2012 BDC YOUNG ENTREPRENEUR AWARD FAQ RECRUITMENT PERIOD (MARCH 5 MAY 6)

Why have you taken this new approach? As BDC continues to develop its online presence, including social media channels, we have an opportunity to use these platforms to build on the success of the BDC Young Entrepreneur Award program that was originally introduced in 1988. Since then, more than 2,000 businesses have participated in the program and 275 entrepreneurs have received a trophy, together with valuable visibility and recognition for their businesses. The new approach to the BDC Young Entrepreneur Award, with a contest that engages the general public in an online voting process, will provide young entrepreneurs with additional opportunities to showcase their businesses and gain even greater national and regional visibility.

Why have you created the BDC Grand Prize for Innovation? Why focus on innovation? Canadian businesses need to be increasingly innovative to succeed in todays highly competitive world. The $100,000 BDC Grand Prize for Innovation recognizes, encourages and supports young entrepreneurs who put innovation at the heart of their business strategy. This is our way of supporting the next generation of entrepreneurs in their quest to become business leaders in their field. In addition to this, the BDC Young Entrepreneur Award runner-up will receive a $25,000 BDC Consulting customized internet business strategy, designed to help the beneficiary increase sales and stand out in a competitive world.

How do you define innovation? At BDC, innovation falls under two main categories: Radical innovation, which is usually associated with inventions or technological breakthroughs; and Incremental innovation, which refers to improving existing products or services.

For this years edition of the BDC Young Entrepreneur Award contest, we are looking for new innovative projects large or small that will help entrepreneurs take their businesses to the next level by improving their processes, products or services, or increasing their potential for growth or their ability to better meet their clients needs.

How will you make sure the winning project is carried out? What are the winners obligations? The process doesnt end when a winner is selected. The winner will be required to abide to specific controls. The $100,000 BDC Grand Prize for Innovation will be paid in two to four installments over the course of the project implementation, based on the nature of the project and identified milestones. Disbursement of the funds will be subject to verification. Starting July 2012, the BDC Grand Prize for Innovation winner will be required to keep a video journal tracking the progress of his/her innovation project. Through BDCs microsite and Facebook page, the general public will watch the winning project come to life.

Who can apply? An applicant must: be an entrepreneur between 18 and 35 as of December 31, 2011; be a Canadian citizen or hold permanent resident status in Canada; have been responsible for the companys day-to-day management for a minimum of two years as of December 31, 2011; hold at least 20% of the companys capital stock. The applicants business must: be registered in Canada and have its Head Office in Canada; have been in operation for at least two years as of December 31, 2011; be financially healthy and be reasonably expected to be successful. Not-for-profit businesses are eligible provided that: they are engaged in viable commercial activities organized in Canada; government support and private donations received do not exceed 40% of their income.

Do I have to be a BDC client to apply? No. Eligible entrepreneurs do not have to be BDC clients.

Can previous BDC Young Entrepreneur Award applicants apply? Previous years applicants are welcome to apply, providing they meet all eligibility criteria for the 2012 edition of the BDC Young Entrepreneur Award contest. Winners of Young Entrepreneur Awards from previous years are not eligible to apply.

When do I need to submit my video? Your video is one part of your submission, which also includes a four-part application form. The application form and the video need to be submitted together at the same time at www.bdcyoungentrepreneuraward.ca until May 6, 2012. Only online applications will be accepted. The video and application form (and all supporting documents as applicable) must be submitted during the same session because the information cannot be partially saved.

What should be included in the video? You will be required to outline your innovation project, including the following: the projects description, objectives and target markets; the resources required; the expected results; and the timeline. Make sure that your video: clearly communicates what your project is is innovative, with original content has good image and sound quality is from one to two minutes in length. Remember, your video could be your pitch to the general public, who will ultimately choose the winner. So make sure it is well-presented and memorable. Be clear, concise and persuasive.

What rules do I need to follow for the video? Below are a few basic rules. You can find the full list in the SELECTION section of the contest microsite. Your video should: be between one and two minutes in length not exceed maximum file size of 100 MB be in one of the following formats: .mpg, .mov, .wmv, .3gp, .mp4 or .avi display no logos of other companies (your company logo is fine, but be careful with T-shirts, hats, cars, etc.) have copyright licences for all third-party references, likenesses, images, video or music. Refrain from using any songs, photos, videos or logos purchased for your personal use without written permission for public usage. comply with Canadian laws and legislation and not be defamatory, libellous, unsuitable, offensive, obscene or otherwise inappropriate

What if I have technical problems uploading the video? Prompts will appear to guide you through the process. However, if you experience technical issues, you can call 1 877 BDC-BANX for assistance. Or, you can explain your

problem, providing as many details as possible, and send us an email through CONTACT US on the Contest microsite. We will reply within two business days.

