SMALL BUSINESS BC ANNUAL REPORT 2015-2016 MESSAGESMALL FROM BUSINESS THE BC CHAIR Small businesses matter in British Columbia.

On the Small Business BC Board of Directors, we represent a community of people and organizations who care about the success of small business in British Columbia. We are here to not only ensure that people who want to start a small business can access the tools and information they need, but they can achieve a successful and sustainable business. With a vision to the future, we connect with small business community stakeholders in British Columbia to ensure we are the leading provider of products, services and events that tomorrow’s business owners need and have access to.

The organization was founded on the belief that small business owners need access to relevant information, tools and resources to be successful and sustainable. Robust content, such as Small Business BC’s articles, blogs, seminars and webinars, allow entrepreneurs access to increase their knowledge, while the Ask the Expert programs provide skill-based advice for entrepreneurs across the province.

As a Board Member for the last five and a half years, and Chair for the past 18 months, I have witnessed a significant increase in the impact of these programs: 967,110 clients were served by Small Business BC, a 2 per cent increase over the previous year. This includes 32,604 in-person visits, 14,591 phone inquiries and 763 clients served through e-mail. As well, through programming, and with many private and public partners, our expanded events and education offerings enabled self-generated revenue to increase by 40 per cent.

On behalf of Small Business BC’s Board of Directors, we want to thank all of our stakeholders, clients, friends, partners, attendees and supporters.

Small Business BC’s CEO and staff also deserve credit for their innovation and delivery of highly regarded resources and programs that serve to meet the objectives of the organization and excellence to the small business community.

Finally, thank you to our Board of Directors – Sandra Miles, Judy Brooks, Robert Lapointe, Katie Dunsworth-Reiach, David McDougall, Christine Bergeron, Val Litwin, Tara Landes, Naina Sloan and Jackie Hunter – for their time, wisdom and commitment to Small Business BC.

Cheryl Carter Chair, Board of Directors Small Business BC

2 MESSAGESMALL FROM BUSINESS THE BC CEO Over the past seven years, Small Business BC has emerged as the premier resource for small businesses and entrepreneurs across the province looking to get the tools and information to make their small business a success.

In 2015-2016, our organization has continued to expand its outreach and impact within the province’s small business community, maintaining its leading position as the top-of-mind provider of products and services designed to help small businesses succeed.

Here are some of the ways our impact has grown in 2015-2016:

• This year, 967,110 clients were served by Small Business BC, a 2 per cent increase over the previous year. This includes 32,604 in-person visits, 14,591 phone inquiries and 763 clients served through e-mail.

• Client surveys demonstrated that efforts to increase in-person visits are succeeding, with 32,604 walk-in clients using our services this year, an 8 per cent increase over the previous year.

• In 2015-2016, a total of 262 seminars and webinars were held and attended by 6,651 small business owners across the province, a 13 per cent increase over the previous year. This is expected to grow exponentially next year.

Through these activities, and working with many private and public partners to expand its events and education programming, self-generated revenue has increased by 40 per cent.

In the coming year, our organization will continue to improve its client-facing capacity, extend its partner network and expand its awareness programs to ensure that members of the small business community across British Columbia are aware of the extensive services that are available to them.

I’d like to offer my sincere thanks to the people that make all this possible, including our committed Board of Directors, dedicated staff, volunteers and contractors. We also acknowledge the critical financial support of Western Economic Diversification Canada and the Ministry of Small Business and Red Tape Reduction, as well as the many community groups and provincial organizations that partner with us to make British Columbia’s small businesses as successful as they can be.

George Hunter Chief Executive Officer Small Business BC

3 SMALLBOARD OF BUSINESS BC DIRECTORS

CHERYL CARTER SANDRA MILES DAVID MCDOUGALL Chair | Director | Vancouver Director | Kelowna Principal Co-Founder and CEO Founder and Principal CarterConsulting Miles Employment Group Ltd. Blenz Thompson Okanagan

CHRISTINE BERGERON JUDY BROOKS KATIE JACKIE HUNTER Director | Vancouver Director | Vancouver DUNSWORTH-REIACH Director | Victoria VP, Community Business Banking Founder and Consultant Director | Vancouver Executive Director Bravo Lima Oscar Principal and Co-Founder Small Business Branch Talk Shop Media Ministry of Small Business and Red Tape Reduction

ROBIN LAPOINTE TARA LANDES NAINA SLOAN VAL LITWIN Director | Kitimat Director | Vancouver Director | Vancouver Director | Whistler Founder President and Founder Director General, Operations President and CEO Lapointe Engineering Ltd. Bellrock Benchmarking, Inc. Western Economic BC Chamber of Commerce Diversificaton Canada 4 SMALLSMALL BUSINESS BUSINESS BC BC EVENTS

The Annual Small Business BC Awards contest is the most visible small business awards competition in the province. This year marked SMALL BUSINESS BC the biggest year yet, with 535 nominations from 71 communities, a 16 AWARDS per cent increase in nominations from last year. The 13th Annual Small Business BC Awards Ceremony was sold out with 500 attendees at the Pan Pacific Hotel Vancouver on February 25, 2015. The Advertising Value Equivalency for this year’s Small Business BC Awards was over $3M CAD and the Potential Reach was 252 million, significantly higher than previous years.

