material can be obtained from the Canada Business Service Centres, Interactive Business Planner at: www.cbsc.org/ibp.

Terms and Conditions

1. Officers of the program will make all necessary investigations in reviewing this application to ensure the information provided is true and complete.
   
   
2. Applicants may be requested to provide additional documentation that may be required to verify program eligibility requirements.
   
   
3. Young Entrepreneurs may make a public announcement relating to this approval of this grant.
   
   
4. Approved applicants agree to provide information that will assist in the review and evaluation of the Skill Development for Young Entrepreneurs program.
   
   
5. I understand that applicants may receive future contact from the Partners With Youth program that relate to workshops or other training opportunities for young entrepreneurs.
   
   
6. I understand that the officials responsible for Partners With Youth have the authority to assess each application on its individual merits and will exercise their absolute discretion in determining the amount of grant funding approved for each business.
   
   
7. I understand that payment made to the applicant/business will be taxable income in the year issued to the individual/business.

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Important Contacts

Canada/Manitoba Business Service Centre
Suite 250, 240 Graham Avenue, Winnipeg, Manitoba, Phone (204) 984-2272 or toll-free 1-800-665-2019, Fax (204) 983-3852, Web site - http://www.cbsc.org

Contact the toll-free number for information on the many satellite offices located throughout Manitoba.

Manitoba Business Start - 3 Day Workshop (offered by the Canada/Manitoba Business Service Centre)
For more information on the program and upcoming dates contact Ann O'Connell at (204) 945-7721 or Jeanine Lafond at (204) 984-0037

Canada Customs and Revenue Payroll Deductions Account
To obtain a Payroll Deductions Account Number and information on employer/employee contributions to E.I. and C.P.P., contact Canada Custom and Revenue Agency at 1-800-959-5525.

Workers Compensation
To inquire about compulsory and non-compulsory registration phone the Workers Compensation Board of Manitoba in Winnipeg at 954-4505 or outside Winnipeg call toll-free 1-888-504-1339.

Employment Standards
If you have any questions regarding your obligations as an employer in the Province of Manitoba, for example, payment of overtime, vacation pay, minimum wage or construction wages, please contact The Department of Labour - Employment Standards Branch:
In Winnipeg phone 945-3352 or outside Winnipeg call toll-free at 1-800-821-4307. Web site - http://www.gov.mb.ca/labour/standards/

Offices

• Winnipeg

Manitoba Education, Citizenship and Youth
310-800 Portage Avenue
Winnipeg, MB  R3G 0N4
Phone: 945-4284 or toll-free 1-800-282-8069 ext. 4284
E-mail: shampton@gov.mb.ca

• Rural and Northern Manitoba

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Business Plan Overview

To ensure that all aspects of the business plan have been addressed, please ensure that all of the following data has been included in your business plan.

Be advised that incomplete business plans or applications will not be assessed.

• Research data and general assumptions used to determine your business projections.
• Names of major suppliers (locations, and services/products) and their credit terms. Can you change your suppliers easily if required?
• Who are your competitors? How long have they been in business? We require names, locations and services/products.
• What group will make up your customer base and where are your customers located (demographic information)?
• Why will customers prefer your product or service to that of your competitors?
• Research conducted or found that supports these assumptions about your customers.
• The estimated size of your market in terms of territory, type of customer and consumer price ranges for your product or service.
• The form(s) of advertising you plan to use to market your business. (i.e. business cards, radio, newspaper, pamphlets).
• The amount you plan to spend on advertising during the first (6) months of business operations.
• What materials will be used to make your product or provide your service?
• What is or will be the average cost of these materials?
• What is the average labour cost required to make your product or to provide your service?
• What are the overhead costs (rent, hydro, water, taxes, permits, licenses, mailing, maintenance, equipment, machinery, vehicle, etc…) that will be factored into your product or service price in order to cover general business expenses?
• Details on the costs associated with providing credit from your sales.
• Provisions made for warranty/servicing costs in your pricing.
• Provisions made for startup costs in your pricing.
• Average cost per unit for your product or service including all labour, expenses and other overhead costs.
• Price you will charge for your product or service.
• Price the competitors charging for similar services or products.
• Level of sales you will have to reach to break even (including your labour, expenses and other overhead). What insurance, government regulations, licenses, permits and/or other approvals are required for your business and have they been obtained?
• Business requirements as to size and type of premises (including, building, land, office space, etc.) and major pieces of equipment, vehicles, furniture, fixtures, signs, etc.
• Special skills required to operate your business venture.
• Plans you have to help you and your business succeed (i. e. courses in accounting or management, training, workshops, personal mentors or business advisors, etc.).
• Estimated number of employees required (excluding owners) at business start up and within 3 years of business startup How many of the positions will be full-time and/or part-time?
• Franchise, patents, trademarks, licensing agreements, etc. in your business.
• Financial implications of pending franchise, patents, trademark or licensing agreements?
• Cash flow forecast for the first 12 months of business operations.
• Projected income and expenses for first two years of business operations.
• Assets or equity that will be used in the business venture.
• Other sources of funding being used.

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