In conversation with Laura Berry, CEO Supply Nation on the rapid growth and demand for Indigenous owned businesses.

1. ContentsAboriginalParticipation
OJ Please share with our readers the
details of your ancestral family background.
I proudly identify with my Aboriginal (Wiradjuri)
and Italian heritage. My father was a proud
Wiradjuri man, born in Central-West NSW. My
mother, Italian Australian. I was born and raised
in Canberra.
OJ You have quite an impressive resume
with over two decades of experience in
stakeholder management, risk mitigation
and reputation management. Your career
has spanned the private and public sectors,
including Federal and State Politics, Public
Affairs and positions with top ASX Listed
companies. How did you come to take on
the role of CEO at Supply Nation?
I have been working with Supply Nation
since its inception back in 2009 — firstly as
a member through my role within Leighton
Holdings and Qantas and later as a board
director.
The concept of supplier diversity as a driving
force in developing economic power for
Indigenous people intuitively made sense to
me – my father owned his own landscaping
business, and like any small business, our family
was highly attuned to the vagaries of cash flow.
This was long before any government policies
like the Indigenous Procurement Policy. But
all that changed when he won a government
contract. Suddenly he had guaranteed cash
flow. He could plan, he could grow. It made an
enormous difference to our whole family.
So I’ve seen first-hand how supporting
Indigenous businesses makes a real difference.
When the Chairperson of the Supply Nation
board approached me about applying for the
CEO role, I was excited to give it a go — to roll
up my sleeves and help achieve Supply Nation’s
vision of a vibrant, prosperous and sustainable
Indigenous business sector.
OJ In September 2018, you were listed
as one of ‘The Australian Financial Review
100 Women of Influence’ and joined a host
of women to rise to positions of influence.
How has your journey been since you were
recognised by the Financial Review?
September doesn’t seem like that long ago! I
guess the most significant difference is that as a
women leader, I’m being recognised and that’s
flowing on to the organisation and what we’re
achieving. It’s such an honour to be recognised
amongst so many incredible, successful
women. It’s an excellent opportunity to build my
connections and network further to help drive
even further success. The AFR 100 Women of
Influence Alumni is strong and supportive.
OJ What were the influential factors that
gave birth to the inception of Supply Nation?
Supplier diversity isn’t a new concept — it was
born from the civil rights movement in the US in
the 1940s. They founded the National Minority
Supplier Development Council (NMSDC) that
still runs today. There are over 45 years of
data illustrating the business benefits (to the
procuring organisation) of a diverse supply
chain.
Supply Nation was patterned after the NMSDC,
but the impetus to bring it into being didn’t
happen in isolation: our founding in 2009 was
a response to a specific set of circumstances
which drove a renewed focus on Indigenous
economic affairs. Following the Mabo decision
in 1992, the Council of Australian Governments
published their “National Commitment to
INDIGENOUS BUSINESS DIRECT
SUPPLIER DIVERSITY AND PROCUREMENT
Omesh Jethwani, Government Projects & Programs Manager in-conversation with Laura Berry,
CEO Supply Nation on the rapid growth and demand for Indigenous owned businesses.
Indigenous Business Advisory Group 2018
BUILDING INDIGENOUS BUSINESS
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Improved Outcomes in the Delivery of
Programs and Services for Aboriginal
Peoples and Torres Strait Islanders.” In
1993, the first National Indigenous Business
and Economic Conference (NIBEC)
conference was held in Alice Springs, as
part of a national springboard bringing
Indigenous business and economic affairs
to the forefront of government thinking.
Over the next few years, many Indigenous
business leaders worked together to identify
the best way to support Indigenous business
growth.
In 2008, The House of Representatives
Standing Committee on Aboriginal and
Torres Strait Islander Affairs held an inquiry
into Indigenous Economic Development
which published a report of its findings
called, “Open for Business”. This report
recommended to the Federal Government
that an Australian Indigenous Minority
Supplier Council (AIMSC) be established to
follow the US model (NMSDC).
