COLUMBIA BASIN BUSINESS RETENTION AND EXPANSION PROJECT R EPORT ON K IMBERLEY B USINESSES W INTER 2015 The Kimberley Business Retention and Expansion project is a community-driven effort undertaken in partnership with the Kimberley and District Chamber of Commerce and the City of Kimberley focused on identifying the needs of our existing businesses. The Columbia Basin Rural Development Institute, at Selkirk College, is a regional research centre that supports informed decision-making through the provision of information, applied research and related outreach and extension support. Visit www.cbrdi.ca for more information. EXECUTIVE SUMMARY This report describes findings from a Business Retention and Expansion (BRE) survey conducted at 60 businesses in the City of Kimberley. BRE is an action-oriented and community-based approach to business and economic development. It promotes job growth by helping communities to learn about concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. KEY RESEARCH FINDINGS Select survey results are summarized below. Survey Module Company Information Local Workforce Sales Facilities and Equipment Business Climate Finding The highest number of respondents’ businesses are classified as ‘Retail and Wholesale Trade’ under the North American Industry Classification system. Over half of the companies are ‘growing’. Most businesses report being in business from 1 – 4 years. Only 23% of businesses anticipate a change in ownership. The majority of businesses have less than five employees. A little over half of the employment is full time. Over half of businesses report that their sales are increasing. Most businesses report annual sales in the $100,000 - $499,999 range. The historic sales trend at this location and in the industry is increasing. 32% of businesses report the majority of their supplies are sourced internationally. 60% of businesses own the facility in which they operate. Of those businesses that lease their facility, 61% intend to renew the current lease agreement. 57% of businesses plan to expand within three years, and about half of those planning an expansion indicate that their current site will be adequate to accommodate expansion plans. The most commonly cited constraint on business operations was finance related, with lack of skilled staff, and identifying and accessing new markets also cited. The most frequent rating of the local business climate was ‘Fair’. A lack of steady work, high taxes and resistance to change were the most frequently cited barriers to growth. Businesses would like to see retail stores and grocery stores locate in Kimberley. NEXT STEPS AND POTENTIAL ACTIONS The results of this survey can be used to inform short- and long-term planning. In addition, a number of businesses would benefit from follow-up support. Research findings suggest that the following action areas have the greatest potential to improve the business climate: Business Development The businesses operating in Kimberley have a wide range of experience, with a significant number of businesses that are relatively new. Support to businesses that are in the growing/establishing phase could be explored. A focus on specific supports to small businesses is also supported by the DRAFT - Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses research findings, as 60% of businesses report that they have less than 5 employees, and 40% report annual sales between $100,000 and $499,999. Business Climate Gaining an understanding of the factors that are attributed to a business climate most commonly rated as ‘fair’ could assist in improving the business climate. The majority of businesses forecast that the business climate will improve over the next five years. A proactive, planned approach to address concerns and issues will ensure that the business climate does improve over time. Actions in this area could include hosting business to business forums and stakeholder meetings with targeted groups to identify barriers and constraints and identify actions. Business Growth & Expansion 52% of businesses in the region report being in a growth cycle, and 57% indicate that they are planning to expand within the next three years. Half of those businesses planning to expand feel their existing site is adequate, and the majority of expansion plans are expected to occur within the community. Businesses also report that sales are increasing. This data coupled with the general optimism for the future provides a positive picture of local business growth. Actions in this area could include supporting existing businesses as they plan for local expansion/growth. Assistance could come in the form of assistance with navigating local regulations, identifying and securing new sites, and connecting businesses with resources to assist in expansion projects. This is an area where improvements could be made to have local resources approach businesses proactively to understand barriers and work collaboratively towards solutions. Economic Diversification A lack of diversification is suggested by1 a relatively high percentage (38%) of businesses engaged in the retail and wholesale trade sector. In addition, 32% of businesses indicated that they purchase their supplies from international suppliers. Increasing other sectors of the economy will assist in increasing the resilience of the City of Kimberley in the future. Actions to increase diversification could include working with local businesses to expand their customer base, identifying local suppliers for businesses, and raising awareness of small business support programs from groups such as Community Futures East Kootenay (i.e. financing, Business Basin Advisors program). Continued collaboration between government and local businesses towards a diversified economy will be key to achieving results in this area. 1 Cross-referencing the sample with the business license database could further illuminate the possible reliance on this sector. