Indigenous business growth: Working together to realise potential
New report says that increasing support for Indigenous businesses could, in turn, lead to prosperity for all Australians. A higher level of commitment and collaboration from both business and government is required. Challenges facing Indigenous businesses include start-up funding, skills and support systems and lack of demand for services.
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OVERVIEW
Opportunity
Increasing support and opportunities for Indigenous businesses can drive prosperity for all Australians. Despite the immense growth potential across various sectors, Indigenous businesses face several challenges, including lack of funding, skills support system, and limited demand that must be addressed to realise their full potential.
A closer look at the sector
Construction, health, social services, and tourism display considerable potential for Indigenous business penetration and growth, owing to their industry growth, size, ease of entry, competitive advantage and support from the government and business community.
Challenges faced by Indigenous businesses
Remote and rural Indigenous businesses face additional obstacles in terms of limited access to business networks, skills, and interaction with the wider market. Procurement processes of government, large organisations/ businesses, unavailable resources, and lead times increase the difficulty for businesses to access resources.
What can be done to support Indigenous businesses
Opportunities to support and increase the growth of Indigenous businesses include tailored procurement policies, providing greater visibility of funding sources, reviewing the design of current funding sources, creating further support networks, building capabilities to enable Indigenous business engagement. Additionally, mentors could transfer their skills to Indigenous entrepreneurs or business owners to develop business plans and apply for funding, providing essential support and advocating for the effort within their organisation and raise awareness, offering expertise or mobilising support initiatives delivering benefits to the indigenous community.
Recommendations
The report emphasises the significance of increasing support for Indigenous businesses, which would create long-term sustainable growth, job security, and education opportunities. Corporate Australia and the government should focus on procurement that provides opportunities for Indigenous businesses, create more visibility of available funding sources, and provide support for smaller scale businesses.
