Program Overview: Economic Development
This output is comprised of one major program, the Economic Program, which supplements and contributes to mainstream programs aimed at increasing the economic empowerment and status of Torres Strait Islander and Aboriginal people living in the Torres Strait region. The Program also aims to develop opportunities for enhancing employment, training, enterprise development and home ownership.
The Economic Program is comprised of 3 sub-programs:
SUBPROGRAM: BUSINESS FUNDING SCHEME (BFS)
Objective To increase the economic independence of Torres Strait Islander and Aboriginal people living in the Torres Strait region by facilitating the acquisition, ownership and development of commercially viable enterprises in accordance with the principles of sustainable economic development.
Description The BFS provides Torres Strait Islander and Aboriginal people living in the region with the opportunity to establish, acquire, develop and own their own business thereby facilitating their economic independence. Over the years, the BFS has assisted many individuals and partnerships to establish successful business ventures in a range of industries. This in turn creates employment for the Indigenous people of the Torres Strait and Northern Peninsula Area.
In 2007, the TSRA Board requested that additional business support activities be created and implemented to increase the potential for commercial enterprise success. Investigations subsequently identified that greater assistance is required for small business operators in the region, particularly during the initial development stages, to understand legal and financial requirements and successful marketing and operational practices. Consequently, the TSRA Economic Development Unit has developed a Small Business Development Framework, which now underpins the business loan process. The primary purpose of the Framework is to both accelerate economic development in the region and improve business success. It was endorsed by the TSRA Board on 7 December 2007 and has been implemented from 1 February 2008. The Small Business Development Framework encompasses the following four activities:
Community Economic Business Forums Regular Community Economic Business Forums held within island cluster groups provide an opportunity for community members to explore general business development principles. The forums stimulate discussion of community business aspirations and assist with the identification of potential local economic opportunities as well as the basic requirements of starting/running a business. The forums are often supported by case studies of successful Indigenous businesses and successful Indigenous entrepreneurs regularly attend to share their business creation and success stories. The forums also provide an avenue for the TSRA and other stakeholders to outline potential available business support.
Small Business Training Eligible applicants with a commercially viable business idea are offered the opportunity to participate in a Small Business Training Program. The training is practically focused on creating a business plan with specific action steps to help facilitate success.
Financial Statement Submission To assist clients create successful businesses, and to highlight their business loan status, clients are required to submit their financial activity statement each quarter. The statements are analysed for performance and provide a basis for informed mentoring support.
Quarterly Mentoring or Additional Training Business loan clients will be provided with quarterly business mentoring support to monitor the financial and operational health of their business and provide business advice and support where possible. Activities
Community Economic Business Forums The forums are conducted quarterly and are held over a three day period on each island cluster with a focus on business success factors, identifying Indigenous business success stories, and exploring potential business opportunities. Business ideas generated from the forum are assessed for initial potential viability. If an applicant meets the basic criteria they are offered a place in the Small Business Training Program to develop a business plan for final assessment.
The first community forum was held at St Pauls Community on Moa Island from 3-6 March 2008, with excellent feedback from the 22 participants. Recently the TSRA hosted the second Community Business Forum on Erub Island. Feedback from Community members indicated that they found the forum very informative and were appreciative of the opportunity to discuss potential business ideas and business support.
Small Business Training The Small Business Training program was developed in consultation with TAFE, community members, and the TSRA Economic Development Unit. The small business training consists of a new hybrid course including modules from Certificate II through to a Certificate IV in Small Business. This course is designed to provide entry level business skills and information required to operate a business in the Torres Strait region and focuses on participants creating their own business plan for practical implementation. On completion of training, participants receive a Statement of Attainment for all modules successfully completed which can be used as Recognised Prior Learning (RPL) towards gaining a Certificate IV in Small Business.
The tuition for the course was funded by the TSRA and the Department of Tourism and Regional Industry provided financial support towards some TSRA business activities. The first Small Business Training Course was conducted from 31 March 2008 through to 23 May 2008 with six participants and was facilitated by TAFE Queensland at campuses on Thursday Island and Cairns. In conjunction with the BFS, workshops were facilitated by Learning Network Queensland in Word, Excel, PowerPoint and Digital Imaging.
Achievements The TSRA has developed a Small Business Development Framework linked to the Business Funding Scheme (BFS) and is currently implementing the framework through a series of regional island community workshops designed to generate Indigenous small businesses with vocational educational accredited training and business support mentoring.
The BFS is proving to be an important source of commercial finance for Torres Strait Islanders wanting to establish or expand their businesses. During the financial period, a total of four loans were advanced at a total value of $277,941. During the financial year nine clients paid out their loans.
As at 30 June 2008 a total of 21 BFS loans remain active. A total of $431,082 in repayments has been returned this financial year into the TSRA General Account. While the majority of the loans remain within the fishing industry, the BFS continues to support businesses in a diverse range of local industries.
The TSRA are working closely with the regional councils to assess the viability of community enterprises that utilise CDEP across the region. This includes building internal capacity of community organisations allowing them to operate commercially sustainable businesses in the regional economy.
The Business Funding Scheme remains a successful business mechanism for Indigenous people as they take on the challenge of private enterprise in a varied range of commercial activities, with further support and assistance now available under the Small Business Development Framework.
How to Apply for BFS To find out if you are eligible for the Business Funding Scheme and to download an application form, click here, TSRA Business Funding Scheme. SUB-PROGRAM: HOME OWNERSHIP
Objective To provide home ownership for the Indigenous residents of the Torres Strait region through home loans, thereby improving their economic status and social wellbeing.
Description The Home Ownership Scheme provides home or land loans at concessionary interest rates to Torres Strait Islander and Aboriginal people living in the Torres Strait region who would not normally be able to obtain assistance from conventional lending institutions. The scheme is targeted at low income first home buyers according to a points system based on family size and rental circumstances. The scheme is self-funding.
Achievements This year a total of $485,620 has been released to three housing loan clients for either the purchase of new homes or the re-finance of existing loans.
A total of $988,425 in repayments has been returned during the financial year into the Housing Account. In addition, six housing loans have been paid out leaving the total housing loan portfolio at 28.
How to Apply for the Home Ownership Scheme For more information about the Home Ownership Scheme and to download a Home Loan application form, click here, TSRA Home Ownership Scheme.
SUB-PROGRAM: COMMUNITY ECONOMIC INITIATIVES SCHEME (CEIS)
Objective To contribute directly to the economic growth of communities by supporting the development of income generating projects with social, cultural and economic benefits.
Description Through this component grants are provided to Torres Strait Islander and Aboriginal organisations for the establishment and/or expansion of commercial income generating ventures.
Achievements During the financial year, the TSRA approved a net amount of $1,827,560 for CEIS projects, including roll-overs from 2006-07 and less projects not proceeded with. A detailed list of projects are detailed on page 50 of the 2007-2008 TSRA Annual Report.
How to apply for CEIS For more information about CEIS, click here, Community Economic Initiatives Scheme.