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses TABLE OF CONTENTS Executive Summary........................................................................................................ ii Key Research Findings ........................................................................................................... ii Next Steps and Potential Actions ........................................................................................... ii List of Figures ................................................................................................................. v Project Overview ...........................................................................................................6 The BRE Concept ................................................................................................................... 6 Project Objectives ................................................................................................................. 6 Research Considerations ................................................................................................7 The BRE Survey ..................................................................................................................... 7 The Data Set.......................................................................................................................... 7 Data Collection ...................................................................................................................... 7 Data Input, Analysis and Reporting ........................................................................................ 8 Research Findings ..........................................................................................................9 Company Information ........................................................................................................... 9 Local Workforce .................................................................................................................. 12 Sales ................................................................................................................................... 12 Facilities and Equipment...................................................................................................... 16 Business Climate ................................................................................................................. 20 Next Steps ................................................................................................................... 22 Potential Action Areas ......................................................................................................... 23 Appendix A: Data Tables .............................................................................................. 24 Company Information ......................................................................................................... 24 Local Workforce .................................................................................................................. 25 Sales ................................................................................................................................... 26 Facilities and Equipment...................................................................................................... 30 Business Climate ................................................................................................................. 33 Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses LIST OF FIGURES Figure 1: Industry classification ........................................................................................................... 9 Figure 2: Life cycle stage.................................................................................................................... 10 Figure 3: Length of time in business .................................................................................................. 10 Figure 4: Type of business ................................................................................................................. 11 Figure 5: Pending Ownership Change ............................................................................................... 11 Figure 6: Total number of employees ............................................................................................... 12 Figure 7: Nature of employment ....................................................................................................... 12 Figure 8: Annual sales ........................................................................................................................ 13 Figure 9: Status of market for product/service ................................................................................. 13 Figure 10: Projected sales growth in the next year ........................................................................... 14 Figure 11: Historic sales trend over last 10 years at this location ..................................................... 14 Figure 12: Historic sales trend over last 10 years at parent company .............................................. 14 Figure 13: Historic sales trend over last 10 years within the industry .............................................. 15 Figure 14: Geographic source of majority of sales ............................................................................ 15 Figure 15: Geographic source of majority of supplies ....................................................................... 16 Figure 16: Ownership status of facility .............................................................................................. 