A new report has urged the Australian social enterprise sector to play a more active role in removing barriers to growth for First Nations businesses.
The report outlines how a number of misconceptions have created an environment that disadvantages Indigenous businesses.
The report, Addressing Indigenous Economic Inclusion in the Social Enterprise Sector, found that a conscious and unconscious perception exists that sees Indigenous businesses as being somehow 'helpless'.
It found that two key misconceptions that exist about the Indigenous economy is that Indigenous businesses aren't valuable businesses, but are viewed more as charities that are naturally small, less experienced and in need of outside help.
The report was prepared by First Australians Capital, an Indigenous-led organisation that backs First Nations entrepreneurs by providing a range of services to build resilience and access to financial capital.
It reveals that regardless of the misconceptions, Indigenous enterprises are building momentum, with the sector now growing at 12.5 per cent each year.
The report found systematic barriers to funding and resources exist through no fault of Indigenous businesses or communities.
One anonymous Indigenous interviewee noted that Indigenous businesses may fit into categories beyond social enterprises.
"Indigenous businesses have a far more deeply grounded sense of what it means, and it permeates through the culture to an even greater extent than what social enterprises may do. Of course, there are gradients to what a social enterprise is and the extend of impact and profit based on the structure of the business, but with Indigenous business there is a more consistent, authentic sense of purpose," they wrote.
"Even when times get hard there is a level of integrity to the vision and the mission, and they are humble – this is just the way they do business."
Another interviewee told the report authors that 90 per cent of their business conversations are with non-Indigenous businesses, and yet 90 per cent of their work is with Indigenous people.
"In those business conversations, we leave our Indigenous identity at the door, because in those conversations, our cultural values and our Indigenous knowledge is not valuable, they are not seen as worthy, and only our business knowledge matters. We would love to see that change, because our culture is ingrained in how we work and what our business does," they said.
The other common misconception is that Indigenous people have more money, opportunity and assets 'handed to them' than other business owners.
The report called on the social enterprise sector to actively work to remove barriers to First Nations enterprises to ensure equal participation, and to share risk and resources to ensure these businesses have an opportunity to start, grow and mature.
The responses in the report identified a need for the social sector to listen to the way Indigenous people think about social and environmental impact, apply patience and use storytelling and a community approach to work together. The interviewees recounted that the social enterprise sector would be more inclusive if these shifts could occur.
The report found that while social enterprise is a term not always accessible for Indigenous people, with Indigenous enterprises not always using terms like enterprise, entrepreneur, impact and sustainability, it is implicitly understood that an Indigenous business serves community and country.
Report participants told researchers that there is a lack of willingness for Indigenous businesses to identify as a social enterprise because of the perception the sector doesn't adequately value the role of Indigenous cultural practices and knowledge in business.
