This text is part of the special section Indigenous Development
The Indigenous economy generates more than $30 billion and is expected to triple in the coming years, according to the Royal Bank of Canada (RBC). But First Nations and Inuit entrepreneurs still have to overcome several challenges. Portrait of the situation.
“Indigenous peoples have always been people of commerce. This is how we lived for several generations. We exchanged our gifts for those of other nations,” summarizes Naomi Sarazin, executive director of Pow Wow Pitch. This non-profit organization supports indigenous entrepreneurs through a collaborative platform. They also work in very varied industries, explains the one who is part of the Algonquin First Nation of Pikwàkanagàn.
In Quebec, the economic growth of First Nations has experienced significant growth, notes the general director of Tourisme Autochtone Québec, Dave Laveau. According to the member of the Huron-Wendat community, “we are seeing more and more indigenous communities present, particularly in the energy development of Quebec, whether it is hydroelectricity or wind power. These are areas of the economy where we were almost absent not so long ago.”
Greater growth
RBC reports that the number of Indigenous entrepreneurs is growing five times faster than the rest of the self-employed in Canada.
Mr. Laveau is not surprised by these figures. In Quebec alone, in tourism, there were 103 indigenous-owned companies in 2003. In 2016, this number increased to 223. “We are very optimistic of reaching a number of 300 by 2027,” he rejoices. .
“On the ground, more and more Indigenous people are trained, equipped and qualified. This means that there are more people creating businesses, but also more employees, professionals, technicians to work in these same businesses. And this, whether private or community,” he believes.
However, establishing and maintaining these organizations comes with its share of challenges. Remember that under section 89 of the Indian Act, property located on a reserve is exempt from seizure.
“And this is what has significantly delayed the development of indigenous businesses,” said Mr. Laveau. Therefore, banks, credit unions and traditional lenders are more reluctant to offer financing due to this law. “They are cautious, of course, for a question of risk management,” illustrates the general director. However, he recalls the creation of institutions such as indigenous commercial credit societies. “They come with different glasses and different understandings. This is what explains, in my opinion, that today we are a little better equipped,” believes Mr. Laveau.
Mme Sarazin agrees. Elsewhere in the country, obtaining capital to start a business remains the main challenge. She points out that Pow Wow Pitch organizes a competition every year for indigenous entrepreneurs. They can win several cash rewards, including a grand prize of $25,000 to support them in their project.
Businesses close to communities
For meme Sarazin, the greatest impact of indigenous businesses is on their families, who can thus provide for the needs of their loved ones and their community. “These entrepreneurs create employment opportunities so that people can work on their project.” For the general director, the indigenous economy also makes it possible to build bridges between indigenous and non-indigenous people. “By encouraging indigenous peoples and entrepreneurs, there is this economic reconciliation. And you support authenticity. »
If the notion of entrepreneurship generally comes with that of profit, Aboriginal people pay more attention to the non-economic effects of their initiative, observes Mr. Laveau. “Being at the service of the community is the recipe for the indigenous economy,” he believes. These elements are part of the reasons why we are experiencing strong growth, because it is for the benefit of something else. »
Sustainable development, circular or social economy, these concepts have already been at the heart of the priorities of indigenous communities for a long time, underlines Mr. Laveau. Practices that now influence other companies.
“We are no longer at the stage where we should be inspired by the First Nations or their philosophy. I think we are in action. In social and environmental matters, the question of sustainable development is now part not only of public discussions, but also of plans, decisions and changes made by governments. And that brings us back to indigenous DNA. »
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