Young entrepreneurs can apply for business licence for just $1

Kevin Berger – Leader Staff

Town of Barrhead councillors passed all three readings on an amendment to the Business Licence Bylaw during the July 9 meeting that will allow young entrepreneurs to obtain their own temporary business licence for $1.

Director of development and legislative services Cheryl Calihoo reported that administration had prepared the amendment following a discussion around Lemonade Day at the June 25 council meeting.

Lemonade Day is an annual event where youth learn the basics of starting a business by taking classes, applying for the appropriate licences and then hosting a lemonade stand. It was held on June 22 and about seven different groups of youth participated locally.

It was suggested at the June 25 council meeting that the town amend its Business Licence bylaw so that youth could start their own businesses outside of the Lemonade Day event, perhaps in conjunction with a special event like Blue Heron Fair Days.

Mayor Dave McKenzie said he thought it was a great opportunity for youth to test their entrepreneurial skills.

“I had one (parent) come up to me just a couple of days ago and express her excitement over the capability for youth to be able to do this,” he said.

The business licence application requires the name and signature of a parent/guardian, as well as the proposed location for a business. If a young entrepreneur sets up a stand at a special event, permission in writing must be obtained from the organizers.

As well, if the young entrepreneur is selling food products, they have to obtain a permit from the health inspector.

Initially, the fee was for a temporary business licence was set at $10 per month. However, council approved an amendment setting the fee at $1 after Coun. Dausen Kluin spoke in favour of reducing the cost.

“I just want the kids to go through the process of getting a business licence. Personally, I don’t want to make very much money off of them,” Kluin said.

First reading of the bylaw was passed 6-1. Coun. Rod Klumph initially voted against the bylaw because he was concerned about the legalities and potential liabilities that would arise from granting a business licence to a youth.

Klumph pointed out that other businesses generally have to acquire various types of liability and property insurance before they are allowed to operate in town.

Coun. Ty Assaf, who acted as one of the judges for Lemonade Day, asked Klumph “what type of liability could possibly come out of a lemonade stand.”

In turn, Klumph pointed out that the licence allows youth to sell food or products other than lemonade.

Calihoo noted that when the town issues a business licence, the town doesn’t have any liability.

After a dinner break, McKenzie pointed out that if young entrepreneurs “jump through all the hoops” outlined in the bylaw, the actual potential risk of litigation would be minor, if anything.

He also pointed out that all of the facilities operated by the town, including playgrounds and ball diamonds, carry some degree of risk.

“If we hide under the shadow of possible litigation, nothing would happen in this community,” he said.

“I think it’s just an opportunity to allow the youth to try their entrepreneurial skills and get that experience. Ultimately, they’re the ones that will address any issues (that may arise).”

Coun. Leslie Penny added that part of the intent of this amendment is to teach young people about the necessity of applying for a licence before they start up a business.

“We’re doing this to tell our people in the community that we support young people and that we’re willing to encourage them to do this,” she added.

Coun. Shelley Oswald added that this bylaw provides an opportunity to grow the community’s young entrepreneurs.

‘”I think if we give them that opportunity to do so when they’re younger, they’re more apt to say, ‘Well, I can do that!’”

Klumph ultimately agreed to allow for second and third readings on the bylaw. (Unanimous consent by all town councillors is needed to pass three readings on a bylaw at the same meeting.)

While town council could have done the second and third readings at their next meeting in August, McKenzie pointed out that would basically eliminate half of the summer.