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 13 October 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

1

• 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)

2

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

3

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.

4

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

5

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.

6

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.

7

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.

8

Slide 10: Launceston and North East Tasmania

The slide shows a map of the Launceston and North East Tasmania Employment Region and identifies the Launceston 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.

9

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.

10

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.

11

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.

12

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.

13

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.

14

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.

15

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.

16

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

17

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.

18

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.

19

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.

20

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.

21

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• establishing and maintaining a clear audit trail.

22

Slide 25: Application and Selection Process

Now we will move on to the application and selection process.

There are four selection criteria that applicants will need to address. Each criterion has a weighting and responses to each should come within specified character limits.

Applicants may submit three different applications, one for each identified location, if appropriate.

The selection criteria can be found at Section 3. 2 of the Grant Guidelines.

23

Slide 26: Selection Criteria 1

Selection Criterion 1 requires an applicant to describe its proposal to deliver Entrepreneurship Facilitator Services.

In preparing a response to this criterion, an applicant should address:

• How it intends to deliver the Entrepreneurship Facilitator Services, including:o engaging with clientso informing and advising clientso engaging with the community to encourage self-employment

• How it will market Entrepreneurship Facilitator Services in the community.• How its experience and previous successes demonstrate its ability to deliver

this service.• How it intends to spend the budget and provide value for money.

Responses that include innovative ways to use technologies, social media or other options that appeal to and attract young people will be highly regarded.

This criterion carries a weighting of 30 per cent and is limited to 8000 characters.

24

Slide 27: Selection Criteria 2

Selection Criterion 2 requires an applicant to demonstrate its knowledge of and or achievements as an entrepreneur or small business person.

In preparing a response to this criterion, an applicant should demonstrate:

• Knowledge and, where applicable, achievements in:o establishing small businesseso development and assessment of business planso identification of small business support services, including financial

supporto providing sound business advice and/or access to suitable mentorso understanding a range of client needs

Responses that demonstrate experience in providing (or having the capability to provide) information and advice about entrepreneurship will be highly regarded.

Responses that demonstrate innovative approaches in relation to young people will also be highly regarded.

This criterion carries a weighting of 30 per cent and is limited to 8000 characters.

25

Slide 28: Selection Criteria 3

Selection Criterion 3 requires an applicant to demonstrate its knowledge of local and surrounding areas and the capacity to leverage community partnerships and resources to support clients.

In preparing a response to this criterion, an applicant should demonstrate knowledge of the region, including:

• Labour market and small business knowledge• Understanding of the issues facing young people• How it would partner with other organisations or networks to support its

clients• How it would link with government programs, financial and insurance

services and training institutions.

This criterion carries a weight of 30 per cent and is limited to 8000 characters.

26

Slide 29: Selection Criteria 4

Selection Criterion 4 requires an applicant to describe what ‘success’ would look like in the relevant location, where an Entrepreneurship Facilitator has delivered all their services.

In preparing a response to this criterion, an applicant should tell the Department how its delivery of Entrepreneurship Facilitator Services will:

• enhance existing services• establish new support services• enhance employment outcomes for clients.

This criterion carries a weight of 10 per cent and is limited to 2000 characters.

27

Slide 30: Other Considerations

In addition to the selection criteria, there are a number of other things worth noting in submitting an application.

Applicants must provide one, or up to two written referee reports. Referees must be able to verify the applicant’s claims. This includes claims made in response to selection criteria, particularly in relation to the services that the applicant has previously provided for young people and how they relate to Entrepreneurship Facilitators services.

The Department may contact any party, even if that party has not been nominated by an applicant to confirm claims made in an application.

Applicants must not make false or misleading statements in their application and must answer all questions honestly and completely.

28

Slide 31: Application Lodgement

Applications for Entrepreneurship Facilitators will close at 5. 00 PM Canberra time on Thursday 3 November 2016.

Applications are being processed through 360Pro, an online grant application tool.

