Wed Apr 17

Indigenous businesses are worth billions but we don’t know enough about them

Written by Michelle Evans, Associate Professor, The University of Melbourne

Indigenous Business and Corporation Snapshot Study 3.0 cover page

Indigenous businesses generate about A$16 billion a year in revenue and employ more than 116,000 people – almost as many as the massive Coles retail group.

But the contribution of these businesses to the Australian economy has long been underestimated.

This is despite Indigenous businesses delivering, among other things, important culturally sensitive health and education assistance in remote areas, professional and technical services to the mining industry and cultural training to corporations and government.

While all this work creates income and promotes economic self-determination for business owners and their employees, much of it is done out of sight without being properly identified in government statistics.

Dilin Duwa Centre Better integrating data The Indigenous Business and Corporation Snapshot from the Dilin Duwa Centre for Indigenous Business Leadership at the University of Melbourne breaks new ground. It is the most comprehensive longitudinal study of Indigenous entrepreneurial activity undertaken, examining 13,693 businesses operating in 2022, with the potential to capture data from more businesses in the future. The snapshot integrates information from Indigenous business registries with the Australian Bureau of Statistics Business Longitudinal Analysis Data (BLADE) registry. In this year’s 2022 snapshot, the third, we have for the first time included businesses that don’t identify as Indigenous by locating sole traders and partnerships with at least 50% Indigenous owners. This is important because as sole traders and in partnerships often provide future Indigenous business leaders with their skills and trade. Identifying as Indigenous seems to help An analysis of COVID survival rates up to 2021-22 included in the snapshot found businesses that identified as Indigenous by registering on the Indigenous business registry were more likely to have survived than those that did not. This seems to be because they were larger, more likely to be located in rural and remote areas less affected by lockdowns, and had better access to the JobKeeper and in some cases better access to procurement contracts. Smaller sole traders, many of whom did not register as Indigenous, might have faced problems running a business during COVID while caring for family. These findings point to the importance of providing support for sole traders and smaller partnerships with low incomes even if they are not registered as Indigenous.

More data needed Still more work is needed to understand the Indigenous business sector. Our study provides only a partial representation because it still does not capture private and publicly-listed Indigenous companies that are not registered as Indigenous companies. The Bureau of Statistics might be able to help by providing more data on the owners of these companies. Without such information and a public profile, it is hard for Indigenous businesses to gain the recognition and trust needed to attract finance to enable growth. If COVID has taught us anything, it is that complete and readily available data about businesses helps us understand what is happening on the ground and gives us feedback on the effectiveness of support. Read more: New research shows how Indigenous-owned businesses are creating better outcomes for their employees Authors: Michelle Evans, Associate Professor, The University of Melbourne

Indigenous businesses are worth billions but we don’t know enough about them

5 Essential Tips for Hiring Gold Coast Plumbers

Hidden Costs of Moving You Need to Budget For (And How to Avoid Them)

Understanding Australian Building Regulations: What Every Mornington Builder Wants You to Know

Top 5 Home Exercises Recommended by Chiropractors for Better Posture

Simple Home Exercises to Manage Chronic Pain and Improve Mobility

Smart Renovation Tips for a Sleek, Low-Maintenance Interior

Stay Cool in Queensland: The Complete Guide to Choosing the Right Air Conditioner

Proving Partner Visas with Lawyers and Solid Evidence

The History and Philosophy Behind Osteopathic Medicine

Common Bathroom Renovation Mistakes and How to Avoid Them

5 Simple Home Modifications to Support Occupational Therapy Goals

The Cost of Converting a Shipping Container into a Liveable Space

Marriage Celebrant for Modern Lovers Who Want Something Different

Why Everyone’s Signing Up for Fitstop’s 6-Week Challenge (Again)

The Mental & Financial Benefits of Minimalist Caravan Travel

Sydney Property Lawyers: Your Complete Guide to Smooth Transactions

Electrician Perth: Your Go-To Guide for Home Electrical Safety

Why More Homes and Businesses Are Choosing an Electric Sliding Door