For many Indigenous business owners, growth often hinges on access to capital. Whether seeking opportunities for acquisition, expansion, or sale, securing the necessary financial backing remains one of the biggest hurdles.
Damien Newnham, a partner with nine years at GMO Business Brokers, has extensive experience helping Indigenous entrepreneurs navigate these challenges and unlock new business opportunities.
He explains that while many Indigenous businesses have strong operations, access to funding for expansion or acquisitions can be significantly more difficult compared to their non-Indigenous counterparts.
"Many Indigenous business owners are highly skilled operators, running profitable enterprises, but the challenge is scaling up. Banks and traditional lenders still rely on rigid lending criteria that don't always align with the realities of Indigenous business ownership particularly their structure and unique relationship with key debtors," Newnham says.
This difficulty is exacerbated by factors such as limited generational wealth, lack of collateral, and complex ownership structures within Indigenous businesses, particularly those tied to community trusts or joint ventures.
Despite these challenges, Newnham emphasises that there are multiple pathways for Indigenous business owners to achieve their growth ambitions. One key strategy is leveraging business sales and acquisitions as a means of scaling up.
"We work closely with Indigenous businesses looking to expand through acquisition, whether that's buying a complementary business to increase market share or entering new industries. At the same time, we help Indigenous owners who are looking to exit find the right buyers," he explains.
He notes that private investors, joint ventures, and vendor finance agreements are playing an increasingly crucial role in bridging the capital gap. These structures allow Indigenous business owners to acquire businesses without relying solely on traditional bank loans.
Newnham acknowledges that government grants and funding programs, such as Indigenous Business Australia finance options have supported Indigenous businesses however, he argues these programs must be more accessible and tailored to real-world business growth.
As part of engaging with Indigenous sellers or buyers, GMO works alongside Tony Shaw, a Wongutha man from the northeastern goldfields of WA to provide advice and advisory services.
"Access to capital is important, but having control over financial decisions, strategy, and long-term growth is what truly empowers our people. It's not just about profit-it's about ensuring that Indigenous enterprises have the independence and capability to shape their own futures on their own terms." says Shaw
For Indigenous business owners, the key takeaway is that while access to capital remains a challenge, alternative pathways exist.
"With the right strategic approach - whether through acquisitions, private funding, or structured finance deals - Indigenous businesses can secure their financial future, drive self-determination, and create lasting economic opportunities for their communities," Newnham concludes.