Slide 1:Entrepreneurship Facilitators Webinar Session

Today we will provide you with information on the Entrepreneurship Facilitators initiative and outline the Government’s broader expectations. We will also provide you with details on the Grant funding process that was released on 13October 2016.

The Department has appointed Maddocks as the external Probity Adviser. The role of the Probity Adviser is to advise on the probity and integrity of the process. The role includes developing an overarching Probity Plan that can be applied to the process, providing advice on probity issues, conducting appropriate probity training, and advising on relevant security arrangements.

The Probity Adviser will observe and monitor, but will play no role in the assessment process.

The Department has a complaints handling process in place for this Entrepreneurship Facilitators funding application process. Persons with any concern about the probity or integrity of the Entrepreneurship Facilitators funding application process can raise their concerns with the Department’s internal legal adviser. Where appropriate, complaints will be referred to the external Probity Adviser.

We recognise that you will have questions, and there will be an opportunity for you to raise these at today’s session. I propose that we hold questions until the end of the session. We will answer as many of your questions as possible, but there may be some that we will need to take on notice and come back to you with a response. Responses will be published on the Employment Services Procurement Information website.

If following today’s session you find you have additional questions, you may send them by email to the Employment Services Purchasing Hotline.

A slide at the end of today’s presentation has the contact details for both the Employment Services Procurement Information website and the Employment Services Purchasing Hotline. The addresses are also set out in the Grant Guidelines under ‘Contact Details’.

A copy of the PowerPoint slides used in this presentation will also be available on the Department’s web site.

Slide 2:Overview

Today we will be covering:

•Background to the measure

•Entrepreneurship Facilitators in more detail

•Target clients

•Locations

•Eligibility to apply

•Funding arrangements

•Probity and Purchasing arrangements

•Application and selection Process

Slide 3:Background to Entrepreneurship Facilitator Measure

Background

The Encouraging Entrepreneurship and Self Employment measures were announced as part of the broader Youth Employment Package in the 2016–17 Budget.

Entrepreneurship Facilitators are one of these measures.

The Entrepreneurship Facilitator contract is for the period from December 2016 to 30 June 2020. The contract starts once the Funding Agreements is signed (this is intended to occur in December)

Slide 4:Entrepreneurship Facilitator Objectives

The Australian Government is committed to encouraging entrepreneurship and self-employment among young people.

These are powerful options for overcoming unemployment, however, only a small number of job seekers pursue these pathways. Research shows that many young job seekers have business ideas but lack the capacity and support to develop these ideas into a successful business.

They are often confronted by barriers such as, lack of business training and access to finance, lack of business networks and an inability to explore and select sustainable business ideas.

The objective of Entrepreneurship Facilitators is to:

•Promote entrepreneurship and self-employment to young people in identified regions.

•Encourage young people to develop new business ideas

•Assist potential young entrepreneurs in accessing assistance to support and establish their own business

•Provide linkages into existing programs, including, NEIS, business incubators and the Entrepreneurs Program

Slide 5:Entrepreneurship Facilitator Scope

Applicants should outline their experience, expertise and achievements in:

•providing business advice (individuals with personal experience as an entrepreneur or small business operator are highly desirable)

•building rapport with clients to gain an understanding of their needs and provide appropriate support

•engaging with the community, and

•developing and maintaining networks with relevant organisations.

Applicants are encouraged to be innovative and should outline the services they propose to deliver in their Application. Without seeking to limit innovative ideas, this may include approaches to:

•encouraging clients to think about starting their own business

•promoting the Services to clients through various channels such as workshops, presentations, social media posts, jobs fairs and local community meetings

•linking with organisations relevant to entrepreneurship and small business

•providing mentoring support, or assisting clients to access local mentors, business partners, office space, equipment and ongoing business training, and

•working closely with government and non-government services including in relation to regional grant funding, financial services, training institutions with business courses, accelerator and incubator services, youth organisations and employment service providers.

Applicants may apply to deliver Services in one, two or all three of the identified locations.

Slide 6:Target Clients

The priority target audience is young Australians aged 18–24, including those not in education, employment or training.

Entrepreneurship Facilitators must actively seek out and assist this priority target audience.

However, Facilitators will also work with People of all ages and backgrounds including:

•Indigenous people

•Redundant Workers

•Refugees

•CALD

Slide 7:Locations

An Entrepreneurship Facilitator will be appointed in three locations.

These areas have been selected based on locations with very high youth unemployment (over 15 per cent), and a lower take up of youth self-employment Activities.

Additional entrepreneur and business support services available in each location were also considered.

The Locations are:

•Cairns (Queensland)

•Hunter, including Newcastle (New South Wales)

•Launceston and North East Tasmania.

Entrepreneurship Facilitators will be required to deliver their Services in these Locations.

Maps of each location are provided in the next three slides.

Slide 8:Cairns—Queensland

The slide shows a map of the Cairns Employment Region identifying the Cairns area as:

  • From Cape Tribulation in the north to Ingham in the south and west towards Conjuboy, then back to Cape Tribulation.