The Annual INSPIRE Celebration of Entrepreneurship is the province’s largest Small Business Month event. At the sixth annual event, Small Business BC hosted 398 guests at the World of Science on October 1, 2016, a 2 per cent increase in attendees over last year. The event featured messages from the Minister of Small Business, Red Tape Reduction and Liquor Distribution, as well as presentations from the Founders and CEOs of Luvo Inc., Nature’s Path Foods, Music Group, , SHOEme.ca and YYoga.

This year, Small Business BC debuted its touring MyBizDay Series, a new event offering, which connects rural entrepreneurs to private SMALL BUSINESS BC’S and public business support programs to help them start-up, grow, create jobs and spur innovation in their community. The series MyBizDay featured three events – MyBizDay Thompson Okanagan, MyBizDay Northern BC and MyBizDay – which ran throughout Small Business Month in October and attracted 383 registrants. The continuation of the series is planned for next year, and includes one additional location in Metro Vancouver.

Small Business BC also debuted the first four events in the Local SMALL BUSINESS BC’S Leaders Series, the second new event offering in its growing events LEADERS portfolio. Held from April to July, these monthly business mixers held local at Small Business BC featured networking and discussion with an impressive roster of speakers from Vij’s Restaurant, 1-800-GOT-JUNK?, Vancouver Island Salt Co. and T&T Supermarket Inc. All four events sold out. In total, the series attracted 934 registrants. The continuation of the series is planned for the Fraser Valley and Vancouver Island next year.

Responding to a high-demand for custom offerings, Small Business BC created the third new events offering this year, Small Business BC Plus. These events happen quarterly and pair sponsored content with Small Business BC’s proven event formula. The first event in this series, Small Business BC Plus Dell and Microsoft, will be held at Simon Fraser University on April 21, 2016. 5 SMALL2015-2016 BUSINESS BC HIGHLIGHTS To better serve BC’s small business community, Small Business BC strives for excellence in its services, educational seminars, events and special initiatives. Ending March 31, 2016, Small Business BC finished another year of growth and improvements in developing ways to better serve business owners in British Columbia. Below is an overview of Small Business BC’s achievements this past year:

„„ Small Business BC excels at client satisfaction by in 2015-16 helped push a 2 per cent increase providing excellent customer service combined with in total website visits from 900,919 last year a wide range of products and services to meet the to 917,315 this year with significant increases changing needs of small business owners. Throughout in visits from Mainland South, Vancouver Island the year, client satisfaction remained above 70 per and Thompson Okanagan. cent, paralleling the performance of the previous three years. „„ Small Business BC remained highly active on its primary social media channels Facebook, Twitter, „„ A total of 967,110 clients were served by Small LinkedIn and YouTube. This year, an official Small Business BC in 2015-2016, a 2 per cent increase over Business BC Instagram account was added to last year. This includes 32,604 in-person visits, an improve reach and engagement with clients. The increase of 8 per cent over last year, as well as an 8 organization increased its online community by per cent increase in returning walk-in clients; 14,591 27 per cent from 26,045 followers last year to phone inquiries; and 2,600 clients served through 33,167 followers this year. This includes 19,100 on e-mail, a 12 per cent increase over last year. Twitter, a 25 per cent increase; 9,452 on Facebook, a 16 per cent increase; 3,523 on LinkedIn, a 35 per „„ To increase access to quality and affordable cent increase. education, Small Business BC offered 262 seminars in 2015-2016, serving a total of 6,651 clients via „„ In 2015-2016, Small Business BC launched seminar and webinar. Webinar attendees increased several awareness building initiatives, such as 1 per cent over the previous year from 3,881 to 3,914 the launch of three new event series - MyBizDay, clients served with a 13 per cent growth in uptake Local Leaders and Small Business BC Plus. The on Vancouver Island, 200 per cent in the North East organization saw 31,897 event attendees at its and 125 per cent on the North Coast. Attendance is group tours, seminars, outreach and events, a 52 expected to grow exponentially next year. percent increase over last year. Small Business BC also increased the number of marketing products „„ Small Business BC received a 53 per cent increase developed for its products and services, from in media mentions over last year, which can be 122 items last year to 181 this year, a 48 per cent attributed to attention from the Small Business BC increase. The number of marketing products Awards, MyBizDay Series, Local Leaders Series and disseminated, such as hand-outs, postcards, its significant contributions to Small Business Month banners, programs and social media sharables also activities, such as the Small Business Information increased to 44,984, a 16 per cent increase. Expo. The Advertising Value Equivalency for Small Business BC in 2015 to 2016 was over $8M CAD and „„ This year, Small Business BC saw the opportunity the Potential Reach was over 666 million, significantly for a third year of marketing and enhancement higher than previous years. Highlights include of MentorshipBC, an online search tool and mentions in BCBusiness, BCLocalNews, Business in resource for BC’s small business owners to find Vancouver, Bloomberg, National Post, The Vancouver mentorship programs and learn about the benefits Sun, Vancity Buzz and on CBC Radio, CKNW, CKPG- of mentorship. Launched in November 2013 in TV, Global News and Shaw TV, among others. response to the BC Small Business Accord, the number of clients using MentorshipBC in „„ The Small Business BC website is an increasingly 2015-2016 was 12,002, an increase of 100 percent popular source for information and resources to help over last year. small business owners. The focus on providing quality 6 content and improving search engine optimization SMALL2015-2016 BUSINESS BC STATEMENT OF FINANCIAL POSITION

