The good news on Indigenous business

There are a couple of certainties about many attitudes to Indigenous policies and programs. The first is the tendency to highlight problems and ignore successes and what works. The second is that a key lens for analysis is often welfare-based rather than business- based.

A new report from the Dilin Duwa Centre for Indigenous Business Leadership at the University of Melbourne paints a dramatically different – and very encouraging picture. In their latest report they find that “The Indigenous business and corporation ecosystem is a major employer of Aboriginal and Torres Straite Islander people nationally. In 2021-22 it is estimated to employ 135,733 people nationally, 46,718 are Aboriginal and Torres Straits Islanders. This represents around 13% of the working age (25-64) Aboriginal and Torres Strait population, or 20% of the employed population on the 2012 Census night.”

The research is undertaken in partnership with the ABS, Indigenous business custodians, Melbourne Business School and others. Most importantly it shows that while some business encouragement policies are invaluable – just as they are in non-Indigenous businesses – Indigenous businesses are winning contracts on their own strength and track records.

The contribution, nevertheless, is significant even while it is less than 1% of all trading Australian businesses. In particular Indigenous businesses are 12 times more likely to employ an Aboriginal and Torres Strait Islander worker than a non-Indigenous business. Around one in three workers are Aboriginal and Torres Strait Islander compared to 1 in 46 outside. In case anyone leaps to conclusions about the significance of this it is rather similar to the patterns of employment sources and outcomes in many whitefella businesses.

In terms of employment within the ecosystem 54% is with Indigenous business (sole traders and partnerships) and 46% with Indigenous Corporations. The health care and social assistance sector is the largest employer with more than 11,000 jobs (23% of employment in the ecosystem).

In the administrative services there are 6525 jobs; 4271 jobs in professional, scientific and technical services; 4,429 in public administration and safety and 3,900 in construction.

Significantly 65% of the jobs are performed by people in rural and remote areas which provide opportunities for people to work on Country.

Employers in the Indigenous business and corporation sectors pay their workers around 7% more on average – partly due to some workers being more likely to be employed full-time.

While there is an Indigenous Procurement Policy in place there is a weak relationship between business-level IPP spend and Aboriginal and Torres Strait Islander employment.

The report says businesses that win no contracts under the IPP employ 44% of all Aboriginal and Torres Strait Islander employees and the top 5% most successful businesses employ 2% of all the Aboriginal and Torres Strait Islanders in the eco-system. In contrast with rural and remote areas Aboriginal and Torres Strait Islander employment is high in urban areas.

Nevertheless, there is evidence that the IPP introduction has opened up new opportunities for the ecosystem to access Commonwealth contracts. In 2008-2015 the number of contracts more than doubled from 3,589 per year to 8,197. From 2008-15 to 2016- 2019 they trebled to 287 to 802.

In dollar terms after the introduction of the procurement scheme there was a 21% increase in average annual spend and overall the average annual number of contracts won by Indigenous business and corporations more than doubled after the introduction of IPP.

It has been a valuable and successful program but the report nevertheless stresses that Indigenous businesses and corporations are not highly reliant on the IPP and are often highly competitive in winning open tender contracts.

Dilin Duwa Centre for Indigenous Business Leadership is a key research commitment of the broader aims of the Centre. It works with Indigenous Chambers of Commerce, Supply Nation, Indigenous Business Australia, the ABS and the many smaller registries of businesses operating across Australia.

Unlike many business studies it doesn’t overlook the power of poetry in communication. It says: “Dilin Duwa is Woi Wurrung for Everlasting Flow. In the spirit of generative flow of waters, the research stream of Dilin Duwa is symbolised by the dewy spider web handing over the flow if the yalk (river) here now a snapshot in time. Research captures knowledge, structures if for communication, and like a spider web it is intricate, strong and flexible. Over time, outlines give way to new knowledge, new interpretations and new ways.”

 


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