MINISTRY OF ECONOMIC DEVELOPMENT AND TRADE Business Plan
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1 MINISTRY OF ECONOMIC DEVELOPMENT AND TRADE Business Plan
2 MESSAGE FROM THE MINISTER I am pleased to present the business plan for the Ministry of Economic Development and Trade which includes a report on our achievements for and outlines our commitments for Over the last year, we have worked with our private sector partners to ensure that our core businesses employment and business development, investment, and trade continue to help Ontario businesses to generate wealth and jobs in our province. In 1998, we were able to support the business community as it worked to expand our economy. Last year, the economy grew by 4.2 per cent, double the rate of growth in the rest of Canada. Hon. Al Palladini Here are some highlights of achievements over the last year: We helped to address strategic skills shortages in Ontario through our Strategic Skills Investment program while, at the same time, thousands of small business start-ups resulted in new jobs because of our Small Business Enterprise Centres and Self Help Offices programs. Once again, significant investment and new jobs resulted from Market Ontario, our investment marketing program. Following on the Minister s Export Marketing Task Force, we launched Ontario Exports Inc. to strengthen our export capacity. I personally led successful trade missions to Europe; the United States and South America; and the Middle East to support our trade efforts on behalf of the province. We also celebrated the success of Ontario exporters at our first annual Ontario Global Traders Awards event. We are proud of our achievements, but look to as an opportunity to continue to create a climate of prosperity in Ontario with job growth our highest priority for the new millennium. The Honourable Al Palladini Minister of Economic Development and Trade Business Plan Ministry of Economic Development and Trade 1
3 MINISTRY VISION Our vision is an Ontario business environment that enables us to compete successfully with the best in the world; an Ontario where its people continue to enjoy a high quality of life supported by well-paying jobs. Ontario continues to be faced with aggressive competition for export markets and investment from competing jurisdictions. Ontario's private and public sectors have a significant stake in helping businesses grow, increasing their level of competitiveness in a global economy, and marketing Ontario's strengths. We will pursue our vision with vigour and implement our mandate from the people of Ontario to stimulate economic growth, create more jobs and establish strong competitive advantages to ensure a more prosperous future for us and our children. Business Plan Ministry of Economic Development and Trade 2
4 CORE BUSINESSES The ministry s core businesses are: C employment and business development; C investment; and C trade. The employment and business development core business contributes to a positive business climate that supports economic growth and job creation by: C fostering innovation and entrepreneurship; C managing sector and business cluster relationships; C promoting the removal of barriers to business, including addressing business infrastructure gaps; and C providing advice on business issues and economic development policy. The investment core business markets the province as a premier investment location to key investment decision-makers and influencers through advertising/promotion, lead generation and investment servicing. The Market Ontario Program is a key element of the ministry s vision for promoting Ontario s competitive advantages at home and abroad, and attracting investment. The trade development core business expands Ontario s share of the global export market by working with Ontario firms, in particular, small and medium-sized businesses to: C increase the number of exporters; C expand in strategic and emerging markets; C develop and nurture a dynamic export culture; C champion the capabilities of Ontario firms in global markets; and C promote awareness of Ontario exports. Business Plan Ministry of Economic Development and Trade 3
