Indigenous Business Leaders Talk Economic Development, Opportunities and Optimism

By 2024, Indigenous businesses are expected to contribute more than $100 billion each year to Canada's gross domestic product, according to statistics cited by the Canadian Council for Aboriginal Business (CCAB). Currently, or at least before the pandemic took a heavy toll on Canada's economy overall, that number stands at around $30 billion annually.

This growth forecast is supported, in part, by the fact that Indigenous businesses are being created in Canada at nine times the rate of non-Indigenous businesses, the CCAB says. As well, governments, corporations, shareholders and consumers are putting environmental, social and governance (ESG) concerns in the spotlight – which includes partnering with Indigenous communities.

"We're seeing this real rise in corporations who just want to understand how they can be part of supporting the Indigenous economy, which is a real point of optimism," said Tabatha Bull, President and CEO of CCAB, during a recent panel discussion hosted by Canadian Club Toronto, a not-for-profit forum for the discussion of public affairs.

Joining Bull on the panel were Clint Davis, CEO of Nunasi Corporation, an Inuit development company in Iqaluit; and Matt Jamieson, CEO of Six Nations of the Grand River Development Corporation (SNGRDC), which invests in renewable energy and infrastructure projects on and around Indigenous territory.

The three spoke about opportunities and innovation within First Nations, Inuit and Métis communities, touching on the themes of resilience, perseverance, persistence, partnership and growth. Here are some of their insights.

Improving Relations with Indigenous Communities

To organizations hoping to work with and support Indigenous businesses, Bull said to look beyond partnerships alone – examine employment practices, procurement policies, community relations, and leadership actions such as offering business mentoring and student scholarship programs.

"Any business that is going to build any infrastructure across this country is going to need to have a relationship with Indigenous communities and businesses if it's going to go forward," she added.

The CCAB has a certification program called Progressive Aboriginal Relations, or PAR, which guides companies in the development and implementation of Aboriginal relations initiatives. Companies receive a level of certification based on their performance – Gold, Silver or Bronze – signalling their commitment to creating prosperity in alignment with Indigenous community values.

Just as some investors put a focus on environmentally safe and sustainable investments, investors want to understand how companies support Indigenous communities and businesses, noted Bull. Similarly, Indigenous communities are starting to show interest in companies that achieve PAR certification. "Those organizations are going to be rewarded," said Bull. "Not just from Indigenous communities, but from Canadian consumers and investors across the country."

Indigenous Business Innovation and Partnerships

As Indigenous economic projects scale up, this requires forging business partnerships with other Indigenous and non-Indigenous organizations, said Nunasi Corporation's Clint Davis. "Companies coming in and saying… 'We're told to talk to you.' Yeah, don't do that. That's just horrible. If you are forced to speak with us, then we don't want to speak with you… We don't have to be a reference in a glossy annual report."

There are times Indigenous communities look to their non-Indigenous partners for resources and expertise, said Davis, “but don't think we're going to be passengers." Indigenous stakeholders add real value on the legal and strategy fronts, among others, taking an active role in developing corporations for the benefit of shareholders, he added. “We're not sitting around just waiting for a dividend cheque."

When it comes to accessing equity financing, innovative projects may face challenges because they don't yet have a track record of success or a "quote-unquote bankable" financial model, SNGRDC's Matt Jamieson noted. That requires partners, especially large corporations, to be flexible and creative in their approach as financial partners, he said.

A recent SNGRDC project is the Oneida Energy Storage (OES) Project – an inventive solution to store excess wind and solar energy in a battery facility. This will reduce the need to build new energy plants and maximizes utility, "so that we don't have to go and disrupt the environment and cut down further trees or disturb Mother Earth," he added.

Six Nations of the Grand River launched its development company in 2015 with the aim of separating business from politics. This strategy has proved successful. Within the past six years, the corporation has helped develop assets valued at over $100 million. The core mandate is "to achieve economic self-sufficiency – without compromising our values," Jamieson explained.

Pending approvals, construction on the OES project is scheduled to begin this summer. It is anticipated to reduce Ontario's greenhouse gas emissions by 4.1 million tonnes over two decades, which the Canada Infrastructure Bank has said is equal to taking 40,000 cars off the road each year.

SNGRDC is the lead developer of OES Project, and its partners include private capital, Canada Infrastructure Bank and Hydro One. "You have all of these components that come together… it's the evolution of Indigenous economic development 2.0," said Jamieson.

Economic development is a key part of Canada's future and our country's reconciliation journey. "It's clear Indigenous economic development is not only an integral component of reconciliation, but also an important driver of Canada's future economic prosperity," said Dave McKay, Royal Bank of Canada's President & CEO, in the bank's 2020 Indigenous Partnership Report, A Chosen Journey. "As Canada works toward economic recovery this year, it is critical we take an inclusive approach to how this is achieved. Indigenous business owners and entrepreneurs in Canada will be vital to this effort." Find the full 2020 report, and RBC's 2021 Indigenous Partnership Report, at rbc.com/indigenous.