Fresh research has illustrated the rapid expansion and diversity of Indigenous businesses across Australia.

The findings from Indigenous Business Australia's latest report also found First Nations start-ups and those already developed were both challenged by access to suitable funding to meet demand.

The Aboriginal and Torres Strait Islander Pathways Through Business report highlighted the sector's growth of more than 50 per cent from 2016-2021, with opportunities aplenty to expand.

Findings from the IBA and the Australian National University's specific First Nations research team of Indigenous and non-First Nations experts found the sector had grown remarkably over the past decade.

IBA chairperson and Dagoman man from the Northern Territory, Eddie Fry, believed the findings would give stakeholders a deeper understanding of the Indigenous business sector's growth opportunities and impact on First Nations people and communities.

"As we celebrate the incredible growth of First Nations businesses, we also recognise the work that still lies ahead to expand our investment in businesses ideas to help to make them real," he said.

"We are building a future where businesses thrive at every stage, exploring opportunities for sustainable business growth that will create prosperity for people, communities and the nation as a whole.

"I am confident that with continued support and collaboration, the best is yet to come."

The report indicated there is growing evidence of big businesses and industries taking notice and working with Aboriginal and Torres Strait Islander businesses.

"However, some negative perceptions continue to impact decisions by policy makers and people in positions of power, which reduce the inclusivity of Australia's business, financial, and economic structures," the report found.

"At the stabilisation and maturity phases, the challenges are less about capabilities and more about expanding capacity, to be able to either increase demand or have the capacity to meet demand."

Available support systems were less focused on capacity building, with a gap in capacity-related support for businesses.

"IBA commits to ensuring First Nations people further their economic and business aspirations with the freedom to choose how and when to access capital, knowledge, and networks," the report found.

"It is evident from this research that this choice should be available to all First Nations businesses, despite their maturity.

"In this way, IBA can assist existing businesses to propel themselves towards achieving their full social, cultural, environmental, and economic potential."

Key findings found the Indigenous business sector grew more than 50 per cent from 2016 to 2021, reaching approximately 29,200 businesses.

IBA supported about 19 per cent of the sector (5,515 businesses) over five years, contributing to 56 per cent of the overall growth in business ownership during that period.

While First Nations business ownership rate (4.4 per cent) has grown rapidly over the past 15 years, a gap remained with non-First Nations business ownership rate (8.5 per cent).

"If rates were the same in 2021, there would have been an additional 26,900 First Nations business owners," the report found.

The report found societal bias and prejudice continued to impact business owners across the business cycle, hitting those at earlier stages hardest.

Although Indigenous women were the fastest growing business demographic, they were less likely to access support, representing 36 per cent of the business sector in 2021, up from 33 per cent in 2016.

The Pathways Through Business report can be found online.