Supporting Indigenous businesses to grow

I recently spent some time at home on Awabakal Country, on Western Lake Macquarie. Each evening I’d take my 5-year-old on a walk around the lake that nourished our ancestors for generations.

“To me, this reinforces the deep commitment of our members to the products and services being delivered by our deadly businesses. It also demonstrates the value being delivered by Indigenous entrepreneurs.”

There are signs of my ancestors everywhere around the bush, lakes and rivers including caves and middens that were used for tens of thousands of years.

I wish all Australians could take the opportunity to connect with Country and appreciate the deep traditions, songlines and wisdom contained within it and its peoples.

For many Australians, Indigenous or not, we have special places that nourish us and guide reflection, thinking and ultimately the decisions we make.

We have connection to Country. It can connect us all in ways that create understanding and inclusiveness.

It can inform our values and ideals and how we make decisions in our professional and business lives that impact the natural and built environments, as well as the communities in which we operate.

I was privileged to take over as CEO of Supply Nation about 12 months ago. Since our beginnings in 2009, we work to connect thousands of verified Indigenous businesses with corporate, governments and non-profits across Australia in need of goods and services.

This month, Indigenous Business Month, the theme is “Making our Mark” and Aboriginal and Torres Strait Islander-owned businesses are doing just that.

We welcome the renewed focus on economic empowerment and recognition of the role Indigenous businesses play in jobs growth and the prosperity of all Australians.

In the 2023-24 financial year Supply Nation facilitated over $4.6 billion dollars of procurement spend from our members into Indigenous businesses, families and communities.

In a year when the cost-of-living crisis presented enormous challenges, Supply Nation’s corporate, government and non-profit members increased their collective spend by more than $500 million.

To me, this reinforces the deep commitment of our members to the products and services being delivered by our deadly businesses. It also demonstrates the value being delivered by Indigenous entrepreneurs.

Unique challenges

In our experience many successful Indigenous-owned businesses and entrepreneurs start with a “Profit for Purpose” model.

While an overwhelming majority of Indigenous businesses give back to Country and Community, either formally or informally, we must be mindful that Indigenous businesses have no more obligation for philanthropy than any other business.

We should not expect an Indigenous entrepreneur to do more than what we would of a non-Indigenous business.

It would be misguided not to appreciate the specific and unique challenges that face Indigenous businesses: conscious and unconscious bias, the absence of a level playing field when accessing capital and low “brand awareness” when it comes to their achievements and commitment to good service.

On the anniversary of the Referendum, we have much to reflect on. It has been a tough year for many, marked with disappointment, change and disruption.

But we are resilient, and so are our businesses. Part of this resilience is driven by cultural pride and this month; we have a lot to be proud of.

The Indigenous business sector is growing. According to recent research from Melbourne’s Dilin Duwa Centre for Indigenous Business Leadership, it generates over $16 billion in revenue, pays $4.2 billion in wages and employs around 120,000 people.

Research by the Australian National University (ANU) reinforces Supply Nation’s own findings that Indigenous businesses are more likely to employ Indigenous peoples, even though they may not have the resources to put into formal employment programs.

Directly or indirectly, Indigenous businesses impact the families and communities that surround them.

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In September, Supply Nation marked our 15-year anniversary after being established by the Rudd government in 2009. The model was conceived as a three-year pilot program with an initial upfront investment of around $3 million.

In our first year of operation, $300,000 in procurement spend was delivered to our small cohort of founding Indigenous suppliers.

Let me be clear here, this was not a handout or a “leg up”.

Those businesses delivered quality goods and services to governments and companies to allow them to function efficiently, grow and expand.

Supply Nation measures what our corporate, government and non-profit members spend with Indigenous businesses.

The original $300,000 has now grown to over $4.6 billion. In anyone’s language, that is a good return on investment.

Each year individual member organisations spend hundreds of millions of dollars on Indigenous businesses because they see the value they create, the quality products and services they provide and the incredible diversity of the sector.

Our research paper Legacy: Supply Nations 15-Year Anniversary Report outlines the headline statistics.

Over that time we have facilitated almost $20 billion in procurement spend from Australian corporates, governments, and other not-for-profit organisations to verified Indigenous-owned businesses.

In July the 5000th supplier joined our Indigenous Business Direct database, with numbers growing steadily.

Membership milestone

Arnya Consulting, is a female-led, regional business supporting digital services for community. In many ways it represents a new wave of Indigenous businesses and one that I’m excited to see mature.

Our database is accessible to anyone looking to source products and services from verified Indigenous-owned businesses.

Our verification processes are rigorous and supported by the Federal Government. We recognise two levels of Indigenous business ownership.

The Federal definition of ‘Registered’ - 50 per cent or more Indigenous ownership which caters for equal partnerships with non-Indigenous owners.

We have our own intellectual property and definition of ‘Certified’ Indigenous businesses - 51 per cent or more Indigenous owned, managed and controlled.

We have long advocated for a change to the Federal definition as we believe it will ensure opportunities go to true Indigenous businesses where Indigenous parties are actively involved in the business and decision-making processes.

Reaching 5000 suppliers is a significant milestone. But additionally, about a third of our verified business are owned or led by women. That is something worth celebrating.

Indigenous-owned businesses are active in all sectors of the economy, in traditional sectors such as food & beverages, the creative industries and agribusiness. But also in construction, fleet management, cryogenics, cybersecurity, renewable energy and aerospace. 

Some of these firms employ hundreds of people, others are ‘Mums and Dads’ working in their spare room. The Indigenous business sector is not one size fits all.

A walk around our annual Connect trade event illustrated the excellence on display from over 220 diverse and resilient businesses. Enough to challenge any misconceptions about the sector.

This year, in Meanjin for the first time, more than 4000 people attended Connect, where deals were done, connections made, and black business was celebrated.

Our number of corporate, government and not-for-profit members now exceeds 820. Including partners such as ANZ, which is committed to supplier diversity and procurement from Aboriginal and Torres Strait Islander businesses.

Increasingly, organisations like ANZ are considering how they can support Indigenous businesses other than procurement. They are asking how else they can build the capability and capacity of the sector.

Our sector is growing but we rely on allies and advocates to help us reach our potential. I invite you to join us in making business a force for change and contributing to real positive impact. Every individual can make a positive difference.

If you have access to a corporate budget, consider how you can engage Indigenous businesses. If you don’t, why not consider purchasing your presents for the festive season from our upcoming catalogue. If things are tight, you can mentor an Indigenous business through our Jumpstart program.

No matter what your position or circumstance, there’s an opportunity to get involved and support the Indigenous business community.

I am certain that once you discover the diversity and resilience of our businesses, you too will become a staunch advocate for the deadly Indigenous business sector.

Kate Russell is CEO at Supply Nation