5 ANNUAL REPORT ON KEY ACHIEVEMENTS FOR Ontario s economic performance for jobs, investment, and exports continues to outperform our competing jurisdictions Ontario s job growth was stronger than the average of Alberta, British Columbia, Quebec and the eight U.S. Great Lake states (3.7 per cent versus an average of 1.7 per cent). Ontario s investment in business machinery and equipment as a percentage of total GDP (1997 data) was 18 per cent higher than the average for Alberta, British Columbia and Quebec (8.0 per cent versus an average of 6.8 per cent). Ontario s per capita exports (1997 data) were three times higher than the average for Quebec and the eight U.S. Great Lake States (U.S. $9, versus an average of U.S. $2,787.57). Ontario continued to show strong growth in new business incorporations in ,948 for 1998 versus 50,227 for Support for Employment and Business Development We helped industry and the educational sector address strategic skills shortages by launching the new Strategic Skills Investment program. We committed $30 million to 21 strategic skills projects which leveraged an additional $85 million for a total investment of $115 million in strategic skills development. We facilitated networking among Ontario s fastest growing innovative firms. Over 200 CEO s from these firms met at our fifth annual Wisdom Exchange held in May 1998 to share their experiences and ideas about accelerating growth through innovation. Through our new Urban Economic Development (UED) office, we established strong working relationships with Ontario s six largest urban centres to build economic development capacity and provincial-local co-operation. The UED successfully partnered in 15 initiatives with these centres, including working with the newly amalgamated City of Toronto on their economic development strategy. We supported 3,000 small business start-ups resulting in 12,000 new jobs through our Small Business Enterprise Centres and Self-Help Offices programs. Five new Small Business Enterprise Centres were opened in Through our Young Entrepreneurs Program, 750 people were trained and 400 new businesses were started. Through our field offices, we delivered the Canada-Ontario Business Recovery Assistance Program which provided support to over 800 businesses in Eastern Ontario hardest hit by the January 1998 ice Business Plan Ministry of Economic Development and Trade 4
6 storm. The program provides support to individual businesses, outdoor tourism operators and tourism associations. We supported over 90 aboriginal economic development initiatives in partnership with all levels of government (including aboriginal governments) and industry. Support for Investment Development Our investment marketing program, "Market Ontario", which promotes Ontario as a preferred investment location in key international markets, continues to show positive results. Through this program, we supported 35 investment deals resulting in over 5,200 jobs and $575 million dollars of investment. Over 900 business immigrants were supported resulting in $95 million in investment and over 3,800 jobs. We improved our investment services by implementing a Key Investment Account Management Program to work with large multi-national companies located in Ontario considering expansion or development of n e w p r o j e c t s. Support for Trade Development The Minister's Export Marketing Task Force, with representatives from the public and private sector, developed a dynamic, long-range trade development strategy aimed at enhancing the export potential of Ontario-based small and medium-sized enterprises. Following on the Task Force's recommendations, we launched Ontario Exports Inc., a new domestic marketing campaign, and the Ontario Global Traders Awards program. We coordinated successful trade missions led by our Minister to Europe; the United States and South America; and the Middle East, and coordinated the involvement of the Premier and Ontario companies on the Team Canada trade mission to Mexico, Brazil, Argentina and Chile. We provided support to over 500 companies to develop their export capabilities, resulting in over $390 million in export sales. Business Plan Ministry of Economic Development and Trade 5