The Federal Government announced it
would invest $3 million to pilot the Australian
Indigenous Minority Supplier Council (AIMSC)
over three years in 2009. On 15 September
2009, AIMSC was officially launched at the
Mural Hall in the Australian Parliament House
in Canberra, and in 2012, after completing the
pilot, AIMSC rebranded as Supply Nation.
OJ Is Supply Nation a not-for-profit entity
and is the organisation funded by the
Commonwealth Government?
Yes, Supply Nation is a not-for-profit
organisation. We have also recently been
granted deductible gift recipient (DGR) status
by the Australian Tax office and are a registered
charity, so people can make tax-deductible
donations to support our cause. Supply Nation
derives the majority of its funding from non-
government sources. Today, approximately a
quarter of our revenue is from the Government
– in ten years we’ve managed to reduce our
reliance on government funding significantly.
The remainder of our income is generated
through membership fees and fee-for-service
work.
OJ Who are members of Supply Nation
and what is Supply Nation’s national role
in Australia’s business landscape?
Supply Nation was founded with 32
members. Since then the organisation’s
membership has grown to over 400 of
Australia’s largest organisations, including
governments at all levels (federal, state
and local) and some of Australia’s most
recognisable brands — including most tier
1 building and construction companies.
Supply Nation continues to work towards
our vision of creating a prosperous, vibrant
and sustainable Indigenous business sector
not just through our work with our members
(supporting them to develop their supplier
diversity programs and engage Indigenous
suppliers) but also through influence on
federal and state government policy. Supply
Nation also works with industry peak bodies
like the Business Council of Australia to
shape policy and drive the benefits of a
diverse supply chain.
OJ In the last five years, has there been
an increase in Aboriginal businesses in the
Building and Construction Industry?
The whole Indigenous business sector has
grown exponentially in the last five years. The
Federal Government’s Indigenous Procurement
Policy has hard targets of 3% of all contracts
to be awarded to Indigenous business,
as well as the minimum requirements for
Indigenous employment and / or Indigenous
supplier use, and the mandatory set-asides
for contracts either in remote areas or based
anywhere between the value of $80,000 and
Laura Berry presenting at Connect 2018.
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$200,000. These all impacted the building and
construction industries. For major projects
over $7.5 million such as infrastructure
projects, there are mandatory requirements
for Indigenous employment and Tier Two
contracting.
The launch of this policy in July 2015 has driven
enormous growth in the sector, with 461 (over
26%) of businesses on Indigenous Business
Direct reporting that they work in building
and construction. 17% of our reported spend
from our members has been in building and
construction and, the Federal Government
have spent around 40% of their over $1 billion
spends over the last five years with Indigenous
businesses in the building and construction
sector.
In addition, various state and territory
governments either have or are in the process
of following suit with their own state-based
Indigenous procurement policies. The
NSW Government also has their Aboriginal
Participation in Construction (APIC) directly
targeting construction.
OJ What is Indigenous
Business Direct?
Indigenous Business Direct
is Supply Nation’s publicly
accessible directory of
Indigenous businesses.
It’s the largest national
database of Aboriginal and
Torres Strait Islander owned
companies in Australia
and is mandated by the
Federal Government as
their first point of call when
searching for suppliers.
With sophisticated
searching and matching
functionality, users can find
Indigenous businesses by
sector, service, product
or keyword; and filter by
location. In addition, Supply
Nation members receive access to enhanced
gated content to provide more context when
shortlisting, saving and sharing their lists.
OJ How does Supply Nation ensure the
quality of a business which is listed on
Indigenous Business Direct?
Supply Nation has a rigorous five-step
verification process that ensures that every
business in our directory is Indigenous owned.
Our process is globally recognised and based
on decades of experience from around the
world. We do not vouch for the capability
of individual businesses and stress that all
applicable procurement processes should be
followed as for any contract with any company.
OJ In October 2018, the Department of
Prime Minister and Cabinet announced
changes to the Indigenous Procurement
Policy Joint Venture Registration (IPPJVR)
which took effect from 1 January 2019.
What are some of these new changes
and what impact will it have on business
entities?
