Indigenous Economic Development Outlook – A National Perspective Neil Willmett Chairman, IBCA

1. Indigenous Economic Development Outlook – A National PerspectiveNeil WillmettChairman, IBCA 5th Indigenous Economic Development Forum Darwin 13 – 14 October 2011

2. Who is the Indigenous Business Council of Australia? • Established in 2009 as a peak Indigenous business organisation • Acts as a voice for Indigenous business owners • Board consists of Indigenous business owners and a number of Chairs of Indigenous Chambers of Commerce and Indigenous Business Networks from across Australia • Focused on Advocacy & Strategic Indigenous Business Sector Development

3. Key Focus Areas • Policy and Representation  • Education and Awareness Building • Research and Strategic Partnerships

4. Indigenous Economic Development Outlook – A National Perspective

5. IED Components Indigenous Economic Development covers 3 equally important components: • Indigenous Employment • Indigenous Business • Indigenous Development Before we can discuss Indigenous economic development, we must look at the current situation

6. Indigenous Unemployment in Australia • In the 1996 Census, the Indigenous unemployment rate was 23%. • In the 2001 Census, the Indigenous unemployment rate was 20%. • The 2006 Census, the Indigenous unemployment rate was 21%. • These rates are approximately three times higher than the non-Indigenous population

7. impact of colonisation historical consequences of government policies and legislation availability of welfare numeracy and literacy poor health poor housing poor education high incarceration rates absence of employment role models absence of local economy/jobs absence of transport and/or licence willingness of employers workplace culture highly skilled newly unemployed Substance abuse Indigenous Unemployment – Multiple Causes

8. Indigenous Employment - Outlook • National crisis - Indigenous unemployment is much higher than we think it is • It is expected that rates will be much after future reforms to CDEP • We MUST address the multiple causes of unemployment – similar to how we would address a business related problem and break down each individual issue

9. Indigenous Employment - Good News • Australian economy changing. Forecasts predict that the Australian economy will pick up again in the next 18 months creating more jobs • Skill shortages can be filled by Indigenous people if training is targeted through employer directed pre-employment and training • There are jobs that are “recession proof” such as trade assistants, factory jobs, processing jobs, water and sewerage, storage, security, traffic control • Resources sector is booming and opportunities are available

10. Indigenous Business in Australia • 2006 Census Data found; • 6% of employed Indigenous people indicated they ran their own business, compared to 17% of employed non‑Indigenous people • Between 2001 and 2006 there was a decrease in the number of Indigenous people who indicated they ran their own business • Many believe that an increase in Indigenous economic participation could help close the life expectancy gap between Indigenous and non‑Indigenous people • Limited information is known about Indigenous small business in Australia. Leading academics and government agencies have acknowledged this

11. Indigenous Businesses Found in All Industries Today, Indigenous entrepreneurs are active in every industry in Australia. Most prevalent in occupations such as trades However, Indigenous entrepreneurs are now venturing into “new economy” areas that are highly knowledge-based.

12. Businesses Found in All States & Territories • Indigenous entrepreneurs can be found in every part of Australia. • NSW, QLD and VIC have the highest number of Indigenous entrepreneurs

13. Male & Females Business Owners • Entrepreneurial activity is growing for both Indigenous men and women. • Indigenous men are showing the quickest growth. • Overall, the 35-44 and 55-64 age bracket show a rapid rise in entrepreneurship in a 10 year period (100>303) (556>1014).

14. Indigenous Business Leadership • The Indigenous business sector has grown rapidly over the last 20 years due to a combination of leadership, programs and business support • There is considerable Indigenous business leadership at the State and National levels • Government have until recently worked in isolation (with goodwill) to develop Indigenous business support programs • Indigenous business leaders are now contributing to a number of programs and initiatives • Focus must be on building the capacity of these leaders and organisations so that they can provide quality information

15. Indigenous Business - What has worked? • Business support programs • Engagement with Indigenous business organisations and individual business owners • Business Awards • Business Forums

16. What is Needed • Annual reviews of Indigenous business that includes location, size and structure and economic contribution to make evidence based decisions • The establishment of more Indigenous Chambers of Commerce/Networks that can assist stakeholders with service delivery • Creating multiple ‘one stop shops’ for Indigenous business owners • Promoting individual Indigenous entrepreneurs (not just the businesses) and promoting business ownership to Indigenous youth (next generation of Indigenous entrepreneurs) • Encouraging banks to provide Indigenous business with support

17. What is Needed • Building relationships with (and the capacity of) peak regional, state and national Indigenous business organisations • Developing a targeted State/Territory ‘Indigenous Business Sector Strategic Plan’ to grow Indigenous businesses • Establishing committees to better coordinate all forms of business support • Establishing an ‘Indigenous Business Procurement Policy’ that includes agreed targets and an annual reporting frameworks on Indigenous procurement • Separating Indigenous business and Indigenous employment initiatives AND separating Indigenous business and reconciliation • Developing methodology to adequately determine economic and social contribution from your business support funding

18. Indigenous Business – New National Directions New Strategic Focus Business Skills & Capacity Building Legislation/Structural Reform Access to Contracts Integration into Supply Chains Access to Non-government Business Finance/Capital Strategic Business Alliances/Partnerships Linking Stakeholders Coordination of Policy/Overcoming Barriers Pre 2011 Focus • Business Skills & Capacity Building • Financial Support • Overcoming Isolation

19. The Future Outlook • Indigenous employment remains a major concern • We MUST address the multiple causes of unemployment • The Indigenous business sector is growing • Greater attention is required to strategically development it • This requires: • Leadership • Genuine partnerships, not tokenistic or paternalist partnerships to lead to DEVELOPMENT • more Indigenous enterprises that are commercially focused and sustainable

20. Thank Youwww.ibca.org.au