16 Figure 17: Length of time remaining on lease ................................................................................... 17 Figure 18: Plans to expand within three years .................................................................................. 17 Figure 19: Adequacy of current site to support expansion ............................................................... 18 Figure 20: Expansion to occur in community .................................................................................... 18 Figure 21: Constraints on business operations ................................................................................. 19 Figure 22: Energy efficiencies factored into business operations ..................................................... 19 Figure 23: Rating of local business climate ....................................................................................... 20 Figure 24: Forecast of the local business climate.............................................................................. 20 Figure 25: Barriers to growth in the community ............................................................................... 21 Figure 26: Potential Suppliers............................................................................................................ 21 Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses PROJECT OVERVIEW This report describes findings from a Business Retention and Expansion (BRE) survey2 conducted in the City of Kimberley during the Spring and Summer of 2013, as well as surveys of Kimberley based businesses completed as part of the 2013 report on Manufacturing and Technology Sectors. The Economic Development Officer with the City of Kimberley acted as the community lead for the project; the City contracted the Kimberley and District Chamber of Commerce to administer the survey and enter data into the BC Business Counts online database. The Columbia Basin Rural Development Institute (RDI) provided training, data analysis and report writing support. THE BRE CONCEPT BRE is an action-oriented and community-based approach to business and economic development. It promotes job growth by helping communities to learn about the concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. Ultimately, communities will have greater success in attracting new businesses if existing businesses are content with local economic conditions and community support. Business development and job creation are key factors in fostering healthy and vibrant communities— depending on the characteristics of a community’s economy, anywhere from 40 to 90 per cent of new jobs come from existing businesses. PROJECT OBJECTIVES Objectives specific to the Kimberley BRE project were as follows: 1. Identify the needs, concerns, and opportunities of existing local businesses in order that, where appropriate, local action can be taken to respond to the businesses’ needs or development opportunities; 2. Learn of the future plans of the region’s local businesses with respect to expansion, relocation and /or retention and follow-up where assistance can be provided; 3. Demonstrate the community’s pro-business attitude and develop an effective means of communication with local businesses; 4. Encourage the business community’s active involvement in economic development. 2 Short and Long BRE surveys can be downloaded from: http://cbrdi.ca/research-areas/appliedresearch/business-retention-expansion/ Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 6 RESEARCH CONSIDERATIONS THE BRE SURVEY The RDI has a licence agreement with the Economic Development Association of BC for BC Business Counts, a program that provides access to an online BRE survey, contact management, and reporting system called ExecutivePulse. Data collected as part of a comprehensive BRE survey is aligned with surveys conducted by other participants in the BC Business Counts program across the province of BC. Survey data can therefore be analyzed at a community, sub-regional, regional and provincial level. The base survey, consisting of 94 questions, includes modules for company information, the local workforce, sales, facilities and equipment, and future plans for growth or succession. Based on feedback from a BRE regional advisory group, thirteen region-specific questions were appended to the base BRE survey. The City of Kimberley and the Chamber of Commerce adapted the base survey to administer a survey of 28 questions. Some of the 28 questions included a substantial re-interpretation of the common BRE questionnaire. Those businesses interviewed as part of the Manufacturing and Technology Sectors report were asked the entire base survey and the additional region-specific questions. Only those questions compatible with the regional BRE initiative are included in this report. Data collected through this project that is not compatible with the regional BRE initiative will not be used in any future sub-regional, regional or provincial level analysis. THE DATA SET The business license database managed by the City of Kimberley was used to generate an initial set of potential research participants Invitations to participate were extended to businesses via personal phone calls by the Chamber Manager, during which time interviews were arranged. Businesses were surveyed through individual face-to-face interviews. In total 51 respondents from Kimberley participated in the modified BRE survey. The number of responses to each question varies depending on whether businesses felt comfortable sharing all of the information requested. Nine respondents were interviewed as part of the report for the Manufacturing and Technology Sectors and are included in this report. DATA COLLECTION The Chamber Manager was solely responsible for the entire survey process. This included arranging and undertaking the structured interviews which took between 1 to 1.5 hours, plus data entry. In total the process took approximately 3 hours per interview. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 7 DATA INPUT, ANALYSIS AND REPORTING Data was entered into the ExecutivePulse system by the Chamber Manager immediately following the interviews. To ensure confidentiality and data security, company-level data was only made accessible to RDI staff, the Economic Development Officer with City of Kimberley, and the Manager of the Chamber of Commerce. Quantitative data was analysed using descriptive statistics and qualitative data were analysed using the grounded theory method of generating key coding themes. Based on the results of data analysis activities, an initial set of next steps and possible actions was generated by RDI. Findings and related next steps were assembled into this report by RDI researchers in consultation with the Kimberley BRE Lead. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 8 RESEARCH FINDINGS COMPANY INFORMATION Type of Product/Service Offered Businesses interviewed represent a diverse cross-section of industries. Most common are Retail and Wholesale Trade (37% or 22 respondents), Information and Cultural Industries (13% or 8 respondents), Professional, Scientific and Technical Services (10% or 6 respondents), and Accommodation and Food Services (10% or 6 respondents). Figure 1: Industry classification Retail and Wholesale Trade 37% Information and Cultural Industries 13% Professional, Scientific and Technical Services 10% Accommodation and Food Services 10% Arts, Entertainment and Recreation 5% Manufacturing 5% Real Estate and Rental and Leasing 5% Finance and Insurance 5% Other Services 3% Health Care and Social Assistance 2% Construction 2% Educational Services 2% Administrative Support, Waste Management… 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 60 respondents Age and Life Cycle Stage Over half of respondents (52% or 31 businesses) reported that their business is in the ‘growing’ life cycle stage. Another 28% (17 businesses) indicated that their business is in the ‘maturing’ stage. 18% (11 businesses) indicated that they are in the ‘emerging’ stages, and no businesses indicated that they were declining. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 9 Figure 2: Life cycle stage Growing 52% Maturing 28% Emerging 18% No Response 2% 0% 10% 20% 30% 40% 50% 60% Note: 60 respondents Most businesses (11 respondents or 28%) reported that they have been in business for between one and four years. Significant numbers reported that they have been in business for more than 20 years (20% or 12 respondents), between 10 and 19 years (22% or 13 respondents) and between five and nine years (18% or 11 businesses). Only 12% (7 respondents) indicated they have been in business for less than one year. Figure 3: Length of time in business more than 20 years 20% 10-19 years 22% 5-9 years 18% 1-4 years 28% less than 1 year 12% 0% 5% 10% 15% 20% 25% 30% Note: 60 respondents Ownership and Management Most respondents (26 respondents or 43%) indicated that their business is classified as a corporation, while 28% (17 respondents) indicated that they are a sole proprietorship. The remainder of businesses are registered as a partnership (7 respondents), non-profit (3 respondents), other type of business (4 respondents), or limited liability partnership (1 respondent). Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 10 Figure 4: Type of business Corporation Sole Proprietorship Partnership Other Non-Profit Limited Liability Partnership No Response 43% 28% 12% 7% 5% 2% 3% 0% 10% 20% 30% 40% 50% Note: 60 respondents Succession and Business Plans 14 businesses (23%) are expecting an ownership change within the next 10 years. Figure 5: Pending Ownership Change No Response 7% Yes 23% No 70% Note: 60 respondents Of the 14 businesses that responded and reported a pending ownership change, one expects the change will happen in three or more years. 14% of respondents (2 respondents) expect that the current owner will sell or transfer the business to either a family member of non-family member. 21% (3 respondents) indicated that they might look to liquidate assets, seek a business partner to arrange success, or sell the building. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 11 LOCAL WORKFORCE Size of Workforce The 60 businesses interviewed reported a total of 329 employees. 60 % of the businesses (36 businesses) surveyed indicated that they have less than five employees and 7% (4 businesses) indicated that they have between 20 and 49 employees. No businesses reported having over 50 employees. Figure 6: Total number of employees Less than 5 60% 10 - 19 33% 20-49 7% 0% 10% 20% 30% 40% 50% 60% 70% Note: 60 respondents 53% (176) of employment positions at surveyed businesses are full-time, while 33% (110) are parttime and 13% (43) are temporary. Figure 7: Nature of employment Full Time 53% Temporary 13% Part Time 33% 0% 10% 20% 30% 40% 50% 60% Note: 60 respondents SALES Market Size and Share The highest number of respondents (24 businesses or 40%) reported annual sales between $100,000 and $499,999. The second highest number of respondents (11 businesses or 18%) reported annual sales between $1 million and $4.99 million. The lowest number (2 businesses or 3%) reported sales of under $100,000. 23% (14 businesses) of respondents did not share annual sales information. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 12 Figure 8: Annual sales Confidential/ no response 23% $1million to $4.99 million 18% $500,000 to $999,999 15% $100,000 to $499,999 40% Under $100,000 3% 0% 10% 20% 30% 40% 50% Note: 60 respondents The majority of businesses interviewed (53% or 32 businesses) indicated that the size of the market for their product or service is increasing. Another 27% (16 businesses), reported that the market is stable. Figure 9: Status of market for product/service No Response 15% Increasing 53% Stable 27% Decreasing 5% 0% 10% 20% 30% 40% 50% 60% Note: 60 respondents Growth 28% of respondents (17 businesses) expect to see low growth in sales in the realm of 1 – 9%. Moderate growth in sales of 10-24% over the next year is projected by 17% of respondents (10 businesses). Strong growth is expected by 8% (5 businesses) in the realm of 50 – 99% and 10% of businesses (6 businesses) expect to see 100% growth or more next year. 5% (3 businesses) of respondents expect their sales to remain stagnant, while a further 2% (1 business) expects sales to decline. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 13 Figure 10: Projected sales growth in the next year Confidential/ no response 17% 100% or more 10% 50-99% 8% 25-49% 13% 10-24% 17% 1-9% 28% 0% 5% Declining 2% 0% 5% 10% 15% 20% 25% 30% Note: 60 respondents The majority of responses (58% or 35 businesses) indicated that sales at their business have increased over time, 18% (11 businesses) indicated that sales have remained relatively stable and 7% (4 businesses) reported that sales have declined. Figure 11: Historic sales trend over last 10 years at this location Increasing 58% Staying the same 18% Decreasing 7% No Response 17% 0% 10% 20% 30% 40% 50% 60% 70% Note: 60 respondents Data indicates that the sales trend at parent companies approximates the sales trends at this location. 13% or 8 businesses reported that sales at their parent company have historically increased and only 3% (2 businesses) reported that they have declined, while 2% or 1 business reported stable historic sales trends. Figure 12: Historic sales trend over last 10 years at parent company Not Applicable/No response Increasing Declining Staying the same 82% 13% 3% 2% 0% 20% 40% 60% 80% 100% Note: 60 respondents Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 14 Data indicates that the sales trend within respondents’ respective industries has roughly followed the sales trend reported for parent company’s. 45% percent of respodents (27 businesses) reported that sales within their industry have been increasing while 10% (6 businesses) reported that they have been decreasing. Figure 13: Historic sales trend over last 10 years within the industry Not Applicable/No response Increasing Staying the same Declining 33% 45% 12% 10% 0% 10% 20% 30% 40% 50% Note: 60 respondents Source of Sales A majority of respondents (55%) indicated that over 50% of their sales are to customers within the community or region. 7% indicated that over 50% of their sales are within the country. Fewer respondents (5%, 3%, 2%) indicated that the majority of their sales are to provincial, US or international markets, respectively. Figure 14: Geographic source of majority of sales Less than 50% or Not Reported Local International Provincial National United States 28% 55% 2% 5% 7% 3% 0% 10% 20% 30% 40% 50% 60% Note: 60 respondents 17% of respondents (10 businesses) interviewed reported that they purchase a majority of their supplies from local sources. 32% (19 businesses) indicated that the majority of their supplies come from international businesses. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 15 Figure 15: Geographic source of majority of supplies Less than 50% or Not Reported 40% Local 17% International 32% Provincial 5% National 3% United States 3% 0% 10% 20% 30% 40% 50% Note: 60 respondents FACILITIES AND EQUIPMENT Ownership Figure 16: Ownership status of facility No Response 2% Leased 38% Owned 60% 60% of respondents (36 businesses) own the facility in which they operate and 38% (23 businesses) lease it. Note: 60 respondents Of the 23 businesses that lease their facility, 26% have less than a year remaining on their lease and 13% have between 3 and 5 years remaining. The majority of respondents that lease their facility (61% or 14 businesses) intend to renew their current lease agreement. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 16 Figure 17: Length of time remaining on lease No Response 30% More than 5 yrs 17% 3-5 yrs 13% 1-2 Years 13% Less than 1 yr 26% 0% 5% 10% 15% 20% 25% 30% 35% Note: 23 respondents Facility Expansion Figure 18: Plans to expand within three years No Response 3% 57% of respondents (34 businesses) plan to expand within three years, 40% (24 businesses) do not. No 40% Yes 57% Note: 60 respondents Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 17 Figure 19: Adequacy of current site to support expansion No Response 9% Of the 34 businesses planning expansion, 50% (17 businesses) reported that their current site will be adequate. Notably however, 41% (14 businesses) reported that they will have to look for a new site to meet their planned expansion needs. No 41% Yes 50% Note: 34 respondents Most respondents (85% or 29 businesses) indicated that expansion will occur within the community. Figure 20: Expansion to occur in community Yes 85% No 12% No Response 3% 0% 20% 40% 60% 80% 100% Note: 34 respondents Business Operations The most commonly cited constraint on business operations was finance related (14% or 13 businesses). A lack of skilled staff (12% or 11 businesses) and identifying and accessing new markets (11% or 10 businesses) were both frequently cited. All “other” responses are found in Appendix A. