Aboriginal Self-Employment Assistance Program
Introduction
This guide is designed to assist individuals who want to become self-employed. Aborginal Self-Employment Assistance Program(ASEA) will allow you to maintain your Employment Insurance (EI) or Part II Benefits while operating your business for a period of 52 weeks from the date of approval.
What is It?
The ASEA is a tool that will assist individuals to create employment for themselves through self-employment by providing them with the necessary support during the period of start-up of operations. Assistance may include referrals, technical advice and financial support.
Who Can Apply?
To be elgible for Self-Employment, you must meet the following criteria:
- be a resistered member of Miawpukek Mi'kamawey Mawi'omi;
- be unemployed;
- have an established Employment Insurance(EI) claim or one that has ended within the last three years, or have received maternity or parental benefits within the past five years;
- to attend a self-assessment session with the Employment counselor of TEDD to assess your own abilities of becoming self-employed;
- have no previous participation in self-employment assistance activity funded by TEDD within the past five years;
- agree to provide TEDD with a business plan within a reasonable timeframe, demonstrating potential for long term self-employment (depending on the nature of the application, a business plan may be required upfront;
- start a new business or take over an existing business of which you had no prior ownership;
- agree to work full time (at the minimum 40 hours per week or negotiated weekly hours) on your business while you receive financial assistance. Twenty hours per week shall be considered full time for persons with disabilities;
- be able to contribute equity, the amount of which shall be determined in consultation with the TEDD coordinator;
What Financial Assistance Will You Recieve?
If you are in receipt or eligible for EI, you will continue to receeive these benefits until your claim expires. If your EI is lower than the established rate of $240.00 per week, it may be topped up to the rate. Once your claim expires, you are eligible to receive Part II benefits at the supplement rate of 75% of your EI. You may also be entitled to additional supports to help offset cost while establishing your business. The Employment Counselor will be able to provide you with the information or referrals on additional financial support. If you are not in receipt of EI and have not been in receipt of EI within the last 3-5 years, you may qualify for Part II benefits at the established rate of $240.00 per week.
Special Instructions To Employment Insurance Claimants
In order to remain eligible for EI while your proposal for the Self-Employment benefits is being considered, you must be able to prove that you are still unemployed and available for work. You must continue to make an effort to find work and you cannot start your business until approval for Self-Employment has been approved in writing. Once your proposal has been approved and have signed a contract, you will be working full time to establish your business and will receive the agreed upon income support.
How To Begin
- Self-Assessment Component
During this activity, you will assess your own abilities in terms of becoming self-employed. The self-assessment tool is primarily designed to be a self-evaluation for the participants during the decision making process to ensure that self-employment is a viable option for you to pursue. To arrange for the self-assessment session, contact the TEDD employment Counselor. - Identify a business opportunity and prepare a business concept.
For individuals who are uncertain of the business venture, it would be necessary to identify several business ideas for offering products or services that fit your own unique skills, talents and interests. Research should be conducted on each of the ideas to identify which idea has the greater chance of success for attracting and keeping customers.
-It is important to pay particular attention to certain business ventures considered not suitable.
-These include a business controlled by someone other than the person receiving financial assistance; and a business where revenue is mainly from commissions, such as sales commissions. - Other Conditions will include;
- The business must not be financialy supported by another company. Persons who will be agents for the business or subcontractors do not qualify for support;
- The business must be suitable for public funding and not exploit sex, religion or politics;
- You can start your venture in an area of seasonal work but you must work full time on implementing your business plan. You may also be engaged in more than one type of seasonal enterprise;
- If you enter into a partnership, it must reflect that you are in control of the venture with at least 50% ownership
- In a limited company, self-employment participants must hold at least 50% of the shares with voting rights.
A business description shall summarize and explain the following:
- the product(s) or service(s) the business will offer;
- who will be your customers;
- how it is unique or different from the competition; and
- why do you think the business will be successful.
A referral can be made possible through TEDD should you require assistance in preparing your business plan. TEDD can refer you to Miawpukek Band's Economic Development Department, which has staff and resources to assist with the business plan preparation. While the self-assessment, business concept and business description as mentioned above, must be completed prior to being approved for the ASEA, the complete business plan, under certain curcumstabnces, can be written in further detail following approval. The time taken to complete the business plan may be considered as part of the time for which you are an approved participant under the ASEA.
Once the aanlysis of the self-evaluation and a review of your business description and business plan has been made by the TEDD director, if approved, you will sign an agreement with TEDD and the appropriate documentation shall be uploaded by our Client Adjustment Tracking System to HRDC for notification and documentation of the same.
