What Does Indigenous Owned Business Mean?

Canada’s GDP is approximately $2 trillion, with over 50,000 Indigenous-owned businesses contributing an impressive $48.9 billion to the economy. 

Indigenous investment refers to financial activities where Indigenous communities or organisations actively participate in economic ventures, typically through equity ownership or partnerships in various industries such as infrastructure, energy, and resource development. This type of investment aims to empower Indigenous groups by providing them with direct control over projects that impact their lands and resources, often ensuring that economic benefits flow back to the communities involved.

Building trust with Indigenous Businesses
Source: https://www.edc.ca/en/article/building-relationships-with-indigenous-businesses.html

What is an Indigenous-owned Business?  

An Indigenous business is defined as a company that is at least 51% owned and operated by Indigenous individuals, which includes First Nations, Métis, and Inuit peoples in Canada. These businesses can operate in various sectors, including retail, construction, tourism, natural resources, and technology, among others. 

Identifying Indigenous Businesses 

Identifying whether a business is Indigenous-owned involves both quantitative and qualitative criteria. Understanding the full scope of what constitutes an Indigenous-owned business is crucial to ensuring that procurement opportunities and financing are genuinely beneficial to Indigenous businesses. 

To qualify as an Indigenous-owned business, the following documentation must be provided as evidence: 

Quantitative Criteria - Evidence of Indigenous Identity 

• Indian Status Card 
• Inuit Beneficiary Card 
• Northwest Territories Land Claim Settlement Beneficiary 
• Confirmed Alberta Métis Settlement Member 
• Northwest Territory Métis Nation Citizenship 
• Métis Nation citizenship: This must be affirmed through the registry of a Métis National Council Governing Member, which includes: 
• Manitoba Metis Federation 
• Métis Nation Saskatchewan 
• Métis Nation of Alberta 
• Métis Nation British Columbia 
• Métis Nation of Ontario 
• Non-Status Indians: Verification can be obtained through a First Nation Citizenship or Membership Code, or by providing a written confirmation of heritage from elected First Nation leadership. 

This comprehensive documentation ensures the recognition of Indigenous ownership and reflects the diverse nations and identities across Canada. 

Qualitative Criteria  

Indigenous businesses must undergo a rigorous certification process to validate their authenticity. This process will require them to: 

• Demonstrate their Indigenous heritage and expertise by providing relevant documentation and testimonials. 
• Prove their active involvement in the business operations through detailed records of their contributions. 
• Dispel any doubts about contrived structures designed to benefit non-Indigenous partners by presenting transparent business arrangements. 
• Ensure equitable financial benefits for Indigenous parties involved in the business, including revenue sharing and contract terms. 

These qualitative criteria aim to establish the legitimacy of Indigenous businesses. Given the diverse nature of Indigenous communities and their businesses, a flexible and adaptable certification framework is essential. An independent Indigenous-led certification body should be established to assess businesses against these criteria and make informed decisions on their authenticity. 

In response to alleged schemes where non-Indigenous companies pay Indigenous-identifying individuals to pose as owners or use Indigenous-owned businesses as fronts to exploit the Procurement Strategy for Indigenous Business (PSIB), there has been a pressing need for stricter guidelines to verify the authenticity of businesses. These measures aim to ensure that PSIB benefits are directed to legitimate Indigenous enterprises. 

The Canadian Council for Indigenous Business (CCIB) has established a certification programme to authenticate Indigenous-owned businesses. This programme ensures that certified businesses are not only majority-owned but also actively managed and controlled by Indigenous individuals, safeguarding the integrity of Indigenous entrepreneurship.

Map of the Canada

Types of Businesses 

1. Indigenous Sole Proprietorship

An Indigenous sole proprietorship is a business wholly owned by an Indigenous individual. This person is fully accountable for decision-making, benefits from all profits, bears any losses, assumes the associated risks, and is responsible for paying personal income tax on earnings. 

2. Indigenous Corporation (For Profit)

An Indigenous corporation is structured so that at least 51% of its shareholders are Indigenous individuals, groups, or organisations. This ownership stake ensures that Indigenous people retain a controlling interest in the company, allowing them to influence its operations and direction. 

3. Indigenous Non-Profit Organisation

In an Indigenous non-profit, the board of directors comprises at least 51% Indigenous members. The primary aim of the organisation is to enhance the well-being and quality of life of Indigenous Peoples through various initiatives and programmes. 

4. Indigenous Charitable Organisation

An Indigenous charitable organisation must also have a board made up of at least 51% Indigenous directors. Its mission is to provide tangible benefits to Indigenous Peoples and communities, addressing needs that are recognised as charitable under the law. 

5. Indigenous Cooperative

An Indigenous cooperative is a business model in which the voting members must collectively include at least 51% Indigenous individuals. This structure encourages collective ownership and democratic decision-making among the members. 

6. Indigenous Partnership

In an Indigenous partnership, the agreement specifies that the Indigenous partner(s) hold at least 51% ownership of the business. This ensures that they enjoy the majority of the economic benefits and maintain significant control over management and operations. 

7. Indigenous Joint Venture

An Indigenous joint venture is established with the understanding that the Indigenous partner(s) possess relevant industry expertise and hold at least 51% ownership. This arrangement allows for shared resources and skills while ensuring that the Indigenous partners receive the majority of the economic advantages and management authority. 

These diverse business structures reflect the commitment of Indigenous communities to foster economic growth while maintaining control and benefiting their members. 

Federal Funding Initiatives for Indigenous Entrepreneurs 

In Canada, several federal funding programmes are designed to boost Indigenous entrepreneurship and business development. These initiatives aim to provide vital resources and support to Indigenous communities, promoting economic growth and self-sufficiency. 

1. Indigenous Growth Fund 

2. Aboriginal Entrepreneurship Programme 

• Access to Capital: This stream offers non-repayable contributions to support eligible business proposals, allowing entrepreneurs to leverage additional funding. 

• Access to Business Opportunities: This stream provides funding to national Indigenous organisations to cultivate an entrepreneurial culture, improving access to business opportunities and enhancing the overall capacity of Indigenous enterprises. 

3. Indigenous Skills and Employment Training Programme 

4. Business Reconciliation in Canada Guidebook 

Understanding what defines an Indigenous business is vital for creating investment opportunities that genuinely support Indigenous communities. The diverse structures of these businesses, from sole proprietorships to joint ventures, ensure that Indigenous individuals have control and receive economic benefits. By investing in Indigenous businesses, we can promote economic growth while honouring the unique cultures and traditions of Indigenous Peoples in Canada.

The Canadian Indigenous Investment Summit

The Canadian Indigenous Investment Summit serves as a crucial platform where investors, visionary leaders, and Indigenous communities can share a common business goal. The focus is not only on gathering for one event, but on building a fruitful partnership and creating a movement that unites all investment sectors to promote sustainable economic growth.  

The summit offers valuable resources and insights through our team of subject matter experts across various sectors, facilitating access to meaningful Indigenous investment opportunities throughout Canada. Whether you're an investor or eager to deepen your understanding of Indigenous investment, we provide a platform for impactful discussions and the exchange of valuable insights. With a diverse array of investments converging, we ensure that attendees of the summit will benefit from a seamless and efficient business environment.  Register your interest and save a spot at the summit. 

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