Slide 9:Hunter (including Newcastle)

The slide shows a map of the Hunter Employment Region and identifies the Hunter (including Newcastle) area broadly as follows:

  • North east from Lake Macquarie up the coast to Port Stephens, north west to Glenrock, due west towards Cassilis then south east back to Lake Macquarie.

Slide 10:Launceston and North East Tasmania

The slide shows a map of the Launceston and North East Tasmania Employment Region and identifies theLaunceston and North East Tasmania area broadly as follows:

  • Launceston then north along the Tamar river to the coast, east across the north coast of Tasmania, the south along the east coast of Tasmania until till Bicheno, south-west towards Oatlands, then west towards the Cradle Mountain–Lake St Clair national Park, then north-east to the Tamar River and back to Launceston.

Slide 11:Who is Eligible to Apply?

Applicants must have a current and valid Australian Business Number (ABN).

Individuals, and non-government organisations, including for-profit businesses are eligible to apply.

Commonwealth and state government departments are not eligible. Group applicants and subcontractors arrangements are not eligible under the Entrepreneurship Facilitators purchasing arrangements.

Australian, state and territory government departments, agencies, employees or agents are excluded from applying for funding under these Grant Guidelines.

Slide 12:Police and Working with Children and Other Vulnerable Groups checks

Facilitators will be expected to engage with schools and young people, under the age of 18.

Consequently, they will be required to undertake a police check and a Working with vulnerable people check and to comply with any other conditions in relation to the person’s participation in the Services, as specified in governing working with children legislation.

Applicants will be required under the Funding Agreement to ensure that they, and their agents, comply with the Australian Privacy Principles.

Slide 13:Linkages with Employment Programs

One of the objectives of the program is to provide linkages to existing programs.

jobactive

jobactive is the Government’s primary employment services program. It connects job seekers with employers and is delivered by a network of jobactive providers in over 1700 locations across Australia.

Job seekers can get help from a jobactive provider to get and keep a job. jobactive providers have the flexibility to tailor their services to a job seeker’s needs.

New Enterprise Incentive Scheme (NEIS)

NEIS assists eligible job seekers to start and run their own small businesses by providing accredited small business training, business advice and mentoring for up to 52 weeks and, if eligible, income support for up to 39 weeks.

The Entrepreneurship Facilitator will need to familiarise themselves with NEIS services and the NEIS providers located in the specific location and surrounding regions and where appropriate assist clients into NEIS training.

The number of NEIS places available nationally has increased to 8600, as part of the broader Entrepreneurship and Self-Employment measures. These places are supported by the broadening of the NEIS eligibility rules to allow job seekers not on income support and not in education, training or employment to access NEIS.

Another NEIS related feature of the Entrepreneurship and Self-Employment measure is the establishment of two week ‘Exploring Being My Own Boss’ workshops that will engage young job seekers to explore self-employment and entrepreneurship as an alternative pathway to employment. Workshops will be delivered by existing NEIS providers.

Entrepreneurship Facilitators will be expected to promote the additional places available under NEIS as well as the two week workshops to clients as part of their Engagement and Marketing Strategy.

Entrepreneurship Facilitators are expected to engage with jobactive providers in their location.

Slide 14:Engagement and Marketing Strategy

Initial Engagement and Marketing Strategy

Successful Entrepreneurship Facilitators will be required to provide an Engagement and Marketing Strategy to be submitted as soon as possible after the commencement of the Funding Agreement. This strategy will be for the period up to 30 June 2017.

Applicants should note that it is expected that information provided in their responses to the selection criteria will form the basis of their initial Engagement and Marketing Strategy.

Revised Engagement and Marketing Strategy

Entrepreneurship Facilitators will be required to submit updated Engagement and Marketing Strategies for the periods 1 July 2017 to 30 June 2018, 1 July 2018 to 30 June 2019 and 1 July 2019 to 30 June 2020. It is required that updated draft Engagement and Marketing Strategies must be submitted one month prior to the period they cover to allow for Departmental approval.

Slide 15:Purpose of Engagement and Marketing Strategy

The Engagement and Marketing Strategy must address what Services the Entrepreneurship Facilitator will deliver. The Strategy should include, but is not limited to the ones listed here.

•The engagement with clients is about providing individualised and tailored information and advice to clients about starting up a business. It can include facilitating meetings to provide information and advice to address individual needs on starting and running their own business. It can also involve the provision of ongoing mentoring assistance and advice, directly or through a mentor network, as well as referring clients to appropriate services.

•Community engagement would cover the marketing of information and advice about entrepreneurships and starting a business to clients in the particular region. Strategies could include direct marketing to youth organisations, schools and universities; social media, and promotional activities.

