It pays to support Indigenous entrepreneurs
Right time for meaningful progress toward economic reconciliation, write JP Gladu and Mark Little.
June 21 is National Indigenous Peoples Day and this year it’s appropriate to recognize the remarkable accomplishments of Indigenous entrepreneurs. Their contributions to our economy and the well-being of their people are of tremendous importance to Canada’s future.
Indigenous participation in the economy is one of the great social and economic endeavours of our time. Action to raise incomes and living standards for First Nations, Inuit and Métis peoples is central to mending our social fabric and achieving economic reconciliation.
Essential to this task are corporate and government procurement policies that spur the growth of Aboriginal businesses and create good, lasting jobs. Such policies provide a viable path to Indigenous self-sufficiency.
The growing size and capacity of the sector make this the right time for meaningful progress toward economic reconciliation.
There are now an estimated 43,000 Aboriginal-owned businesses in Canada. In 2016, Aboriginal businesses contributed an estimated $12 billion to Canada’s GDP, and the total combined income of Indigenous households, businesses and governments reached $32 billion. Although this is a significant improvement from the past, Aboriginal incomes lag average incomes in Canada by 25 per cent, resulting in a significant gap in their standard of living relative to the average Canadian.
Indigenous entrepreneurs have established businesses in every province and territory across a range of industries — including natural resources, construction, manufacturing, retail and service sectors.
Let’s look at the oilsands industry for example. The Aboriginal business spend for the oilsands industry in 2015 and 2016 combined reached $3.3 billion, up significantly from the past.
Signs the sector is poised for impressive growth are everywhere. More and more companies are including Indigenous-owned suppliers in their procurement networks. This is happening because Aboriginal entrepreneurs provide valuable services and products and bring a unique perspective to the table. As well, Canadian businesses generally have come to understand everyone wins when supply chains are inclusive.
In partnership with Suncor and a fast-growing network of leading corporations, the Canadian Council for Aboriginal Business (CCAB) has just launched a multiyear strategy to drive new procurement contracts for Aboriginal-owned companies.
This unprecedented initiative is called Supply Change. Its aim is to connect corporations and small and medium sized enterprises (SMEs) with qualified Aboriginal-owned businesses. CCAB is creating a digital Aboriginal Procurement Marketplace where Indigenous and non-Indigenous companies can more easily exchange information about procurement opportunities.
Companies joining this national enterprise to propel the Indigenous economy serve as Aboriginal Procurement Champions and commit themselves to increasing opportunities for Indigenous businesses to participate in their supply chains. They also pledge to actively encourage companies within their respective business networks to do the same.
Many of these champions also provide Indigenous entrepreneurs and their teams with skills training and mentoring as well as the business know-how and technical resources required for success.
Corporations and SMEs who join have access to an exclusive directory of Certified Aboriginal Businesses, which are independently certified as at least 51 per cent Aboriginal owned and controlled.
Since its launch on May 10, 28 corporations have already joined the Supply Change movement. We invite all businesses with the potential to include Indigenous suppliers in their procurement networks to join us.
These companies and others who elect to become Aboriginal Procurement Champions are on the right side of public opinion. A recent survey conducted by Léger for CCAB and Sodexo Canada found 81 per cent of Canadians agree corporations should include Aboriginal businesses in their supplier networks whenever possible.
As we celebrate National Indigenous Peoples Day, we see an opportunity for Canada’s business leaders to embrace the changing times by encouraging and delivering the decisive action needed to achieve meaningful economic reconciliation. JP Gladu is president and CEO of the Canadian Council for Aboriginal Business and Mark Little is chief operating officer of Suncor and co-chair of CCAB’s Aboriginal Procurement Initiative.