The new changes to Joint Venture Registration
have tightened up the requirements around
which joint ventures are eligible under the
IPP. The main difference is that Incorporated
Indigenous joint ventures must register with
Supply Nation and be at least 50% Indigenous
owned, managed and controlled. There are
additional requirements to demonstrate how the
JV will build the capacity and capability of the
Indigenous partner.
Supply Nation welcomes this change as it
strengthens the requirements on the Joint
Venture partners and reinforces our value
proposition that any business on our directory is
a verified Indigenous business.
OJ How will the IPPJVR impact on
contracts with Indigenous joint ventures that
are 25% Indigenous owned?
Indigenous joint ventures that are 25%
Indigenous owned will no longer qualify for
engagement of Commonwealth contracts under
the Indigenous Procurement Policy.
OJ What documentary proof is required to
demonstrate compliance for registration as
a joint venture?
Incorporated Indigenous Joint Ventures
must provide a range of documentation to
demonstrate Aboriginality or Torres Strait
Islander heritage of the owners and managers;
governance documentation and operational
plans. For more information, please contact
Supply Nation.
OJ What criteria must a joint venture meet
to become and remain registered with
Supply Nation?
Under the new guidelines, to become registered
with Supply Nation, a JV must meet and
maintain all requirements including ownership,
control and management and other elements
specified in the IPPJVR. For more information,
please contact Supply Nation.
OJ How does a joint venture demonstrate
commercial independence?
To be Commercially Independent, there
is a range of requirements that a JV must
demonstrate. The aim of this is to ensure that
the JV does reflect a true collaboration between
the parties.
OJ How will Supply Nation verify the
application for registration as a joint
venture?
In verifying an application for registration as an
incorporated joint venture, Supply Nation will
follow its world-leading five-step verification
process which has been reviewed and
approved by the Federal Government to provide
a definitive judgement about the status of the
JV.
OJ Why become Supply Nation Certified?
Is there a difference in being Supply Nation
registered and Supply Nation Certified?
Supply Nation is the only verification body in
Australia that provides two levels of verification:
Supply Nation Registration and Supply Nation
Certification.
To become registered, a business must
demonstrate that it is at least 50% owned by an
Aboriginal and/or Torres Strait Islander person.
To become Supply Nation
Certified, a business must
demonstrate a higher level
of Indigenous ownership (a
minimum of 51%) in addition
to showing that Indigenous
people manage and control
the business. The business
owner is interviewed to
ensure that they can
demonstrate management
and control of the company.
In addition to random or spot
audits, every business on
Supply Nation’s directory is
audited annually.
OJ What are the mutual
business benefits of
joint ventures between
Indigenous and non-
Indigenous construction companies?
There is a range of benefits that accrue to both
the Indigenous and non-Indigenous partners in
a joint venture in the construction sector which
has driven these new requirements. It allows the
Indigenous construction company to access
opportunities under the IPP for which they
may not previously have had a chance to bid;
helps support capacity and capability building
and provides opportunities for increased and
enhanced employment outcomes.
OJ What do you think are some of the
ongoing challenges and barriers faced
by Indigenous businesses? Are there
any specific industries where Indigenous
companies may meet higher challenges and
obstacles?
Aside from the challenges faced by all
businesses as they grow and scale, Indigenous
businesses also face additional challenges and
barriers unique to the sector.
Common challenges we see with our members
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(the buying organisations) when they are
building supplier diversity programs include the
assumptions that are made about Indigenous
businesses – that they only operate in the
cultural, performance or arts sectors; or that
they are all small and based in remote areas;
or that they can’t be expected to compete with
the big end of town in terms of quality, service
and price.
There are amazing cultural, performance
and arts businesses — but there are also
cryogenics, construction, consulting, cleaning
and climbing gear companies. Some
Indigenous companies are small — but some
are winning some of the most significant
government contracts being put to tender.
The majority of Indigenous businesses aren’t
based in rural and remote areas — in fact, the
similarities with the broader Australian business
sector are more striking than the differences.
