Indigenous-owned businesses are key to closing the employment gap

But one government program does seem to be helping, even though it isn’t explicitly designed to improve employment: the Indigenous Procurement Policy.

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The ConversationThe Conversation
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https://theconversation.com/indigenous-owned-businesses-are-key-to-closing-the-employment-gap-208579https://theconversation.com/indigenous-owned-businesses-are-key-to-closing-the-employment-gap-208579
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Friday, June 30, 2023
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Workforce, Employment, University, Failure, Education, Investment, ALL, Registry, University of Melbourne, Policy, Australian National University, Research, Directory, Government, Indigenous Australians, Supply Nation, National Indigenous Australians Agency, Recreation, Population, Clutch (eggs), Certification, First Nations, Program, Federation, Ecosystem, Ownership, Agriculture, Whaling, Interior design, Weaving, Mining, Private investigator, Indigenous
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AUSTRALIA, VICTORIA
Summary
Key Points: 
  • But one government program does seem to be helping, even though it isn’t explicitly designed to improve employment: the Indigenous Procurement Policy.
  • Since 2015 the federal government has required a percentage of government contracts to be awarded to Indigenous businesses.
  • That compares with a 2.2% rate among 42 of Australia’s largest corporations surveyed in 2022 for the Woort Koorliny – Australian Indigenous Employment Index.
  • Read more:
    Closing the First Nations employment gap will take 100 years

Defining Indigenous ownership

    • There are also state-based registries, such as Kinaway in Victoria, the Northern Territory’s Indigenous Business Network, and Queensland’s Black Business Finder.
    • Some argue this or even 100% Indigenous ownership should be the standard for procurement policies.
    • Not all Indigenous businesses list themselves on registries but the 3,327 in Supply Nation are a good sample size.

Small is bountiful

    • For example, a small family-owned and operated Indigenous business will be able to recruit from personal networks.
    • This helps explain why smaller businesses have a Indigenous employment rates of 52%, whereas for the largest Indigenous businesses the rate is 16%.

Profit or not


    About 93% of Supply Nation businesses are for-profit, and 7% are not-for-profit. A higher proportion of not-for-profits are located in remote areas – that likely provide Indigenous-specific community services. This also helps explain the higher rates of Indigenous employment.

Sectoral differences

    • Supply Nation businesses broadly reflect sectoral industry patterns, with some obvious differences.
    • There are more businesses in education & training, arts and recreation, and public safety and administration.

Measuring what works

    • The Indigenous Procurement Policy has contributed to this.
    • Our research is also a reminder to individual consumers as to the positive social impacts supporting Indigenous businesses can have.
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