7 KEY COMMITMENTS AND STRATEGIES FOR Key Strategies In our work to support job creation by expanding economic development and trade, the ministry focuses its resources and energies on three key strategic objectives: C expanding the Ontario economy by strengthening business sectors and clusters, continuing to remove barriers to business, improving business infrastructure, encouraging private sector investment in skills development, and leading economic development and trade policy and business advice across government; C increasing foreign and domestic investment in Ontario by marketing the province as a preferred North American business location to leading international corporations and Ontario companies; and C increasing Ontario's share of the global export market by expanding the number of small and mediumsized businesses exporting, building export sales in key and emerging markets, and developing a dynamic export culture in Ontario. To ensure that our organization has the capacity to achieve our strategic objectives, we will continue to develop and motivate our staff to provide excellent customer service and to review and fundamentally improve our skills and knowledge in critical areas, such as the use of information technology, marketing, communications and teamwork. Key Commitments For Ontario s overall economic performance against competing jurisdictions, our aim for is for the province's overall growth in jobs, exports per capita and business machinery and equipment investment to surpass the performance of our competing jurisdictions. F o r E m p l o y m e n t a n d B u s i n e s s D e v e l o p m e n t, our commitment is to support strong job growth in Ontario. We will participate in the government s response to the recommendations of the Jobs and Investment Board. We will respond to strategic skills shortages that are bottlenecks to job creation by fostering industry partnerships with colleges, universities and other training providers to deliver on the government s commitment to invest $100 million through the Strategic Skills Investment program over the next five years. Business Plan Ministry of Economic Development and Trade 6
8 With our private sector co-sponsors, we will officially launch the Innovators Alliance, a public-private sector partnership to promote innovation and networking opportunities for innovative growth firms. We will continue to identify and promote the removal of barriers to business by resolving trade and investment disputes and supporting the negotiation of international and internal trade agreements. We will also identify and remove barriers to business growth and investment through continued support and partnerships with sectors and key business clusters. For example, we will engage in discussions on global climate change to ensure that the concerns of Ontario industries are addressed in the Canadian greenhouse gas emission reduction implementation plan. We will continue to support and partner with the largest metropolitan economies to build key relationships, assist in capacity building and identify economic development opportunities. We will support small business start-ups through the expansion of the Small Business Enterprise Centres program to increase the total number of Centres to 15 by the end of F o r I n v e s t m e n t D e v e l o p m e n t, our commitment is to continue the strong investment results achieved in We will continue to aggressively market Ontario as a preferred investment location in North America. We will also launch Ontario s participation in the federal government s immigrant investor fund program. For Trade Development, our commitment is to support 360 companies to develop their export capabilities, resulting in an estimated $500 million in export sales. We will help small businesses start exporting by implementing new initiatives to promote a more dynamic global mindset and by providing them with the tools to succeed in export markets. Business Plan Ministry of Economic Development and Trade 7