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 18 Figure 21: Constraints on business operations Finance 14% Other 12% Lack of skilled staff 12% Identifying and accessing new markets 11% Lack of suitable premises 10% Broadband access 9% Local regulations (zoning) 7% Energy costs 7% Energy reliability 4% Problems with Development Approvals 4% Transport/freight 4% No Response Warehousing Roads 3% 2% 1% 0% 2% 4% 6% 8% 10% 12% 14% 16% Note: 60 respondents Figure 22: Energy efficiencies factored into business operations No Response 7% 50% of respondents (30 businesses) indicated that they do factor energy efficiency improvements into their business operations. Yes 50% No 43% Note: 60 respondents Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 19 BUSINESS CLIMATE Quality of Business Climate The majority of respondents rated the overall business climate as fair (48% or 29 businesses). Figure 23: Rating of local business climate Poor 8% Fair 48% Good 28% Excellent 3% No Response 12% 0% 10% 20% 30% 40% 50% 60% Note: 60 respondents 68% of businesses (41 businesses) forecasted that the local business climate will be better five years from today. Figure 24: Forecast of the local business climate Will be better 68% No opinion 22% No change 8% Will be worse 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 60 respondents Business Growth 72% of respondents (43 businesses) indicated that there are barriers to growth. The highest number of respondents (16% or 7 businesses) stated that a lack of steady work is an important barrier to growing the community’s economy. Other commonly cited barriers include high taxes and resistance to change (14% or 6 businesses). Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 20 Figure 25: Barriers to growth in the community Lack of steady work 16% High taxes 14% Resistance to change 14% Lack of a major industry 9% Low population 9% City council 7% Lack of support for modernization 7% Small market 5% No Response 5% Low household incomes 5% Telecommunications infrastructure 2% No anchor industry for local jobs 2% Cost of living 2% Out of the way location 2% Aging population 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Note: 43 respondents 42% of respondents (25 businesses) indicated that there are suppliers that could locate in the region. Retail stores was most commonly cited by 39% of respondents (9 businesses), with grocery stores being mentioned by 22% (5 businesses). Figure 26: Potential Suppliers Retail stores 39% Grocery stores 22% Data centre 13% Electrical suppliers 9% Call centre 4% Financial services 4% Technical and Customer support 4% No Response 4% 0% 10% 20% 30% 40% 50% Note: 25 respondents Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 21 NEXT STEPS The results of this survey can be used by economic development organizations in the City of Kimberley to inform short- and long-term business retention and expansion action planning. Many BRE programs ensure that follow-up actions occur as soon as possible following completion of the survey stage. This approach builds credibility, a sense of success and momentum to carry out longterm actions. Successful BRE programs pick an initial set of short-term actions that:  can be completed in 6 months or less;  are highly visible to businesses and the community as a whole; and  have the potential for considerable impact with minimal input (i.e., the “low hanging fruit”). Many BRE actions also lead to long-term programs (e.g., a ‘Buy Local’ program), or ongoing plans and policies. Patience and a commitment over the long-term are critical in determining the success of these initiatives. For this reason, BRE should be thought of, and implemented as, an ongoing process as opposed to a one-time project. BRE results can form the backbone of a community’s economic development strategy and, in some cases they are integrated into Official Community Plans (OCPs). Some communities form committees or action groups around the themes or action areas identified in the BRE report to ensure success in implementation. The following steps could further and support links to planning and action: 1. Continually communicate (through press, presentations, electronic media, etc.) with the business community regarding actions and be clear that the actions are tied to the BRE process. 2. Establish a task force or steering committee to continue building on the momentum of the BRE report and ensure actions and next steps are taken and kept on track. Include followup discussions with individual businesses (particularly to address red and green-flags). Consider using the “Business Walk” survey as a tool to connect with businesses annually. 3. Host a business stakeholder forum to present findings, discuss common issues and potential solutions. 4. Host a facilitated action planning session with economic development stakeholders and industry representatives. 5. Based on results from the forums and action planning session, finalize priority actions, develop related action plans, update existing economic development plans and develop relationships with a broader network of support providers (at regional, provincial and national scales) to support implementation. 6. Establish a monitoring and evaluation program to assess the impact of implementation efforts. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 22 POTENTIAL ACTION AREAS Business Development The businesses operating in Kimberley have a wide range of experience, with a significant number of businesses that are relatively new. Support to businesses that are in the growing/establishing phase could be explored. A focus on specific supports to small businesses is also supported by the research findings, as 60% of businesses report that they have less than 5 employees, and 40% report annual sales between $100,000 and $499,999. Business Climate Gaining an understanding of the factors that are attributed to a business climate most commonly rated as ‘fair’ could assist in improving the business climate. The majority of businesses forecast that the business climate will improve over the next five years. A proactive, planned approach to address concerns and issues will ensure that the business climate does improve over time. Actions in this area could include hosting business to business forums