"If you build it, they will come…" These famous words now resonate within Australia's burgeoning Indigenous business sector, which is primed for unprecedented growth.
If the First Nations business sector were wholly listed on the Australian Stock Exchange, its upward trajectory would leave investors in awe. The only way seems to be up.
A recent report by Indigenous Business Australia (IBA) and the Australian National University's team of research experts lauded a growth of more than 50 per cent in five years across the Indigenous business landscape. The findings showed the economic contribution from First Nations businesses has increased remarkably over the past decade.
Approximately 30,000 Indigenous businesses operate nationwide, and the numbers are rising rapidly as demand for Aboriginal cultural experiences, products, workers, and land intensifies.
The report showcased evidence of growth in the sector through several key indicators:
2016–17: A sample of 770 Indigenous enterprises that received support from IBA generated roughly $1.2 billion in turnover, contributing $430 million to Australia's Gross Domestic Product.
2021–22: Supply Nation's registered and certified suppliers generated a record $3.8 billion from member contracts, growing 65% from the previous year. In 2023–24, this figure reached $4.6 billion, with membership surpassing 5,000 businesses.
2022–23: The Commonwealth's spend on Indigenous Procurement Policy (IPP) contracts was $1.4 billion, compared to just $6.2 million in 2012–13.
2022: Dilin Duwa's third research snapshot reported that a sample of 13,693 businesses generated revenue of $16.1 billion, paying $4.2 billion in wages to 116,000 employees.
While The Aboriginal and Torres Strait Islander Pathways Through Business report praised the sector's stronger economic contribution, it also highlighted significant challenges to expansion. The growth of First Nations businesses has outpaced non-Indigenous entities in the past five years, but capacity-building support has not kept pace.
The research illustrated that the sector's rapid expansion is hampered by limited capacity-building support, with First Nations start-ups and developed businesses challenged by access to suitable funding to meet demand. As more businesses mature, gaps are emerging in supporting business ecosystems, reducing opportunities to access the capital, business support, and networks required to sustain and build growth.
Societal bias and prejudice remain impediments across the Indigenous business cycle, hitting those at earlier stages hardest. Negative perceptions still impact policy decisions, meaning support systems are not focused on capacity building, creating significant gaps and missed opportunities.
Preventing Aboriginal businesses and the communities they operate in from transitioning from welfare-dependent to wealth creators is a lack of capacity-building support to grow and make even greater contributions to the economy and, vitally, meaningful inroads to closing gaps that governments cannot.
Former IBA Chairperson and Dagoman man from the Northern Territory, Eddie Fry, emphasised that IBA's priority over the past five years has been supporting Indigenous start-ups, as they present the greatest avenue for First Nations economic expansion, and still do.
"While we celebrate the incredible growth of First Nations businesses, work still lies ahead to expand our investment in business ideas to help make them real," Mr. Fry said.
He noted that challenges for businesses at the stabilisation and maturity phases are less about capabilities and more about expanding capacity to meet demand, with gaps in appropriate capacity-related support.
"We are building a future where Indigenous businesses thrive at every stage, exploring opportunities for sustainable growth that will create prosperity for people, communities, and the nation as a whole," he added.
"IBA stands committed to supporting First Nations people further their economic and business aspirations, with the freedom to choose how and when to access capital, knowledge, and networks," Mr. Fry said. "I am confident that with continued support and collaboration, the best is yet to come."
Access to significant capital is a major hurdle for most of the 4% of large First Nations businesses with more than 20 employees, with funding between $50 million and $100 million often unavailable through IBA or other institutions.
The report concluded that the challenges of starting a business are unique for First Nations people, with supporting policy architecture geared toward addressing capability. Policymakers often assume Indigenous business owners will have more equal access to mainstream economic resources and systems after a few years of operation—a notion the report deems incorrect.
As the global race toward net-zero emissions by 2050 intensifies, there's a significant opportunity for Indigenous businesses in the clean energy sector. Recent Net Zero Australia modelling estimated that 43% of all clean energy infrastructure required to meet this target would need to be on Indigenous lands and seas.
This generational transition should result in economic contributions from Indigenous businesses skyrocketing in associated industries and, crucially, create the intergenerational wealth that First Nations people and communities across the land need.
However, glaring inclusion gaps in Australia's strategies are impeding this low-emission approach. Enormous amounts of funding and capacity-building initiatives are needed to support First Nations involvement, with trained workforces and appropriate infrastructure required across communities and organisations that choose to take the step.
Transformative strategies will need to be implemented quickly to empower and engage First Nations people in renewables and other major sectors such as construction and health, for a level playing field to exist across the entire business landscape.