| August 16, 2019
At Futurpreneur, our priority is to support entrepreneurs across Canada – and to accomplish this we ensure our investments and resource allocations start with them.
Over the last three fiscal years, we have supported close to 3,000 youth-led businesses.
In fiscal 2019, new businesses that were financed through debt slowed a bit across Canada, due to rising interest rates and broader economic factors. Futurpreneur’s results also reflect this overall trend.
Futurpreneur ensures those who apply for our core Start-up Program will have access to support to start and grow their businesses. In our last fiscal year, those programs and supports represented 82 per cent of our total investment, while costs for administration were kept to 8 per cent and the remaining 10 percent was invested to build program awareness, outreach and fundraising capacity.
The average cost to deliver our core programs has increased in fiscal 2019 to reflect additional post-disbursement client support for our entrepreneurs.
More than four of every five entrepreneurs repay their loans in full, enabling their repayments to fund the next cohort of new business owners. We continue to provide strong support to our loan recipients for the five years their term loan is outstanding with us, providing flexibility to serve their needs with early redemption options and restructuring.
FINANCIAL SOURCES OF SUPPORT
While many not-for-profits are striving to retain current funders and identify new sources of support, Futurpreneur is prepared and well positioned to respond to ongoing demand for fundraising and partnerships. Our strength, in a large part, is due to our diversification in our sources of support. We don’t rely on any one source and have built a significant loan asset that is providing funds covering more than half of our annual cash requirements. We attract funders based on our ability to match and leverage their investments with other sources of support, and this is a strong differentiator of our model.
Several multi-year commitments for support from funders enable us to continue existing programs while also building out new resources and support to help businesses start and position for growth. To ensure a growing number of entrepreneurs will have access to loan capital, we also have a line of credit with the Business Development Bank of Canada, solely for the purpose of supporting young entrepreneurs with access to loan capital that exceeds other internal resources and sources of funds. Additional funds from the line of credit were not required in fiscal 2019, with only $4.3 million drawnat March 31, 2019 of a potential $8 million available.