The challenge of changing
ingrained organisational
processes to allow more
Indigenous businesses ‘a seat
at the table’ is real. The cultural
competency of the organisation
makes a huge difference: when
the skills exist to do business
well, typically the organisation is
more able to engage Indigenous
enterprises to and develop
rich and rewarding business
relationships. In addition, the
same skills that are necessary
to create diverse supply chains
also help build and nurture
diverse teams — with all the
benefits that flow on from them.
In addition to the buyer-side challenges,
Indigenous people face other challenges within
their business. With a lack of access to inter-
generational wealth, finding the funds to grow
and scale business can be challenging. With a
lack of networks that many business owners
gather through a lifetime of education and
inter-generational networking, many Indigenous
people lack coaches, mentors and role models
in the business.
OJ How would you respond to cynics who
suggest that some Indigenous businesses
are just a sham; established to secure an
‘easier’ pathway to Government contracts;
that perhaps only a token presence of
indigenous people on the board legitimises
the business?
Supply Nation’s reputation rests on our
verification processes. We have verified the
ownership of every single business that is
live in our directory — checking percentage
ownership and the Indigenous heritage of
each owner. If a question about a company is
brought to our attention, we immediately de-list
the business from our online directory pending
a full audit process.
The practice of having an Indigenous ‘figure-
head’ is often called “black cladding” — and
it’s something we consciously test for and
have designed our world-leading verification
processes to weed out.
So if you want to be sure the Indigenous
business you are engaging is legitimate, search
for them on Indigenous Business Direct. If
they’re not there, encourage them to register —
it’s free and only takes a few days to process at
our end after they complete a ten-minute online
process and upload some documentation.
OJ There is an ongoing debate with
differing opinions about the various
terminology references on Government
tenders, Government policies and
Government agreements. To create
certainty, how would you describe the
following:
a. NSW Aboriginal Participation in
Construction Policy – this policy applies
to any tier 1 contractors winning NSW
State Government contract in the
construction sector. They must adhere
to a minimum of 1.5% participation
target (participation being employment
and procurement). More information is
available here: https://www.procurepoint.
nsw.gov.au/system/files/documents/
apic_policy_june_2018_final.pdf
b. NSW Aboriginal Procurement Policy
(APP) – this policy aims to award for at
least three per cent of the total number
of domestic contracts for goods and
services issued by NSW Government
agencies by 2021 to Aboriginal
businesses. More information available
here: https://www.procurepoint.nsw.gov.
au/system/files/documents/app_policy_
may_2018.pdf
c. Commonwealth Indigenous Procurement
Policy – this is the Federal Government’s
Procurement Policy launched in 2015
which has three main parts:
• A target number of contracts that need to
be awarded to Indigenous businesses
• A mandatory set-aside for remote
contracts and contracts valued between
$80,000 - $200,000
• Minimum Indigenous participation
requirements in contracts valued at or
above $7.5m in certain industries.
• More details here: https://www.pmc.
gov.au/indigenous-affairs/economic-
development/indigenous-procurement-
policy-ipp
d. Indigenous Enterprise: For the Federal
Government’s Indigenous Procurement
Policy, an Indigenous enterprise is at
least 50% owned by Aboriginal or Torres
Strait Islander people. ALL businesses
listed on Supply Nation’s Indigenous
Business Direct comply with this
definition.
e. Inclusive Procurement – this is another
term for supplier diversity (our preferred
term) which describes a procurement
process that consciously leverages
spending strategically in the supplier
selection process - evaluating and
including diverse suppliers.
f. Social Procurement – this is a term
that values the
social impact of
the procurement
process – whether
that is employment
or environmental
and therefore drives
procurement from
social enterprises or
suppliers that can
demonstrate positive
social effects.
g. Supplier
Diversity – broadly
this describes a
procurement strategy
that minimises risk
by actively creating a diverse supplier
base (using businesses that are
minority-owned) in the procurement of
goods and services for any company
or organisation. In Australia, the term
is more commonly used to describe
the procurement strategy to include
Indigenous owned businesses in an
organisation’s supply chain.
