Australia’s First Nations businesses deliver higher social impact than many businesses, while contributing more than $16 billion to the national economy each year.
A Federal parliamentary inquiry into economic self-determination and opportunities for First Nations Australians found while their businesses were significant contributors to the economy, access to finance and capital was limiting their economic empowerment and financial wellbeing.
Chair of the Joint Standing Committee on Aboriginal and Torres Strait Islander Affairs inquiry, Senator Jana Stewart, said they found the contribution of First Nations people to Australia’s economy and local communities was significant, far reaching and rapidly growing.
Senator Stewart said First Nations businesses and organisations were reported to have a higher social return on investment than many businesses working in mainstream industries.
She said for every dollar of revenue spent, First Nations enterprises created about $4.41 of economic and social value.
“First Nations businesses are 40 to 100 times more likely to employ First Nations people.
“Supported by research from the University of Melbourne, the inquiry received evidence showing First Nations businesses contribute $16.1 billion in revenue each year, pay $4.2 billion in wages, and employ more than 116,000 people.”
Senator Stewart said the inquiry also put a spotlight on the structural barriers and systemic disadvantages to economic growth that First Nations people faced.
She said evidence included reported barriers to accessing finance and capital, starting a business, scaling up a business, leveraging land for economic purposes, as well as a lack of institutional trust, negative risk stereotypes, lower accrued intergenerational wealth and commercial acumen.
“The (committee) report calls for a fundamental reframing of the First Nations economic narrative – one that embraces broader economic and fiscal policies.”
Senator Stewart said the report made 22 recommendations to the government including:
- Strengthening existing, and developing new, instruments to enhance and fast track First Nations peoples’ access to finance and capital.
- Capturing longitudinal First Nations economic and business data to support policy design and improve the institutional trust of First Nations enterprises.
- Strengthening First Nations cultural and intellectual property laws to deliver significant commercial opportunities.
- Considering capacity and capability support for First Nations communities to enable the growth of emerging industries and Australia’s economy.
- Ensuring resourcing for Prescribed Bodies Corporates in the Native Title Act 1993 is sufficient to enable delivery of their full legislated potential.
- Considering a target for First Nations project ownership and equity in clean energy.
- On completion of the Australian Law Reform Commission Future Acts Regime Review, considering whether a full review of Native Title Act 1993 (Cth) is required to deliver economic opportunities on the Indigenous estate.