CANADA/BRITISH COLUMBIA BUSINESS SERVICES SOCIETY Statement of Financial Position March 31

2016 2015

Assets

Current Cash and term deposits $ 708,947 $ 1,396,676 Restricted cash and term deposits (note 5) 467,492 522,379 Amounts receivable 92,481 9,339 Inventory 2,016 1,900 Prepaid expenses 8,133 8,259

1,279,069 1,938,553 Intangible Asset (note 7) - 64,048 Property and Equipment (note 6) 224,446 82,949

$ 1,503,515 $ 2,085,550

Liabilities

Current Accounts payable and accrued liabilities (note 8) $ 112,195 $ 131,375 Deferred contributions (note 9) 161,010 714,243 Deferred contributions – restricted (note 9) 38,592 84,305

311,797 929,923 Deferred Contributions – Restricted (note 9) - 14,667

311,797 944,590

Net Assets

Investment in Capital Assets 224,446 146,997 Operating Funds 538,372 570,556 Internally Restricted Fund (note 5) 428,900 423,407

1,191,718 1,140,960

$ 1,503,515 $ 2,085,550

Commitments (note 10) Approved on behalf of the Board:

“David McDougall” ………………………………………………………………… Director

David McDougall

“Cheryl Carter” ………………………………………………………………… Director Cheryl Carter

See notes to financial statements. 2

7 SMALL2015-2016 BUSINESS BC STATEMENT OF FINANCIAL POSITION

CANADA/BRITISH COLUMBIA BUSINESS SERVICES SOCIETY Statement of Operations Year Ended March 31

Operating Funds Projects 2016 2015 (schedule 1) Receipts Western Economic Diversification (note 2) $ 1,054,126 $ - $ 1,054,126 $ 1,054,126 Province of British Columbia (note 2) 686,000 - 686,000 686,000 Small business (schedule 2) 857,120 - 857,120 613,799 Rent recovery 19,913 - 19,913 19,359 Projects (schedule 1) - 15,395 15,395 182,014 Interest 13,485 - 13,485 9,552

Total Receipts 2,630,644 15,395 2,646,039 2,564,850

Expenditures Salaries and benefits 1,704,773 - 1,704,773 1,491,002 Operations 370,448 - 370,448 287,038 Vancouver lease/facility 335,006 - 335,006 322,422 Cost of sales 61,341 - 61,341 50,861 Advertising and promotion 25,953 - 25,953 17,044 Projects (schedule 1) - 15,395 15,395 202,495 Board meetings 13,199 - 13,199 19,163 Amortization 69,166 - 69,166 34,268

Total Expenditures 2,579,886 15,395 2,595,281 2,424,293

Excess of Receipts over Expenditures for Year $ 50,758 $ - $ 50,758 $ 140,557

See notes to financial statements. 3 8 IN BC, SMALL BUSINESS IS BIG BUSINESS

SMALL BUSINESS BC Suite 54 — 601 West Cordova Street Vancouver, BC, Canada V6B 1G1 1.800.667.2272 | [email protected]