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Promise and Prosperity: The Aboriginal Business Survey

Promise and Prosperity: The Aboriginal Business Survey. Presented to: Aboriginal Entrepreneurs Conference and Tradeshow Ottawa, ON October 24, 2011. Agenda. Project background Who are Aboriginal entrepreneurs? How are they faring? What are their challenges? What about EDCs?

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Promise and Prosperity: The Aboriginal Business Survey

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  1. Promise and Prosperity: The Aboriginal Business Survey Presented to: Aboriginal Entrepreneurs Conference and Tradeshow Ottawa, ON October 24, 2011

  2. Agenda • Project background • Who are Aboriginal entrepreneurs? • How are they faring? • What are their challenges? • What about EDCs? • What does the future hold? • Concluding thoughts and recommendations

  3. Why does this research matter? • Development of a strong business sector is essential to the future prosperity of Aboriginal peoples • Aboriginal self-employment is on the rise • Lack of current information

  4. Research objectives • Deepen our understanding: the successes, the opportunities and the challenges • Determine goals and strategies used • Identify key factors that contribute to growth and success • For EDCs, address significant information gap

  5. Methodology • Aboriginal Business Survey • Telephone interviews with 1,095 First Nations, Métis and Inuit small business owners (100 employees or less) • Survey field dates: September 10 to November 19, 2010 • National sample stratified by Aboriginal identity group, region, business type and size, based upon 2006 Census statistics • Survey of EDCs • 50 interviews with senior executives of Aboriginal EDCs • Survey field dates: September 13. 2010 to January 18, 2011 6

  6. Research Advisory Board Leanne Belgarde, Potash Corp. of Saskatchewan Dr. Susan Black, Intact Financial Corporation Trevor Ives, Peter Ballantyne Developments Partnership Ltd. Sonya Kunkel, BMO Financial Group Nicole Ladouceur, Aboriginal Affairs and Northern Development Canada Mary Jane Loustel, IBM Canada Ltd. Jennifer Morse, Aboriginal Affairs and Northern Development Canada Dr. Doug Norris, Environics Analytics Dale Sturges, Royal Bank of Canada Julie Tipene-O’Toole, Koori Business Network (Australia) Karen Young, KB Jodan Inc.

  7. CCAB thanks the generous supporters of the research: Aboriginal Affairs and Northern Development Canada

  8. Who are Aboriginal entrepreneurs?

  9. Aboriginal small businesses are diverse * Source: Statistics Canada 2006 Census

  10. Aboriginal small businesses are diverse (continued) * Source: Statistics Canada 2006 Census

  11. How are they faring?

  12. Aboriginal entrepreneurs are realizing business success 61% Net profit for 2010 35% Increased revenues 2009-2010 13

  13. They are also succeeding in ways beyond the bottom line Based on your own personal objectives for your business, how successful do you feel your business has been to date? 14

  14. They report other advantages to small business ownership Advantages of being a small business owner Top mentions 15

  15. Success is distinguished by the use of business plans and innovation 16

  16. They are creating jobs for Aboriginal and non-Aboriginal people 37% of Aboriginal small businesses have employees* On average: 62% are Aboriginal 38% are non-Aboriginal * Source: Statistics Canada 2006 Census 17

  17. What are their challenges?

  18. Heavy reliance on personal financing to start up businesses Main sources of financing used to start up your business 19

  19. Their own resources are also a main source of on-going financing Importance of current sources of financing Very or somewhat important 20

  20. Access to financing and equity are considered obstacles to growth Obstacles to growing business over next two years Top 2 box on 5-point scale 21

  21. Few have access to valuable business guidance or advice Individuals or organizations who have been particularly important in providing guidance/advice about your business 22

  22. A minority have used government programs Government programs used to start-up/maintain business 23

  23. What about EDCs?

  24. Who are they? • Small, but long-term and growing • 68% are small businesses (less than 100 employees) • 72% in business for 10 years or more • 68% report revenue of $1 million or more • 54% report revenue growth from previous year 25

  25. Community-wide benefits are part of their definition of success • “These [projects] have been very successful. And we have invested these monies into the communities – daycares, recreational facilities, radio station, poverty fund, sports. Close to $100 million has been put into this infrastructure.” 26

  26. EDCs identify two key challenges 27

  27. What does the future hold?

  28. Aboriginal entrepreneurs are optimistic about the future 71% Anticipate revenue growth in next two years 71% Likely still running business in five years 29

  29. EDCs are similarly confident about the future of their organizations 78% Anticipate revenue growth over coming year 66% Plan to increase capital investments in 2011 30

  30. Concluding Thoughts

  31. Summary • Aboriginal businesses are creating opportunities • Key challenges: • Inadequate access to financing and equity/capital • Workforce issues (EDCs) • Limited advice/guidance (private entrepreneurs) 32

  32. CCAB Recommendations Improve access to capital Provincial & municipal procurement strategies Develop & implement business plans Build stronger networks 33

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