•Linking with organisations relevant to entrepreneurship or starting a business aims to provide a connection for clients’ to access other services where it would be beneficial to starting their business. This would include understanding what services are relevant to clients, particularly local services; knowing what state and territory government and non-government funding is available and assisting with application processes, and developing contacts with organisations such as accelerator and incubator Services, youth organisations, employment services providers and New Enterprise Incentive Scheme providers.

Slide 16:Funding per Entrepreneurship Facilitator

Payment under the Funding Agreement will be made as a combination of upfront payments for marketing and engagement exercises and quarterly instalments for salary and office space allowance.

The first upfront payment will be made available on the day that the Funding Agreement is signed and combines marketing and engagement money with the first instalment of salary and office space allowance, with subsequent quarterly payments made following the receipt of an approved milestone report.

Funding must be expended in accordance with the Funding Agreement and only for the purposes intended. This includes funding to pay for:

•facilitator salaries

•office space, equipment, utilities and car hire

•travel expenses associated with conducting meetings with mentors, business partners, clients and hosting information sessions and workshops

•client and community engagement services in the targeted location

•promotional services and information sessions

•travel expenses associated with meetings, including engagements in the Department’s National Office, Canberra

•Capital items or assets totalling not in excess of $5,000 each financial year.

Slide 17:Reporting Requirements

Entrepreneurship Facilitators - All payment amounts are GST exclusive.

The signing amount of $155,000 is to cover all initial costs:

•$66,000 to cover the Facilitator’s salary, office space, car lease and any other associated set-up costs, with the remaining amount to be used for Engagement and Marketing Services.

In subsequent years Facilitators will receive a one off annual amount of $48,000 upon the Department approving that financial years’ Engagement and Marketing Strategy.

Milestone Reports must be submitted quarterly:

•March, June, September, December 2017

•March, June, September, December 2018

•March, June, September, December 2019

•March, June, 2020.

Entrepreneurship Facilitators will need to satisfy requirements under the Funding Agreement, including specified milestone reporting requirements for each period before receiving the next funding instalment milestone reporting requirements. Entrepreneurship Facilitators will need to submit a tax invoice to the Department to claim each instalment.

Audited financial statements will also be required at the end of each financial year, that is 30 June 2017, 2018, 2019 and 2020.

Slide 18:Milestone Reports

Entrepreneurship Facilitators must provide the Department with a milestone report, on or before each of the dates specified in section 2. 7 of the Grant Guidelines to the Department’s satisfaction.

Each Entrepreneurship Facilitator’s performance will be assessed against matters such as:

•progress and achievements in implementing the Engagement and Marketing Strategy

•three ‘success’ stories which include outcomes of a group activity, newly established relationships with support groups, individual client success, (etc. ).

•specific requirements set out in the approved Funding Agreement

Slide 19:Evaluation

In addition to monitoring an Entrepreneurship Facilitator’s performance under the Funding Agreement, the Department will conduct an evaluation of the Entrepreneurship Facilitator measure to determine the extent to which Entrepreneurship Facilitators have achieved the objectives of the measure.

The Department will work in partnership with Entrepreneurship Facilitators to capture relevant qualitative and quantitative data.

Slide 20:Draft Funding Agreement

The Department has published the draft Funding Agreement on the Department’s website.

Applicants who intend to apply for funding to deliver Entrepreneurship Facilitator services are strongly encouraged to review the draft Funding Agreement as part of preparing their Application.

Applicants should note that the content of their responses to the selection criteria will form part of their obligations under the Funding Agreement.

The Department reserves the right to make changes to the draft Funding Agreement in the period between its publication and the execution of final Funding Agreements.

Slide 21:Entrepreneurship Facilitators – Probity and Purchasing Arrangements

Good morning/afternoon.

My name is [name of presenter] and I will now talk about the Entrepreneurship Facilitators grants probity and purchasing arrangements.

Slide 22:Grant Application Process - Overview

In this part of the session I will cover:

•the objectives of the grant application process, including factors that will be taken into account when assessing applications

•probity principles

•selection criteria

•some aspects of electronic lodgement, and

•financial viability and other checks.

You can find detailed explanations and further information on these topics in Chapters 3 to 7 of the Grant Guidelines.

Slide 23:Purchasing Objectives

The Department will offer grants to eligible applicants to help connect young people to business training, finance and the networks they need to develop their ideas into successful businesses.

There are seven key principles for grants administration, including achieving value with relevant money, robust planning and design, and probity and transparency.

When approving a grant, the key consideration for the Department will be achieving value with relevant money.

Decisions made by the Department are not appealable. Unsuccessful Applicants can lodge a complaint about the process, but not that their application should have been considered more favourably against the published assessment criteria.

Slide 24:Probity Principles

The Department of Employment is committed to ensuring that the Entrepreneurship Facilitators grant process is conducted in a fair and transparent manner. In light of this, the key probity principles for purchasing are:

•fairness and impartiality

•consistency and transparency

•encouraging competition and participation

•identifying and managing conflicts of interest

•security and confidentiality

•compliance with relevant legislative obligations and the Commonwealth Grant Rules and Guidelines, and