Project INSIGHTS REPORT

Indigenous Business Centre of Excellence (IBCE) feasibility study (phase I)

Inclusive Economy, Pathways to Jobs

The Issue

There are many reasons people in the North may choose to pursue a livelihood through entrepreneurship: for example, to address an unfulfilled need in their community; to pursue opportunities outside the dominant sources of employment that are available in their local economy (e.g., in the natural resources or public sectors); or to make a living in a way that also supports them to practice and preserve their cultures and values in a changing Northern society.

small- and medium-sized enterprises also provide procurement opportunities for larger industries and, at the same time, skill building to keep the wealth in the North, lessening the dependence on southern-led industries that come and go.

Indigenous businesses are a key component to regional, provincial and territorial economies from coast to coast to coast and are continuing to grow. According to the Canadian Chamber of Commerce, the number of Indigenous business owners grew at five times the rate of self-employed people in Canada in 2020. Indigenous entrepreneurship and businesses play an especially pivotal role in supporting the economy and are crucial for economic diversification, job creation and community development in the North. As a result, there is a growing need to enhance the skills and capacity of Indigenous entrepreneurs in the North.

However, Indigenous entrepreneurs continue to face significant challenges starting and running successful businesses. Indigenous entrepreneurs often encounter difficulties securing financial capital due to systemic barriers. For those in the North, these challenges are more prevalent, as northerners have limited access to networks or resources that are essential in overcoming challenges and fostering sustainable business growth. These issues put Indigenous entrepreneurs at a significant disadvantage. 

Addressing challenges Indigenous entrepreneurs and businesses face requires a multi-faceted approach that helps improve access to financing, provides tailored business support and networks, and centres meaningful partnerships with Indigenous communities. There is a need to increase the resources and support available for Indigenous entrepreneurship, especially for those in the North. To best address this gap, approaches must be designed for and by Indigenous peoples and recognize the distinct social and cultural landscapes.

What We’re Investigating

Project administrators conducted a feasibility study to assess the viability of establishing an Indigenous Business Centre of Excellence (IBCE) at Aurora College. Aurora College is aiming to use the feasibility study to explore the need for an IBCE by developing a viable model for a two-year pilot of the IBCE. The goal of the IBCE was focused on promoting entrepreneurship as a career option for Indigenous people across the Territories. Partners wanted the centre to provide business skills training, education, mentorship and guidance for Indigenous entrepreneurs. Partners also anticipated that the centre could help create connections and contribute to best practices for Indigenous entrepreneurs in the Northwest Territories and the broader North.

The feasibility study sought to examine the need for Indigenous business development and assess the available continuing education opportunities for Indigenous communities in both the Northwest Territories and broader Northern region.   

The feasibility study focused on the following key objectives:

1. Assessing the needs and gaps: Understanding the needs of Indigenous entrepreneurs and businesses, understanding the landscape of current programs and resources in the NT, and identifying what gaps the IBCE could address. 
2. Exploring opportunities: Engaging with partners in the NT, and researching Nunavut and Yukon to identify potential opportunities for an IBCE. This involved assessing the demand and interest in supporting an IBCE across the three territories within the landscape of existing providers and identifying opportunities for partnerships.
3. Evaluating business centre models: Examining existing Indigenous business centres and entrepreneurship support models that align with the needs and opportunities in the NT and the broader North. This included financial analysis to assess capital startup and operational costs, and to identify potential funding.
4. Engaging stakeholders: Engaging with community through focus groups, surveys, letters of support and key informant interviews to gather input and inform the project deliverable. Also, an advisory committee primarily comprising Indigenous representation provided direction and recommendation on engagement with community and stakeholders. 
5. Assessing next steps: Evaluating the feasibility of moving forward with the IBCE as part of the transformation of Aurora College to a polytechnic university. Exploring possible next steps and considering a proof-of-concept model for a two-year pilot IBCE, including scoping out potential third-party funding sources.

What We’re Learning

The IBCE would be operationally viable, but would need to pivot
Based on the research and engagement activities conducted, the study found that the IBCE would be operationally viable. The study recommended a hybrid model with a central office within Aurora College. Further considerations are needed about governance, power structures and decision-making authority to ensure Indigenous voices are centred. From a funding perspective, $350,000 in startup capital and $2.3 million in operational funding for the two-year pilot would be required. However, the scope of the IBCE would need to pivot significantly from its original proposal to better serve the needs of Indigenous businesses and entrepreneurs. 

The IBCE must not duplicate resources
The study identified that there are many existing programs, training opportunities, and resources available to Indigenous businesses and entrepreneurs in the Northwest Territories. As a result, there is low demand for new supports or programs. Duplicating services that are already provided by other organizations may not increase accessibility and could potentially harm the viability of existing programs. Adding the IBCE to the market could create increased competition to secure funding and participants. However, there remains a gap in the ability for Indigenous entrepreneurs to access these existing supports. The IBCE needs ways to collaborate with other partners, add value to existing programs and pivot to a more strategic role as a connector. This would allow the IBCE to address the gaps without directly competing with established programs.

Further meaningful engagement with Indigenous communities is needed
While Aurora College engaged Indigenous communities throughout the process, there was a need for further engagement with Indigenous communities and centring of Indigenous voices. The partner outlined key elements to ensure Indigenous voices were present. They developed an advisory committee composed of primarily Indigenous knowledge holders and subject matter experts to guide the study. They also developed an engagement strategy to gather information on needs and wants for the IBCE with Indigenous communities. However, the partner outlined that there were challenges during the engagement. For instance, the partner outlined difficulties when collecting survey responses from Indigenous communities, as survey response rates were low. Of the survey respondents, 45% self-identified as Indigenous and only 21% were entrepreneurs and business owners. The partners noted that relationship building takes time and recognized that further work is needed to better engage with Indigenous communities. They also highlighted the need to better engage with Indigenous governments and organizations.

Indigenous businesses and entrepreneurs need Indigenous business and entrepreneurial training
The needs of Indigenous entrepreneurs are unique. To ensure the success of the IBCE, the design and delivery need to be culturally relevant and community driven. Indigenous entrepreneurs place a greater emphasis on social impact and community well-being with their work. Indigenous entrepreneurs not only aim to generate personal wealth but support their communities through how their businesses function. Much of the time, government-delivered resources modify their existing entrepreneurship programs to attempt to fit the needs of Indigenous entrepreneurs. These programs often use colonial approaches to program design and delivery. As a result, these programs are not grounded in Indigenous approaches and have limited success in meeting the needs of Indigenous entrepreneurs. It is critical for the IBCE to take a more holistic approach to skill and capacity building by recognizing the value of Indigenous knowledge and cultural practices, and supporting mental health and social well-being.