Articles

Benefit program assists would-be entrepreneurs


 

Joseph Robichaud Photography
Bill Parsons, below, president of RPI Cresting/Relative Promotions Inc. and Ross Finlay, president of Grey Matter Development.

By Sherry Anderson / Special Features Writer

It's Human Resources and Development Canada's best-kept secret.

A successful self-employment benefit program initiated about eight years ago that's giving would-be Nova Scotia entrepreneurs a leg-up in starting their own businesses.

"The impact we are having is tremendous," says Ross Finlay, whose Musquodoboit Harbour company - Grey Matter Development - is delivering the program for the federal agency on the Eastern Shore and Dartmouth.

Since becoming involved in the program four years ago, Mr. Finlay said "Grey Matter has helped start up 103 small businesses with roughly a 75 per cent success rate.

"Those businesses have employed upwards of 175 people in the last few years."

Prior to the program, anyone drawing Employment Insurance would lose their benefits once they became self-employed by starting up a new business.

"But the government recognized that for anyone starting a business, it takes six to eight months to get their feet on the ground," Mr. Finlay said.

He said it takes time to make the contacts and to get the business to where it is sustainable.

"But now, if you want to start your own business, you've done your homework and you have a rough business plan together, the government will help you through this program."

Mr. Finlay said successful applicants will be able to continue drawing EI benefits throughout the variable-length program.

Mr. Finlay said by taking the risk and supporting entrepreneurs over the first few months so they can run their business without worrying about how they are going to buy the food or pay the rent, it's unlikely they will go back on EI.

He said there are four basic elements to the program, including an assessment of a proposed business and whether it's viable.

"We look at how much work an applicant has done and what kind of marketing strategies they have thought about."

Mr. Finlay said the next step is six weeks of training on how to start-up and run a business.

"We cover everything from writing a business plan to legal aspects, negotiating, human resource, time and even stress management," he said. "All the things a person is going to experience in running their own business."

The third element is mentoring or counselling that he offers each applicant over the length of the program.

"We help them with their problems, discuss marketing ideas, or future opportunities," he said. "We also arrange networking get togethers and post their business on our web site."

And the final element is the financial support individuals received through their continued EI benefits.

But, Mr. Finlay cautioned would-be entrepreneurs must have their own capital for their business venture.

"If they don't, they won't be self-sustaining very long."