The Department will only accept responses on the correct forms that have been downloaded from 360Pro and will not accept any attachments with the exception of referee reports and documents requested by the Department.

If any addenda are issued, you will receive notification through the email address you have registered in 360Pro.

Once an applicant has lodged their response on 360Pro, they can re-open the application and make changes prior to the closing date and time. Applicants should note that when re-opening an application it will no longer be considered as ‘submitted’. If an applicant re-opens an application they must click on the submit button again to re-submit the amended application.

To assist with submitting an application, applicants should read the 360Pro Reference Guide that can be downloaded as part of the documents that make up the grant application pack.

29

Slide 32: Non-conforming responses

Applications must be lodged via the 360Pro system on the forms provided before the closing date and time.

360Pro will not allow applications to be submitted after the closing date and time.

Importantly, Applicants should make sure that they allow sufficient time to load the response and receive the official receipt of lodgement well before 5. 00 pm (Canberra time), 3 November 2016.

To help make sure that applicants don’t miss the lodgement deadline, the Department intends to issue reminders through addenda on 360Pro, 10 and five days before the closing date and time.

30

Slide 33: Selection Process

The selection process involves the following:

The Department receipts all of the applications received up until the closing date and time.

• Applications are then checked for conformance with the remaining mandatory requirements, including the applicant’s eligibility to apply.

• Departmental staff with appropriate expertise and training will assess the responses to the selection criteria and allocate a score. The Department will shortlist applicants based on the scores.

• The shortlisted applicants will be required to participate in an interview, that will be scheduled for 10-16 November 2016. These applicants must be available for an interview during this period or they may be excluded from this grant process.

• Applicants will be assessed for financial viability and assigned a risk rating.• A departmental Quality Assurance Team will observe and conduct a number

of checks for consistency throughout each stage of the selection process.

31

Slide 34: Selection Process (cont. )

Following assessment, the Department reviews the outcomes, including consideration of the score awarded to the applicants for their responses to the selection criteria, and applicants’ financial capacity to deliver the proposed services.

A committee of senior Commonwealth officers considers the outcomes of the assessment process and makes recommendations to the delegate.

The delegate examines recommendations and makes the final decision based on the principle of value for relevant money for the Commonwealth.

The overall selection procedures are also reviewed, and the selection process itself is monitored through a quality assurance process by the independent probity adviser.

The Department expects to announce the outcomes early December 2016.

Offers to successful applicants to enter into a Funding Agreement with the Department will be despatched.

Applicants will be informed in writing of the outcome of their responses within 28 days following the conclusion of the process.

32

Slide 35: Timeline

Key dates for Entrepreneurship Facilitators are:

13 October 2016: Grant Guidelines for Entrepreneurship Facilitators released on 360Pro

21 October 2016: Entrepreneurship Facilitators webinar 3 November 2016: Closing date and time for Entrepreneurship Facilitators

Applications – 5. 00 pm (Canberra time) 1 December 2016: Announcement of outcomes December 2016: Commencement of Entrepreneurship Facilitators.

Following the closure of the application period for Entrepreneurship Facilitators, assessment will be undertaken.

We expect successful applicants to be contacted from November 2016 with Funding Agreements to be signed in December shortly before the commencement of the initiative.

It is expected that services will commence in December 2016.

33

Slide 36: Sources of Information

Further information regarding Entrepreneurship Facilitators can be obtained from the Grant Guidelines published on 360Pro and the Questions and Answers published on the Department’s Employment Services Procurement Information website.

You can also contact the Employment Services Purchasing Hotline as per the contact details on the slide. The Hotline can only provide information that is publicly available, and cannot provide interpretation or advice.

34

Slide 37 : Questions

We would be happy to take any questions you may have.

If a question cannot be answered, we will take it on notice and publish the answer at a later date.

If you have questions outside of this webinar session, please submit these through the Employment Services Purchasing Hotline.

The response to questions received through the Hotline may be published under the Questions and Answers on the Department’s website.

When asking questions, please state your name and the organisation you represent for our scribes to record.

35