3. Estimating the Size of the Aboriginal
Market, TD Economics 2011
• $24 B in 2011 growing to $32 B in 2016
• Estimated 25,000 business entities
• An estimated 262 community economic
development corporations
• Total Aboriginal business earnings estimated at $9 B
in 2011
4. Promise and Prosperity: The Aboriginal
Business Survey, CCAB 2011
B i S CCAB 2011
• Aboriginal entrepreneurs also perceive their businesses as successful
(49% extremely/very successful vs. 9% not successful)
• The most successful Aboriginal businesses:
o Had a business plan in place in 2010 (33% vs. 19% of low-success
firms)
o Were twice as likely to have introduced new products/services or
new processes in the past three years
• Key challenge: Access to capital, more –so for on-reserve business
5. Aboriginal owned business are the best
at creating employment opportunities
i l ii
for their people
“Four in ten (38%) EDCs report that they are the major employer in their
community. Aboriginal peoples comprise, on average, 72 percent of
EDCs’ employees” from “Communities and Commerce”
Source: Community and Commerce, CCAB, 2011
• Entrepreneurs are source of employment for Aboriginal people
o Most (86%) of those with employees employ at least one
Aboriginal person
o On average, Aboriginal people comprise 62 percent of the
employees of these firms
Source: Promise and Prosperity, CCAB, 2011
6. What is important to EDC’s?
• The relationship between EDCs and their financial
institutions is considered central to their success
(84% say it is very important).
• value partnerships with Aboriginal-owned business
(64%)
• Relationships with non-Aboriginal businesses (48%)
• Many said the best management decision in 2010
was to pursue more partnerships
7. How do EDC’s support Aboriginal
business?
b i ?
• The bulk of this support comes in the form of
preferred supplier relationships and agreements
(38%),
• Many also act as mentors to local entrepreneurs,
providing guidance and advice when needed (30%)
• Provide financial assistance to allow entrepreneurs
to start new ventures or expand their services (26%)
8. Community Economic Development
Impact Benefit
Agreements
Victor Diamond Mine Manitoba H dro
Hydro
$200 M $60 M
Land Developments
Kamloops Sun River Estates
500 up-scale home
00 l h
development
9. CCAB Progressive Aboriginal Relations
“Business Development” KEY FINDINGS
Business Development KEY FINDINGS
• Preferential procurement policies
• Break down opportunities for smaller pieces of work
• Establish an Aboriginal supplier database
• Communicate opportunities
• Procurement information sessions
• Mentorship
10. Trends
• The mining sector has a strong business case and
desire to buy from Aboriginal businesses
y g
• Joint ventures are standard now for certain
businesses:
– C t ti contracting
Construction t ti
– Food and facilities outsourcing
• More Tier 1 suppliers to the resource industry
looking towards JV’s to enter new markets and
maintain market share
11. Opportunities
• Contracting: General Contractor, electrical,
mechanical, scaffolding, HVAC, etc.
• F d and f iliti outsourcing
Food d facilities t i
• Transportation
• Exploration services ie Tahl Tahn Resources
ie.
• Other services: security, custodial
• Supplies: safety, industrial
12. How To Get in The Game
• Set-up a well governed community owned
development corporation
p p
• Attend conferences and trade shows: SMA,
Prospector and Developers Association of Canada,
Canadian Institute of Mining and Metalurgy,
Canadian Petroleum Producers Association,
Canadian Aboriginal Mining Association
• Seek partners and multiple partners if possible for
any opportunity; choose the best partner
• Health and safety is #1 in the resource industry
• Get in the game early in the exploration phase and
support exploration
13. Challenges
What I hear from the resource industry:
• G
Governance of community owned d
f it d development
l t
corporations needs to be improved to flow
contracts
What I hear from First Nation proponents:
• Mapping traditional territories and activities will
improve negotiations f b
i i i for benefits
fi
• Better understanding of the mining development
life cycle
life-cycle ie. exploration