Australia’s Indigenous businesses are a force to be reckoned with. They generate a staggering A$16 billion in revenue annually, employing over 116,000 people – that’s nearly as much as retail giant Coles!
Despite this impressive contribution, these businesses have flown under the radar for far too long. Their impact goes far beyond just the bottom line. They provide crucial culturally sensitive health and education services in remote areas, offer professional and technical expertise to the mining industry, and even deliver cultural training to corporations and government bodies.
This economic activity empowers Indigenous communities through job creation and self-determination for business owners and their employees. The problem? Much of it happens out of sight, hidden in plain view because current government statistics don’t fully capture it.
Shining a Light on the Hidden Economy
Here’s where a revolutionary new study comes in: the Indigenous Business and Corporation Snapshot from the University of Melbourne’s Dilin Duwa Centre for Indigenous Business Leadership. This groundbreaking research, now in its third year, is the most comprehensive look at Indigenous entrepreneurship ever undertaken. It examines a whopping 13,693 businesses operating in 2022, with the potential to include even more in the future.
The secret sauce? This study integrates data from Indigenous business registries with the Australian Bureau of Statistics’ vast business data pool. But there’s more! This year’s snapshot delves deeper, including sole traders and partnerships with at least 50% Indigenous ownership – even if they don’t identify as Indigenous businesses themselves.
This is crucial because sole traders and partnerships are often stepping stones for future Indigenous business leaders to hone their skills and gain experience.
Identifying as Indigenous Matters
The study revealed a fascinating trend: businesses that registered as Indigenous were more likely to survive the COVID-19 storm. This could be because they were generally larger, located in areas less affected by lockdowns, and had better access to government support programs like JobKeeper and procurement contracts.
On the other hand, more minor, unregistered Indigenous sole traders, many of whom were juggling business with family caregiving responsibilities, might have faced a more challenging time during the pandemic. This highlights the need for additional support for these smaller businesses, even if they haven’t formally registered as Indigenous.
The Data Gap: A Hurdle to Growth
While the Indigenous Business and Corporation Snapshot offers a wealth of information, there still needs to be a gap to fill. The study doesn’t capture privately held and publicly listed Indigenous companies that have yet to register as such. Here’s where the Australian Bureau of Statistics could play a vital role by providing more data on company ownership.
Without complete data and a higher public profile, Indigenous businesses struggle to gain the recognition and trust needed to attract growth financing. As COVID-19 has shown, comprehensive data is essential to understanding economic realities and measuring the effectiveness of support programs. It’s time to shine a light on this thriving Indigenous business sector and unlock its full potential.