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Indigenous Business Australia (IBA) released its Aboriginal and Torres Strait Islander Pathways Through Business report on the growth and diversity of the Aboriginal and Torres Strait Islander business sector.
IBA partnered with the Australian National University’s (ANU) Office of the Vice-President, First Nations, to undertake the study. The research, led by a team of both First Nations and non-First Nations experts, offers a detailed look at the sector's remarkable expansion over the last decade and highlights opportunities for continued growth.
Key findings of the report identify industry representation, gender representation, proportion of businesses at various stages of the lifecycle, and future opportunities, as well as the barriers to further growth.
The Aboriginal and Torres Strait Islander business sector grew over 50% from 2016 to 2021, reaching an estimated 29,200 business owner managers.
IBA supported about 19% of this sector (5,515 businesses) over five years, contributing to 56% of the overall growth in business ownership during that period, which goes to show IBA’s significant role in supporting the sector’s expansion.
While the First Nations business ownership rate (4.4%) has grown rapidly over the past 15 years, a gap remains with the non-First Nations business ownership rate (8.5%). If rates were the same in 2021, there would have been an additional 26,900 First Nations business owners.
IBA supports First Nations businesses through the entire business lifecycle with access to workshops, finance and business support. The report noted that as more businesses are reaching maturity, gaps are emerging in the supporting business eco-system, which is reducing the opportunity for First Nations people to access the capital, business support and networks they need to sustain growth and maximise impact.
The report finds that societal bias and prejudice continues to impact Aboriginal and Torres Strait Islander business owners across the business cycle but hitting those at earlier stages the hardest.
Although Aboriginal and Torres Strait Islander women are the fastest growing business demographic, they are less likely to access support. First Nations women represented 36% of the business sector in 2021, up from 33% in 2016, partly due to initiatives like IBA’s Strong Women Strong Business. However, they currently make up only 31% of IBA business loan customers.
IBA Chairperson Eddie Fry, a Dagoman man, welcomes the research and believes the findings in the report will lead to a deeper understanding of the business sector's growth and development as well as its incredible impact on Aboriginal and Torres Strait Islander people and communities.
“As we celebrate the incredible growth of First Nations businesses, we also recognise the work that still lies ahead to expand our investment in businesses ideas to help to make them real.
“Together, we are building a future where Aboriginal and Torres Strait Islander businesses thrive at every stage, exploring opportunities for sustainable business growth that will create prosperity for people, communities and the nation as a whole.
“I am confident that with continued support and collaboration, the best is yet to come.”
IBA will be joined by business customers from Yarn Legal and Kennelly Constructions to discuss the report on 7 November 2024. To attend the event, register here.
The Pathways Through Business report is the second in the ‘Pathways’ series which IBA released. The Pathways Through Housing report was launched in early October at the Housing First Nations conference in Meanjin (Brisbane).
Read previous media release: IBA Media Release: Research into pathways through housing.
Read the Pathways Through Business report
Media contact: Katie Hoskins 02 9207 6361 or katie.hoskins@iba.gov.au