and stakeholder meetings with targeted groups to identify barriers and constraints and identify actions. Business Growth & Expansion 52% of businesses in the region report being a growth cycle, and 57% indicate that they are planning to expand within the next three years. Half of those businesses planning to expand feel their existing site is adequate, and the majority of expansion plans are expected to occur within the community. Businesses also report that sales are increasing. This data coupled with the general optimism for the future provides a positive picture of local business growth. Actions in this area could include supporting existing businesses as they plan for local expansion/growth. Assistance could come in the form of assistance with navigating local regulations, identifying and securing new sites, and connecting businesses with resources to assist in expansion projects. This is an area where improvements could be made to have local resources approach businesses proactively to understand barriers and work collaboratively towards solutions. Economic Diversification A lack of diversification is suggested by3 a relatively high percentage (38%) of businesses engaged in the retail and wholesale trade sector. In addition, 32% of businesses indicated that they purchase their supplies from international suppliers. Increasing other sectors of the economy will assist in increasing the resilience of the City of Kimberley in the future. Actions to increase diversification could include working with local businesses to expand their customer base, identifying local suppliers for businesses, and raising awareness of small business support programs from groups such as Community Futures East Kootenay (i.e. financing, Business Basin Advisors program). Continued collaboration between government and local businesses towards a diversified economy will be key to achieving results in this area. 3 Cross-referencing the sample with the business license database could further illuminate the possible reliance on this sector. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 23 APPENDIX A: DATA TABLES COMPANY INFORMATION NAICS Code Count Percent 56 1 2% 61 23 62 81 52 53 31-33 71 72 1 1 1 2 3 3 3 3 6 2% 2% 2% 3% 5% 5% 5% 5% 10% 54 6 10% 51 41-45 8 22 60 13% 37% 100% Figure 2: Life cycle stage No Response Emerging Maturing Growing Total Survey Respondents: 60 Count 1 11 17 31 60 Percent 2% 18% 28% 52% 100% Figure 3: Length of time in business less than 1 year 1-4 years 5-9 years 10-19 years more than 20 years Total Count 7 17 11 13 12 60 Percent 12% 28% 18% 22% 20% 100% Figure 1:Industry Classification Administrative Support, Waste Management and Remediation Educational Services Construction Health Care and Social Assistance Other Services Finance and Insurance Real Estate and Rental and Leasing Manufacturing Arts, Entertainment and Recreation Accommodation and Food Services Professional, Scientific and Technical Services Information and Cultural Industries Retail and Wholesale Trade Total Survey Respondents: 60 Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 24 Survey Respondents: 60 Figure 4: Type of business No Response Limited Liability Partnership Non-Profit Other Partnership Sole Proprietorship Corporation Total Survey Respondents: 60 Count 2 1 3 4 7 17 26 60 Percent 3% 2% 5% 7% 12% 28% 43% 100% Figure 5: Pending ownership change No Response Yes No Total Survey Respondents: 60 Count 4 14 42 60 Percent 7% 23% 70% 100% LOCAL WORKFORCE Figure 6: Total number of employees 20-49 10 - 19 Less than 5 Total Survey Respondents: 60 Total Employees: 329.0 Figure 7: Nature of Employment Part Time Temporary Full Time Total Survey Respondents: 60 Count Percent 4 20 36 60 7% 33% 60% 100% Count Percent 110 43 176 329 33% 13% 53% 100% Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 25 Figure 7b: Number of FullTime Employees 20-49 0 or no answer 10-19 Less than 5 Total Survey Respondents: 60 Count Percent 2 3 8 47 60 3% 5% 13% 78% 100% Count Percent 6 7 47 60 10% 12% 78% 100% Count Percent 2 8 50 60 3% 13% 83% 100% Figure 8: Annual Sales Under $100,000 $100,000 to $499,999 $500,000 to $999,999 $1million to $4.99 million Confidential/ no response Total Survey Respondents: 60 Count 2 24 9 11 14 60 Percent 3% 40% 15% 18% 23% 100% Figure 9: Status of Market Decreasing Stable Increasing No Response Count 3 16 32 9 Percent 5% 27% 53% 15% Figure 7c: Number of Part-Time Employees 0 or no answer 10-19 Less than 5 Total Survey Respondents: 60 Figure 7d: Number of Temporary Employees 19-Oct 0 or no answer Less than 5 Total Survey Respondents: 60 SALES Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 26 Total Survey Respondents: 60 Figure 10: Projected Sales Growth in Upcoming Year Declining 0% 1-9% 10-24% 25-49% 50-99% 100% or more Confidential/ no response Total Survey Respondents: 60 Figure 11: Historical Sales Trend (at this Location) No Response Decreasing Staying the same Increasing Total Survey Respondents: 60 Figure 12: Historical Sales Trend (at the Parent Company) Staying the same Declining Increasing Not Applicable/No response Total Survey Respondents: 60 Figure 13: Historical Sales Trend (within the Industry) Declining Staying the same Increasing Not Applicable/No response Total 60 100% Count Percent 1 3 17 10 8 5 6 10 60 2% 5% 28% 17% 13% 8% 10% 17% 100% Count Percent 10 4 11 35 60 17% 7% 18% 58% 100% Count Percent 1 2 8 2% 3% 13% 49 82% 60 100% Count Percent 6 7 27 10% 12% 45% 20 33% 60 100% Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 27 Survey Respondents: 60 Figure 14: Geographic Source of Majority of Sales United States National Provincial International Local Less than 50% or Not Reported Total Survey Respondents: 60 Figure 14b: Source of Sales (Local/Regional) 100% under 50% 0% or no answer 50-99% Total Survey Respondents: 60 Figure 14c: