It takes courage, persistence and steadfast determination when you are fighting for equality, especially when it seems like there are endless obstacles blocking the path. Indigenous people from across Canada have been fighting for acceptance and their place at the economic table for centuries. The National Indigenous Economic Strategy (NIES), released earlier this month, stands as an important pillar of strength for Indigenous people and organizations across Canada in breaking down barriers and creating a conversation for change.

Canadian Council for Aboriginal Business is a joint member of the core working group of 20 Indigenous organizations from across Canada that jointly held the pen to create this monumental document. The NIES lists 107 economic calls to prosperity for Indigenous Canadians laid out in four pathways: land, infrastructure, people and finance.

The time is now to realize that Canada’s future prosperity will depend on the success of its growing Indigenous population. Currently, Indigenous Peoples are the youngest and fastest-growing demographic in Canada, and they are creating businesses at nine times the rate of the average non-Indigenous Canadian.

There are close to 60,000 Indigenous businesses across Canada, in every sector and size and every province and territory. And Indigenous women are leading this growth, especially when it comes to introducing new products and services and creating innovative business practices. It has been estimated that the Indigenous population contributes over $32 billion annually to Canada’s GDP, with the private sector economy contributing just over $12 billion.

The time is now to realize that Canada’s future prosperity will depend on the success of its growing Indigenous population.

As the NIES document states, “economic reconciliation is a multifaceted process that includes political and social challenges. Economic reconciliation is not possible when many Indigenous people live in poverty, have inadequate housing, and lack access to clean water and other public services.”

The history of inequality for Indigenous Peoples in Canada is well documented. In 1867, through the Indian Act, inherent Indigenous economic rights were taken away. From 1881 until as recently as 2014, the Indian Act contained a permit system to control First Nations’ ability to sell products off the reserves. And until 1951, Indigenous Peoples were not considered Indians under the Indian Act if they obtained post-secondary-school degrees, which then meant that if you were a lawyer, an engineer or a doctor, your Indian status was stripped away.

When civil liberties were taken away from Indigenous people, so were the mentors and role models for youth, as well as the opportunity for intergenerational wealth. The repercussions have paved the way to generations of financial struggle and trauma. Nothing could paint a better picture of Canada’s history of oppression of Indigenous people than the discovery last year of the 215 children’s remains confirmed at the Tk’emlups te Secwepemc institution and the thousands since at other residential “school” locations.

The discovery, which happened during the 30 months that our coalition of organizations was developing this economic strategy, provided a solemn reminder of all that our communities have lost. While we continue to be aware of the past, the NIES document lays out the necessary steps the Canadian Council of Aboriginal Business, Indigenous organizations across Canada and every Canadian must take toward making this country whole.

An essential part of that is improving economic reconciliation for Indigenous Canadians by urging corporate Canada to conduct meaningful consultations with Indigenous communities and treat them as economic stakeholders, not only through obtaining informed consent, but as equal partners.

We see leaders in corporate Canada building and benefiting from opportunities in procurement, in partnership and in investment. Corporations, investors, institutions, governments and all Canadians stand to benefit by supporting, partnering with, procuring from, and investing in Indigenous communities, businesses and peoples.

When Indigenous people do well economically, so does Canada as a whole.

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Then, of course, COVID happened. The day we announced to our staff that I would be the new CEO of the Canadian Council for Aboriginal Business (CCAB) was also the last day we all worked in the office together. On March 16, 2020 we began working remotely to help stop the spread of a new virus that had begun to sweep across the globe. Since then, I have seen businesses and communities pull together in formidable ways, but there’s no denying that the pandemic has been particularly hard on Indigenous businesses.

In May, we launched a survey in partnership with the Indigenous Business COVID-19 Response Taskforce to understand the impact of the pandemic on Indigenous businesses. The results were deeply worrying. Just under half (44%) of Indigenous businesses indicated that, without support, they were likely to fail after three to six months, while 10% of businesses predicted operations could not last more than a month without support; 2% said their businesses had already closed.

There were also some stark differences between demographic groups:

• 61% of women-owned Indigenous businesses reported a “very negative” impact compared to 53% of men-owned businesses.

• 38% of Inuit-owned businesses experienced a revenue drop of 50% or more, compared to 27% of Métis and 31% of First Nations–owned businesses.

While the federal government was quick to announce support for Canadian businesses last spring, Indigenous businesses were initially ineligible for some programs because of their unique business or tax structures. There was also no initial support for the more than half of Indigenous businesses that don’t use traditional financial institutions to access financing, in particular those owners who live on-reserve and lack the collateral typically used to get a loan. The pandemic has only highlighted that Indigenous businesses face distinct barriers. Limited access to financing, unreliable internet access, lack of adequate infrastructure, and limited personal net worth are some of the key issues that have been exacerbated over the past year. Economic reconciliation means addressing these barriers.

Understanding the unique ways that Indigenous business, and as a result the Indigenous economy, operates – much of which has been out of necessity – is a key element to ensuring equitable access to resources. And if Indigenous-owned businesses are to thrive, they’ll need more than just better access to loans, financing and COVID-response programs. In 2019, the Government of Canada committed to having “at least 5% of federal contracts awarded to businesses managed and led by Indigenous Peoples.” Though that figure has been as low as 0.32% some years, CCAB research demonstrates that Indigenous businesses in Canada could meet up to 24% of the federal government’s current spend.

Despite the barriers that Indigenous people have faced since contact, they have persisted. That determination was demonstrated last spring, when many Indigenous businesses pivoted their operations to supply personal protective equipment to help meet increased demand. Our survey identified 84 businesses providing PPE and 57 that could quickly retool to do so. However, there was little evidence of the federal government meeting its 5% target on PPE contracts.

Through our Aboriginal Procurement Marketplace, we already connect 72 Procurement Champions – Canadian companies that have committed to Indigenous procurement – with hundreds of businesses certified to be 51% or more owned and controlled by Indigenous people, through the Certified Aboriginal Business program. By increasing Indigenous procurement, corporate Canada can be part of moving the dial on economic reconciliation – a mutually beneficial opportunity that supports the Indigenous economy without affecting a corporation’s bottom line.

Initial results of a second survey to see how Indigenous businesses are faring nearly a year into the pandemic demonstrate that although things are more optimistic for business owners, they still report negative impacts, particularly on revenues and staff. They continue to face challenges accessing government support. Despite the odds, Indigenous businesses like media company Kejic Productions, cosmetic start-up Cheekbone Beauty and skincare company Satya Organic have seen impressive growth this past year. As economies recover from the pandemic, we want to build on that growth.

As our 2020 COVID survey showed, recovery will be a particularly volatile time for Indigenous businesses as they navigate additional barriers, but Indigenous businesses have demonstrated capacity, determination and innovative thinking in the face of the pandemic. It’s more important than ever that as we reopen and rebuild, we ensure that we build an inclusive, more equitable economy that benefits us all.

Tabatha Bull is president & CEO of the Canadian Council for Aboriginal Business.

This article is part of our Indigenous Economy Rising cover series from Corporate Knights Spring Issue, out April 21, 2021.

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