A first-of-its-kind research project has revealed that Indigenous businesses contributed at least $4.88 billion to the Australian economy in the 2018 financial year, an increase from $3.64 billion in 2012.
The Indigenous Business Sector Snapshot 1.0 provides an overview of the economic power of Indigenous businesses, using data pooled from the Australian Bureau of Statistics (ABS) and numerous custodians of Indigenous business data to form the Indigenous Business Longitudinal Analysis Data Environment (I-BLADE).
Its content can measure the sector’s scope and offers policymakers comprehensive data to identify and focus on areas that need the most assistance, closing a blind spot that has hindered the potential growth of Indigenous businesses.
Head of the University of Melbourne Indigenous Business Research Group and research lead, Associate Professor Michelle Evans, said for the first time, comprehensive evidence has quantified the Indigenous business sector’s economic strength, providing insights into its social and cultural impact in Australia.
“This research is truly unprecedented. It shows us that Indigenous businesses bring not just significant economic impact, but far more. They contribute employment and deliver services to Indigenous communities including health and education services in a culturally sensitive manner that is essential for ensuring trust and accessibility of service for Indigenous people that rely on them,” Associate Professor Evans said.
“They also often punch above their weight when compared to non-Indigenous businesses in terms of size, employee numbers and higher wages. On top of that, the sector is growing more quickly.”
The study examined data from financial year 2006 to financial year 2018. Over that time there was a 74 per cent increase in the number of Indigenous businesses, 115 per cent growth in gross income, and more than 22,000 jobs created – a 100 per cent increase.
In 2018, gross income for the sector was $4.88 billion, more than Australia’s beer industry ($4.3 billion).
Among other findings, the research notes ‘the importance of the mining sector in supporting Indigenous business growth over the last 12 years’.
Chief Executive Officer of the Minerals Council of Australia, Tania Constable, said diverse Indigenous businesses deliver high-quality goods and services to mining projects, operations, and corporate offices across Australia.
“Indigenous businesses are a critical part of the mining supply chain, providing goods and services as varied as construction and earthworks to labour hire, consumables and professional services,” she said.
“Based on deep engagement with local and national leaders, the minerals industry was among the first sectors to establish specific Indigenous procurement targets, policies and programs.”
Ms Constable said economic partnerships go beyond procurement programs to include tailored employment, training and career development pathways.
“Today, Aboriginal and Torres Strait Islander people make up approximately 3.8 per cent of the mining workforce – a higher proportion than any other sector.”
Ms Constable added that the minerals industry is committed to working harder with First Nations landholders and communities, including to increase supply and procurement from Indigenous businesses.
“The MCA congratulates the Indigenous Business Research Group on its pioneering research, and looks forward to supporting its future work. The group’s research is integral to deepening understanding of the depth, diversity and contribution of the Indigenous business sector-leading practice Indigenous procurement programs,” she said.