Source of Sales (Provincial) 50-99% 0% or no answer under 50% Total Survey Respondents: 60 Figure 14d: Source of Sales (National) 100% 50-99% under 50% 0% or no answer Total Survey Respondents: 60 Figure 14e: Source of Sales (United States) 50-99% under 50% Count Percent 2 4 3 1 33 3% 7% 5% 2% 55% 17 28% 60 100% Count Percent 8 13 14 25 60 13% 22% 23% 42% 100% Count Percent 3 23 34 60 5% 38% 57% 100% Count Percent 1 3 24 32 60 2% 5% 40% 53% 100% Count Percent 2 19 3% 32% Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 28 0% or no answer Total Survey Respondents: 60 Figure 14f: Source of Sales (International) 50-99% under 50% 0% or no answer Total Survey Respondents: 60 Figure 15: Source of Majority of Supplies United States National Provincial International Local Less than 50% or Not Reported Total Survey Respondents: 60 Figure 15b: Source of Supplies (Local/Regional) under 50% 50-99% 0% or no answer Total Survey Respondents: 60 Figure 15c: Source of Supplies (Provincial) 50-99% under 50% 0% or no answer Total Survey Respondents: 60 Figure 15d: Source of Supplies (National) 50-99% under 50% 39 60 65% 100% Count Percent 1 15 44 60 2% 25% 73% 100% Count Percent 2 2 3 19 10 3% 3% 5% 32% 17% 24 40% 60 100% Count Percent 6 10 44 60 10% 17% 73% 100% Count Percent 3 11 46 60 5% 18% 77% 100% Count Percent 2 12 3% 20% Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 29 0% or no answer Total Survey Respondents: 60 Figure 15e: Source of Supplies (United States) 50-99% under 50% 0% or no answer Total Survey Respondents: 60 Figure 15f: Source of Supplies (International) under 50% 100% 50-99% 0% or no answer Total Survey Respondents: 60 46 60 77% 100% Count Percent 2 6 52 60 3% 10% 87% 100% Count Percent 4 7 12 37 60 7% 12% 20% 62% 100% FACILITIES AND EQUIPMENT Figure 16: Ownership Status No Response Leased Owned Total Survey Respondents: 60 Count Percent 1 23 36 60 2% 38% 60% 100% Figure 17: Length of Time Remaining on Count Lease Less than 1 yr 6 1-2 Years 3 3-5 yrs 3 More than 5 yrs 4 No Response 7 Total 23 businesses that lease: 23.0 Percent 26% 13% 13% 17% 30% 100% Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 30 Figure 17b: Planning to Count renew current lease No 4 No Response 5 Yes 14 Total 23 Businesses that lease: 23.0 Figure 18: Expansion Plans (Does the company plan to expand in the next three years?) No Response No Yes Total Survey Respondents: 60 Percent 17% 22% 61% 100% Count Percent 2 24 34 60 3% 40% 57% 100% Figure 19: Adequacy of Current Site for Count Percent Expansion No Response 3 9% No 14 41% Yes 17 50% Total 34 100% Respondents planning to expand: 34 Figure 20: Does the company plan to expand in the next three years?: Count Percent Will it be in this community? No Response 1 3% No 4 12% Yes 29 85% Total 34 100% Survey Respondents answering Yes to "Does the company plan to expand in the next three years?" : 34 Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 31 Figure 21: Constraints on business operations Roads Warehousing No Response Transport/freight Problems with Development Approvals Energy reliability Energy costs Local regulations (zoning) Broadband access Lack of suitable premises Count Percent 1 2 3 4 1% 2% 3% 4% 4 4% 4 6 4% 7% 6 7% 8 9% 9 10% 10 11% 11 11 13 92 12% 12% 14% 100% Count Percent 1 9% 1 9% Gerry Sorenson Way (Ski Hill Road) 1 9% Lack of (local) business support 1 9% No interest in managing employees (future growth) 1 9% Property taxes for businesses 1 9% Identifying and accessing new markets Lack of skilled staff Other Finance Total Respondents:60 Figure 21b: What, if any, are the major constraints on business operations? (Please check all that are applicable): Other (please specify) City removing snow Communications between city and us. Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 32 Provincial Liquor licensing 1 9% 1 9% 1 9% 1 9% the economy 1 Total 11 Survey Respondents "Other": 11 9% 100% Small and Home Business Training Taxation sourcing of material and packaging lack of Canadian packaging distributors. Figure 22: Energy efficiencies factored into business operations No Response No Yes Total Survey Respondents: 60 Count Percent 4 26 30 60 7% 43% 50% 100% BUSINESS CLIMATE Figure 23: Please rate the local business climate No Response Excellent Good Fair Poor Total Survey Respondents: 60 Figure 24: Business Climate 5 Years from Today Will be worse No change Count Percent 7 2 17 29 5 60 Count 12% 3% 28% 48% 8% 100% Percent 1 5 2% 8% Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 33 No opinion Will be better Total Survey Respondents: 60 Figure 25: Barriers to Growth in Community Aging population Out of the way location Cost of living No anchor industry for local jobs 13 41 60 Count Telecommunications infrastructure Low household incomes No Response Small market Lack of support for modernization City council Low population Lack of a major industry Resistance to change High taxes Lack of steady work Total Yes Survey Respondents: 43 Figure 25b: Barriers to Growth in Community No Response No Yes Total Survey Respondents: 60 Figure 26: Are there suppliers you think could locate in this region? No 22% 68% 100% Percent 1 1 1 2% 2% 2% 1 2% 1 2% 2 2 2 5% 5% 5% 3 7% 3 4 4 6 6 7 44 7% 9% 9% 14% 14% 16% 100% Count Percent 6 11 43 60 Count 10% 18% 72% 100% Percent 14 23% Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 34 No Response Yes Total Survey Respondents: 60 21 25 60 Figure 26b: Are there suppliers you think could locate in this Count region?: If Yes, please list No Response 1 Technical and Customer 1 support Financial services 1 Call centre 1 Electrical suppliers 2 Data centre 3 Grocery stores 5 Retail stores 9 Total 23 Yes Survey Respondents: 25 35% 42% 100% Percent 4% 4% 4% 4% 9% 13% 22% 39% 100% Columbia Basin Business Retention and Expansion Project: Report on Kimberley Businesses 35