The report shows that 50% of Indigenous businesses are owned and operated in Australia; however, procurement from members remains narrowly focused. The report highlights some underlying issues preventing Indigenous businesses from securing more procurement opportunities, including lack of awareness, access to capacity and capability, and burdensome procurement processes. The report recommends policies to increase demand for Indigenous business procurement through increased awareness, wider corporate sector participation, and broader corporate procurement targets. The report further recommends capacity and capability-building in existing Indigenous business sectors, fostering more substantial Indigenous businesses and creating innovative programs to assist businesses with challenges.

Indigenous business landscape

Indigenous procurement is estimated to represent an $8bn opportunity in Australia and create 19,000 jobs for Indigenous Australians. The report proves that only a few corporate sectors are procuring from Indigenous businesses, and the majority of procurement spend is focused on sectors with greater awareness and where more large firms exist. A range of Indigenous business sectors is receiving a relatively low share of procurement spend, and Indigenous business presence is limited in some sectors.

Underlying issues

The four themes from data analysis and research that underlie these observations include:

• Several sectors of corporate Australia are lagging behind in Indigenous procurement.
• The majority of procurement spend with Indigenous businesses is focused on a few sectors.
• A range of Indigenous business sectors is receiving a relatively low share of procurement flow.
• Indigenous business presence is very limited in some sectors.

Policy recommendations

The report recommends policies to increase procurement demand and satiate challenges facing Indigenous businesses. The government can increase awareness of the Indigenous business sector by encouraging broader corporate sector participation and implementing requirements that firms meet Indigenous procurement targets in exchange for services. Additionally, increased investment in capacity and capability-building in existing Indigenous business sectors is recommended to foster more substantial Indigenous businesses and promote a more diverse set of targets for Indigenous procurement. Meanwhile, organisations should work to address procurement process issues that constrain Indigenous business procurement connections.

Conclusion

The report provides extensive insights into the Indigenous business sector’s landscape, underlying challenges and issues, as well as recommendations for policy action. The report highlights opportunities for the business community, government, and society to support the Indigenous business sector’s growth, create jobs, and reduce inequality.