How will the video be used? Who will see it? If you are selected as a finalist, your innovation project, your video and a brief overview of your company will be posted on BDCs contest microsite and Facebook page, BDC Entrepreneur. Starting May 30, 2012, the public will view your submission and cast their votes to decide whether your project deserves the $100,000 BDC Grand Prize for Innovation.

How do I apply? Youll find detailed information about the application process in the APPLY section of the Contest microsite. Before you start the application process, make sure you have read and understood the Rules and Regulations of the contest. The application process takes about 20-30 minutes. Before you begin, youll need to have the following elements ready: your one- to two-minute innovation video a digital photo (of each applicant, if more than one) your company logo date your company began operating financial results (profit or loss amounts) for 2009, 2010 and 2011 (based on most recent internal financial statements) number of full-time and part-time employees any supporting documentation for your innovation project in Microsoft Office [.doc, .docx, .xls, .ppt] or PDF format (no larger than 10 MB) You need to complete the process in one session, because the information cant be partially saved.

What information do I need to provide? Make sure to read the full list of application requirements in the APPLY section of the Contest microsite. You will be required to outline your innovation project, including the following: the projects description, objectives and target markets; the resources required; the expected results; and the timeline. You may want to prepare this information in advance in a separate document, so that you can cut and paste it into your application. You may attach up to four supporting documents for your innovation project, in the required file format. If you are a professional or work in a field that requires a license, certificate or other proof of qualification, you need to submit a copy of it with your application. The information submitted in the application is confidential.

How will my personal information be protected? All applications, including personal data, information and documents included in the application file, will be kept confidential by BDC according to BDCs Privacy Policy and will be used only during the evaluation process and in the course of administering the Contest. In the course of an applications evaluation, the information will be divulged only to parties who are authorized to review it. You will find more information regarding confidentiality in the Contest Rules and Regulations, on the Contest microsite.

Will the information I submit be posted anywhere? Under the 2012 Contest Rules and Regulations, the information you submit will remain confidential.

What if I have technical problems submitting the application? If you are not able to submit the application, explain your problem in detail, including information about the Internet Explorer version you are currently using, then send us an email through CONTACT US. We will reply within two business days. You can also call 1 877 BDC-BANX. Will my video be posted on BDCs Contest microsite and BDC Facebook page when I apply? Only the videos of the 11 finalists will be posted on BDCs Contest microsite and Facebook page, BDC Entrepreneur, for the duration of the voting process.

Will I be able to see who else has applied? Will you publish the names of applicants? Applicant information is confidential, so the names will not be posted.

Can I submit more than one innovation project? No, you are not allowed to apply more than once for the 2012 BDC Young Entrepreneur Award. Applicants who apply more than once will automatically be disqualified.

Who will select the 11 finalists? Eleven selection committees - one for each province and one for the three combined territories will choose the 11 finalists. The committees will be chaired by senior BDC representatives, and will be made up of business people, representatives of 2012 Contest sponsors and representatives of organizations with an interest in entrepreneurship.

How will the committees choose the finalists? Each committee member will review submissions for his/her province or the combined territories, and evaluate them based on a standard evaluation grid. Specifically, individual judges will evaluate the following elements: a) originality and relevance of the project b) plan of the innovation project, including: the project description and objectives the resources (human and financial) required to carry out the project the expected results the timeframe in which the project will be completed (milestones and dates) the content of the video c) how the project will meet clients needs d) how the project will increase the companys growth potential e) the projects feasibility f) the companys profitability Once all submissions have been evaluated, the selection committees will determine potential finalists for their respective province/combined territories. The potential finalists will then be contacted by phone or email and will be required to submit within one working day of notification their companys financial statements for the past 24 months prepared by an accounting firm. If such financial statements are not yet available, finalists will be required to submit the balance sheet and internal income statements for the past 12 months together with the previous years financial statements prepared by an accounting firm. Upon receipt of financial statements, the full application file and financial statements of potential finalists will be subjected to due diligence. Once the due diligence has been successfully completed, the chosen finalist for each province/the combined territories will be contacted by email or phone no later than May 16, 2012 during business hours (Eastern Time). If applicants have not been contacted by this date, they may assume that they are not among the 11 finalists.

When will official finalists be notified? Official finalists will be notified by email or phone no later than May 16, 2012 during business hours (Eastern Time). The applicants who have not been contacted by this date can assume that they are not among the finalists. The official finalists will also have to be available for a telephone interview of at least 30 minutes with BDCs public relations team within 24 hours of notification. When will the finalists be announced? The finalists will be announced on May 30 on BDCs Contest microsite and Facebook page, BDC Entrepreneur.