9 KEY PERFORMANCE MEASURES Core Business: Ontario's Overall Economic Indicators Goals/Outcomes Measures Targets/Standards Commitments Ontario's economy S t r o n g j o b g r o w t h. J o b g r o w t h s t r o n g e r t h a n J o b g r o w t h w i l l b e 1 0 p e r c o n t i n u e s t o b e a t h e a v e r a g e f o r c o m p e t i n g c e n t s t r o n g e r t h a n t h e l e a d e r i n N o r t h j u r i s d i c t i o n s. average of the 3 provinces America. and the 8 U.S. Great Lakes s t a t e s. S t r o n g i n v e s t m e n t B u s i n e s s i n v e s t m e n t I n v e s t m e n t ( d a t a ) i n performance. s t r o n g e r t h a n o t h e r m a j o r b u s i n e s s m a c h i n e r y a n d C a n a d i a n p r o v i n c e s. e q u i p m e n t a s a p e r c e n t a g e o f t o t a l G D P w i l l b e s t r o n g e r than the average for Alberta, B r i t i s h C o l u m b i a a n d Quebec. S t r o n g e x p o r t P e r c a p i t a e x p o r t s s t r o n g e r O n t a r i o s p e r c a p i t a e x p o r t s performance. t h a n c o m p e t i n g i n d u s t r i a l ( d a t a ) w i l l b e s t r o n g e r j u r i s d i c t i o n s. than the average for Quebec and the 8 U.S. Great Lake S t a t e s. S t r o n g n e w c o m p a n y N e w b u s i n e s s N e w b u s i n e s s i n c o r p o r a t i o n s f o r m a t i o n. i n c o r p o r a t i o n s s t r o n g e r w i l l e x c e e d l e v e l. than the previous year. Core Business: Employment and Business Development Goals/Outcomes Measures Targets/Standards Commitments Improved government E f f e c t i v e n e s s a n d B u s i n e s s c o m m u n i t y T e n p e r c e n t i m p r o v e m e n t i n r e s p o n s i v e n e s s t o t i m e l i n e s s o f m i n i s t r y s a t i s f i e d w i t h m i n i s t r y c u s t o m e r s a t i s f a c t i o n o v e r b u s i n e s s i s s u e s. r e s p o n s e s t o b u s i n e s s m a n a g e m e n t o f i s s u e s a s previous survey results i s s u e s. m e a s u r e d t h r o u g h a ( ). c u s t o m e r s a t i s f a c t i o n survey. S u s t a i n t h e g r o w t h o f J o b g r o w t h i n I n c r e a s e j o b g r o w t h ( o n T e n p e r c e n t g r o w t h ( o n Ontario's innovative Innovative Growth average) for IGFs supported average) in jobs for IGF client f i r m s. F i r m s ( I G F s ) s u p p o r t e d by Ministry by an average f i r m s s u p p o r t e d b y M i n i s t r y by the Ministry. of ten per cent annually. o v e r l e v e l. Business Plan Ministry of Economic Development and Trade 8
10 Core Business: Investment Goals/Outcomes Measures Targets/Standards Commitments O n t a r i o r e m a i n s a n Level of awareness of Awareness of Ontario as a A w a r e n e s s o f O n t a r i o t o r a n k e x c e l l e n t p l a c e t o O n t a r i o a s a p r e f e r r e d k e y c o m p e t i t i v e j u r i s d i c t i o n i n t h e t o p t h i r d o f k e y i n v e s t. i n v e s t m e n t l o c a t i o n i n in North America. c o m p e t i t i v e j u r i s d i c t i o n s i n North America. North America. I n v e s t m e n t i n O n t a r i o I n v e s t m e n t a n d j o b s P r o s p e c t i v e i n v e s t o r s : t h r o u g h M i n i s t r y supported by Ministry staff C 2 6 b u s i n e s s i n v e s t m e n t s s u p p o r t. working with prospective r e s u l t i n g i n $ m i l l i o n i n i n v e s t o r s a n d b u s i n e s s i n v e s t m e n t a n d 3, j o b s i m m i g r a n t s. c r e a t e d o r m a i n t a i n e d. B u s i n e s s i m m i g r a n t s : C b u s i n e s s i m m i g r a n t s r e s u l t i n g i n $ 7 5 m i l l i o n i n i n v e s t m e n t a n d 2, j o b s c r e a t e d o r m a i n t a i n e d. Core Business: Trade Goals/Outcomes Measures Targets/Standards Commitments O n t a r i o ' s e x p o r t s E x p o r t s f o r s m a l l a n d I n c r e a s e e x p o r t s a l e s a s a I n c r e a s e e x p o r t s a l e s c o n t i n u e t o g r o w. m e d i u m - s i z e d c o m p a n i e s d i r e c t r e s u l t o f M i n i s t r y s u p p o r t e d b y 2 5 p e r c e n t t o s u p p o r t e d b y M i n i s t r y s u p p o r t b y p e r c e n t $ m i l l i o n. t o d e v e l o p t h e i r e x p o r t by the year , from c a p a b i l i t i e s. the base year. I n c r e a s e n u m b e r o f c o m p a n i e s s u p p o r t e d t o d e v e l o p t h e i r e x p o r t c a p a b i l i t i e s b y 1 2 p e r c e n t t o Business Plan Ministry of Economic Development and Trade 9