OJ Indigenous businesses are more
likely than non-Indigenous businesses to
employ Indigenous Australians. However
Indigenous companies are not participating
in Government contracting opportunities
at a level comparable to non-Indigenous
businesses. Do you agree with the statement?
Research does show that Indigenous
businesses employ other Indigenous
Australians at up to 100 times the rate of
non-Indigenous businesses. So, engaging
Indigenous companies is a great way to
impact employment for Aboriginal and Torres
Strait Islander people positively. Indigenous
people make up around 3% of the Australian
population, but only own 0.5% of Australia’s
businesses — so there’s a significant
discrepancy there.
The Federal Government’s target in the
IPP mirrored population stats — in that it
mandates 3% of contracts going to Indigenous
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businesses. We know that this has been
achieved — and exceeded. However, this is
3% of the number of contracts rather than
the value of contracts — which is why there
is also a target on Indigenous employment by
head contractors. There is still a tremendous
opportunity here!
OJ What advice would you give to
organisations working with Aboriginal
businesses in the Building and Construction
Industry?
I think the most critical piece of advice is to be
aware that there are Aboriginal and Torres Strait
Islander suppliers in the construction industry
from small to large, some capable of delivering
large projects as a primary contractor.
Other than that — I’d recommend looking
to engage Indigenous businesses early on
in the project — consider the procurement
opportunities on projects and look for suitable
companies at an early stage. You may find that
you can break down procurement into smaller
packages if it’s challenging to find Indigenous
suppliers that can service large work packages.
Look for networking opportunities such as
Meet the Supplier events, Trade Fairs, or our
flagship event Connect (held this year on 8/9
May in Sydney), as a way to meet Indigenous
suppliers. Businesses can conduct opportunity
analyses and invite suitable Indigenous
business in to be briefed on the opportunity or
opportunities, the tendering process and pre-
qualification process.
Part of building the segment includes providing
opportunities to develop capacity and capability
in your suppliers so that they can take on
larger pieces of work down the track. So, get
in touch with us at Supply Nation if you’re not
already a member. Each member is allocated a
dedicated relationship manager who can work
with companies to set policy, procedures and
targets and communicate these throughout
their organisation so that people know why and
how to engage with Indigenous businesses!
OJ Non-Indigenous building and
construction organisations who have
successfully been awarded Government
projects in regional NSW are struggling
to source Aboriginal builders and
subcontractors. How can these
organisations be further assisted?
Australia is in the midst of a construction
boom and, as contractors try to fulfil their IPP
obligations, there is a lot of competition for both
Aboriginal subcontractors and skilled / unskilled
labour. This is particularly exacerbated in
regional areas where there isn’t the always the
Indigenous businesses to meet the demand.
Is it also a question of supplier capacity and
capability? Are there enough Indigenous-owned
businesses and skilled/semi-skilled workers to
fulfil the requirements of large-scale government
jobs, particularly in regional areas?
This could be an opportunity for primary
contractors to proactively identify suitable
Aboriginal-owned businesses pre-tender phase
and then work with them to develop capacity
over time.
It could also be an opportunity to explore Joint
Ventures with an Indigenous business either
directly or with their existing sub-contractors.
Failing this, in NSW the APIC policy identifies
four types of eligible spend for Aboriginal
participation. Contractors have the option of
approaching Aboriginal participation a little
more creatively by considering some of these
options to help boost their performance. The
four types of participation are:
• Through employment - including apprentices,
trainees, office support roles and labour-hire
• Through the engagement of Aboriginal-owned
businesses to provide related goods and
services to the project. This might encompass
raw materials, cleaning and maintenance, on-
site catering or professional services
• Through education and training
• Through engagement / consultation
OJ What exciting events or projects can we
expect from Supply Nation in 2019?
Its Supply Nation’s tenth birthday year, so
there will be a few celebratory events over
the year. Connect 2019 is looking like being
the biggest on record, and we have some
exciting new digital developments coming that
will provide additional support and insights to
help the sector grow! We’re also excited to
be announcing some ground-breaking new
partnerships – stay tuned!
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