Supply Nation chief executive Kate Russell says the Indigenous business sector still faces numerous challenges to be sustainable despite enormous growth over the past decade.
Her comments in the supplier diversity group's 2024 annual report released this month come despite Supply Nation surpassing 5000 members last year, one of several recent significant achievements of the organisation.
"Supply Nation is just as relevant now as it was 15 years ago," the proud Awabakal woman said.
"Aboriginal and Torres Strait Islander businesses face numerous challenges in developing a more equitable business environment.
"Our priority is to continue to deliver outcomes for our members and suppliers across Australia. This must result in real, positive impact to them and the communities they serve."
The 2023-24 reporting year saw Supply Nation complete 997 new approvals for Indigenous Business Direct.
The number of Supply Nation members – from corporate, government and not-for- profit organisations – continued to grow, with more than 800 new entities, an average increase of 25 per cent annually.
The procurement spend hit $4.6 billion, $500m higher than the previous year, while 284,864 contracts were awarded, the biggest at $91m.
Members with the greatest increase in procurement spend compared to 2021-22 came from the mining industry (increased from $673m to $1.3 billion) and construction (increased from $730m to $996m). Other sectors with increased spend included facilities management, energy, and financial and insurance services.
Other highlights included a collaboration with CommBank, one of Supply Nation's founding members, to build knowledge and capability of business owners in accessing capital and financial products to support business growth.
A memorandum of understanding with WeConnect and Social Traders to drive greater outcomes for the Indigenous economy, women-owned businesses and social enterprises across Australia were also signed.
Ms Russell said it had been a tough year for many after the the Voice referendum in late 2023, along with demanding economic conditions and cost of living pressures.
"Despite these challenges, we have seen Aboriginal and Torres Strait Islander-owned businesses continue to thrive," she said.
In the 2023-24 reporting year, Supply Nation enabled $4.6 billion in procurement spend between our members and suppliers, exceeding $ 4.1b the previous year, while a new national Indigenous Business Direct database was implemented.
"It was also pleasing to see that approximately a third of these businesses are owned or led by women," Ms Russell added.
The International Programs Team from Supply Nation engaged new partnerships and information sharing with First Nations businesses and organisations across Canada, the United States and Aotearoa/New Zealand, including a partnership agreement with Amotai, the leading supplier diversity organisation for Māori and Pasifika businesses, which was agreed and signed in 2023, and hosting international delegations from Aotearoa and the United States to the Connect 2023 event held on Gadigal Land.
A trade mission to the US in October 2023 also gave unique perspectives on how Supply Nation could add value to broader endeavours and commercial partnerships between First Nations businesses.
Supply Nation delegates attended the National Minority Supplier Development Council (NMSDC) Conference in Baltimore, with an MOU resulting, while the Australia-United States First Nations Trade Roundtable in the Australian Embassy in Washington led to bilateral commitments to foster First Nations trade.
In 2008, a submission to the House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs recommended a supplier diversity initiative - based on a United States model - be established in Australia, leading in 2009 what was eventually to be known as Supply Nation.
In its first year, Supply Nation facilitated $300,000 of procurement spend with 13 Indigenous businesses.
The Indigenous Business Direct database now lists more than 5,000 verified Indigenous businesses, and in 2023 procurement spend from members (corporate, government, non-profit organisations) totalled $4.6 billion.
Other key findings included: from 2009 to 2023 - Supply Nation facilitated more than $20 billion in procurement spending between corporate, government and not-for-profit members and verified Indigenous businesses; the number of Indigenous suppliers grew at 41 per cent per annum; and the number of Supply Nation members grew at 25 per cent per annum.