11 MINISTRY SPENDING BY CORE BUSINESS ACTUALS* ECONOMIC DEVELOPMENT AND TRADE $89.6M 376 Staff EMPLOYMENT AND BUSINESS DEVELOPMENT $8.6M 100 Staff INVESTMENT $25.2M 75 Staff C I n n o v a t i o n a n d E n t r e p r e n e u r s h i p C I n v e s t m e n t M a r k e t i n g C M a n a g e S e c t o r R e l a t i o n s h i p s C Foreign Direct Investment Sales & Services C P r o m o t e t h e R e m o v a l o f B a r r i e r s t o B u s i n e s s C D o m e s t i c I n v e s t m e n t A c c o u n t M a n a g e m e n t C A d v i s e o n B u s i n e s s I s s u e s a n d L e a d E c o n o m i c C B u s i n e s s I m m i g r a t i o n S e r v i c e s Development and Trade Policy Across Government C Urban Economic Development TRADE DEVELOPMENT $10.9M 60 Staff WIND-DOWN OF TERMINATED FINANCIAL ASSISTANCE $32.1M 25 Staff C Export Advocacy C T e r m i n a t e d F i n a n c i a l A s s i s t a n c e t o B u s i n e s s C Export Marketing and Development C M a n a g e I n d u s t r i a l P a r k s C E x p o r t P r o m o t i o n MAIN OFFICE/INTERNAL ADMINISTRATION $12.8M 116 Staff C I n t e r n a l A d m i n i s t r a t i o n *PSAAB Basis N o t e s : S t a f f n u m b e r s a r e f u l l - t i m e e q u i v a l e n t s. T h e M i n i s t r y p r o v i d e s i n t e r n a l a d m i n i s t r a t i v e s u p p o r t s e r v i c e s t o t h e M i n i s t r y o f T o u r i s m a n d t h e M i n i s t r y o f I n t e r g o v e r n m e n t a l A f f a i r s. T h e M i n i s t r y a l s o p r o v i d e s f i e l d s e r v i c e s t o t h e M i n i s t r y o f T o u r i s m. Business Plan Ministry of Economic Development and Trade 10
12 MINISTRY APPROVED ALLOCATIONS BY CORE BUSINESS PLAN* ECONOMIC DEVELOPMENT AND TRADE $110.5M 375 Staff EMPLOYMENT AND BUSINESS DEVELOPMENT $52.9M 120 Staff INVESTMENT $26.3M 77 Staff C A d v i s e o n B u s i n e s s I s s u e s a n d L e a d E c o n o m i c C I n v e s t m e n t M a r k e t i n g Development and Trade Policy Across Government C Investment Services C E n t r e p r e n e u r s h i p C B u s i n e s s I m m i g r a t i o n S e r v i c e s C I n n o v a t i o n & B u s i n e s s D e v e l o p m e n t C I n t e r n a t i o n a l a n d I n t e r p r o v i n c i a l T r a d e a n d I n v e s t m e n t N e g o t i a t i o n s a n d D i s p u t e s C M a n a g e S e c t o r R e l a t i o n s h i p s C P r o m o t e t h e R e m o v a l o f B a r r i e r s t o B u s i n e s s C Urban Economic Development TRADE DEVELOPMENT $10.7M 60 Staff WIND-DOWN OF TERMINATED FINANCIAL ASSISTANCE $8.5M 5 Staff C T r a d e D e v e l o p m e n t C T e r m i n a t e d F i n a n c i a l A s s i s t a n c e MAIN OFFICE/INTERNAL ADMINISTRATION $12.1M 113 Staff C I n t e r n a l A d m i n i s t r a t i o n *PSAAB Basis N o t e s : S t a f f n u m b e r s a r e f u l l - t i m e e q u i v a l e n t s. Business Plan Ministry of Economic Development and Trade 11
13 T h e M i n i s t r y p r o v i d e s i n t e r n a l a d m i n i s t r a t i v e s u p p o r t s e r v i c e s t o t h e M i n i s t r y o f T o u r i s m a n d t h e M i n i s t r y o f I n t e r g o v e r n m e n t a l A f f a i r s. T h e M i n i s t r y a l s o p r o v i d e s f i e l d s e r v i c e s t o t h e M i n i s t r y o f T o u r i s m. WHO TO CALL Questions or comments about the ministry s business plan are welcomed. Visit or call our public inquiries staff at (416) General Inquiries Communications and Public Affairs (416) Employment and Business Development Mary Bissola (416) Investment Kaili Sermat-Harding (416) Trade Development Anthony LaMantia (416) Field Services and Entrepreneurship Janet Rudd (416) Corporate Services Jo Ann LeBlanc (416) Business Plan Ministry of Economic Development and Trade 12
14 Copies of this document are available free from: Publications Ontario, 880 Bay Street, Toronto ON M7A 1N8. Tel: (416) Out-of-town customers except Ottawa call: In Ottawa, call (613) or toll-free Telephone service for the hearing impaired is available toll-free throughout Ontario at Order copies via the Internet at Obtain an electronic copy of this document at Queen s Printer for Ontario, 1999 ISBN
15 Ce document est disponible en français
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