Final Evaluation of the Community Futures Program in Ontario

Final Report — October 2008

Prepared for: Industry Canada/FedNor
Prepared by: Government Consulting Services. Tabled and approved at DEC.

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Table of Contents

Executive Summary

1.0 Introduction

• 1.1 Description of the Community Futures Program in Ontario
  • 1.1.1 CF Program Context and Objectives
  • 1.1.2 Program Administration and Delivery
  • 1.1.3 CF Program Areas
  • 1.1.4 Budget

2.0 Evaluation Methodology

• 2.1 Evaluation Questions and Issues
• 2.2 Methodology
  • 2.2.1 Document Review
  • 2.2.2 Stakeholder Interviews
  • 2.2.3 Surveys
  • 2.2.4 Administrative and Labour Market Data
  • 2.2.5 Comparative Analysis
  • 2.2.6 Case Studies
• 2.3 Limitations of Methodology

3.0 Evaluation Findings

• 3.1 Relevance
  • 3.1.1 Need for the CF Program
  • 3.1.2 Complimentarity and Duplication
  • 3.1.3 Linkages Between CFDC, CF and Industry Canada Objectives
  • 3.1.4 Role of Federal Government in Delivering CF Program
• 3.2 Design and Delivery
  • 3.2.1 Effectiveness of CFDC Networks
  • 3.2.2 Issues Impacting the Success of the Program
  • 3.2.3 CFDC Involvement in Strategic Planning
  • 3.2.4 Management of Investment Funds
  • 3.2.5 Performance Measurement
• 3.3 Program Success
  • 3.3.1 Appropriateness of Information, Referrals and Counselling to Clients
  • 3.3.2 Impact on Business Knowledge and Skills of Clients
  • 3.3.3 Impact on New and Existing Businesses
  • 3.3.4 Needs of Official Languages Minority Communities (OLMCs)
  • 3.3.5 Intermediate Impact of CF Program
  • 3.3.6 Long-Term Impact of CF Program.
• 3.4 Cost-Effectiveness and Alternatives
  • 3.4.1 Cost-Effectiveness of the CF Program
  • 3.4.2 Alternatives to the CF Program
• 3.5 Other Issues
  • 3.5.1 Lessons Learned
  • 3.5.2 Progress on Previous Recommendations

4.0 Overall Conclusions

IC/FedNor Management Responses to the 2008 Community Futures Program Final Evaluation

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List of Tables

• Table 1. Number of CFDCs by Region
• Table 2. Loan Activity, by Region (2002-2008)
• Table 3. Number of General Inquiries Received, by Region (2004-2008)
• Table 4. Number of In-Depth Interviews Conducted, by Region (2004-2008)
• Table 5. CF Program Budget
• Table 6. Summary of Evaluation Issues and Questions
• Table 7. List of Interview Groups
• Table 8. Response Rates for the CFDC Survey
• Table 9. CFDC Survey Response Rates, by Region
• Table 10. Case Study Community Selection Criteria
• Table 11. Client Population and Response
• Table 12. Representativeness of CED Information
• Table 13. Labour Force Participation Rates in Ontario vs. CFDC Served Communities
• Table 14. Unemployment Rates in Ontario versus CFDC Served Communities
• Table 15. Average Earnings in Ontario versus CFDC Served Communities
• Table 16. Comparison of EODP, NODP, and the CF Program
• Table 17. Summary of EODP and NODP Funds Accessed by CFDCs
• Table 18. Yearly Growth Rate of Investment Fund (2004-2008)
• Table 19. Comparison of Loan Loss Rates
• Table 20. Summary of Performance Reporting Requirements
• Table 21. CFDC Involvement in CED Projects
• Table 22. Dollars Contributed to CED Projects by CFDCs
• Table 23. Comparison of CFDC Loan and Business Activities
• Table 24. Comparison of CFDC Investment Funds
• Table 25. Comparison of CFDC Costs per Outcome 62

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List of Figures

• Figure 1. Geographic Division of CFDC Regions
• Figure 2. Client and CFDC Awareness of Other Programs Offering Similar Services
• Figure 3. Percent of Investment Portfolio Held in Financial Reserves
• Figure 4. Rates of Investment Fund Growth, With and Without Capitalization
• Figure 5. Regional Comparisons of Number of Services Provided
• Figure 6. Population Comparisons of Number of Services Provided
• Figure 7. Client Satisfaction With CFDC Services
• Figure 8. Success at Improving Business Skills and Knowledge of Clients
• Figure 9. Client Use of Information Obtained From CFDC
• Figure 10. Client and CFDC Opinions on the Success of the CF Program in Creating New
• Figure 11. Client and CFDC Opinion on Enhanced Ability to Access Funds from Traditional
• Figure 12. Partner Opinion on the Impact of CED Work in Community
• Figure 13. Client Opinion on the Success of the CF Program in Diversifying Economy of Communities
• Figure 14. Client Opinion on CFDC Success at Building Community Capacity
• Figure 15. Unemployment rates, CFDC Regions Compared to Ontario
• Figure 16. Median Household Earnings, CFDC Regions Compared to Ontario
• Figure 17. Client Opinion on the Long-Term Impacts of the CF Program 59

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List of Acronyms

• ACOA — Atlantic Canada Opportunities Agency
• BDC — Business Development Bank of Canada
• BR+E — Business Retention and Expansion
• CED-Q — Canada Economic Development for Québec
• CED — Community Economic Development
• CF — Community Futures
• CFDC — Community Futures Development Corporation
• CFO — Community Futures Organization
• EODP — Eastern Ontario Development Program
• FedNor — Federal Economic Development Initiative for Northern Ontario
• Gs&Cs — Grants and Contributions
• GCRS — Grants and Contributions Reporting System
• GCS — Government Consulting Services
• GDP — Gross Domestic Product
• IC — Industry Canada
• NODP — Northern Ontario Development Program
• NWOIP — Northwestern Ontario Investment Pool
• O&M — Operations and Management
• OACFDC — Ontario Association of Community Futures Development Corporations
• OLMCs — Official Languages Minority Communities
• OMAFRA — Ontario Ministry of Agriculture Food and Rural Affairs
• R&D — Research and Development
• RDA — Regional Development Agency
• RED — Rural Economic Development
• RMAF — Results-based Management and Accountability Framework
• RPP — Report on Plans and Priorities
• SC — Steering Committee
• SEB — Self-Employment Benefits
• SICEAI — Softwood Industry Community Economic Adjustment Initiative
• SME — Small-and Medium-Sized Enterprise
• TEA — The Exceptional Assistant
• WD — Western Economic Diversification