Indigenous businesses generate $42.6b in social value a year

AU Financial Review

2 days ago

Supply Nation was founded on the premise that self-determination and improved social outcomes can be achieved by supporting Indigenous-owned businesses through procurement.
Economic empowerment is a catalyst for social empowerment, improving financial security, standards of living, health, education and overall wellbeing.
This is a model that promotes inclusion over exclusion and prosperity over dependence.
Our latest research report The Sleeping Giant Rises confirms that Indigenous-owned businesses are generating significant economic and social value for Australia.
This pioneering study reveals that Indigenous businesses generate $42.6 billion in social value each year – value that benefits Indigenous business owners, Indigenous employees and their households.
Social value refers to the positive changes measured through an Indigenous lens of wellbeing. This includes increased agency, expanded aspirations, financial security, pride, health, as well as stronger connections to community, culture and country.
While many Indigenous businesses do give back, through formal or informal means, there should not be an expectation or assumption that they are all philanthropic.
Our research demonstrates that even without social or community elements, these businesses are creating economic and social value purely by being in business.
The outcomes are powerful: 95 per cent of respondents feel proud of who they are, 89 per cent are more able to express their culture, and 86 per cent say young people in their family have more pride in their culture.
Of the survey respondents 78 per cent confirmed that as a result of running a business young people in their family are more positive about their future career options.
Research by the University of Melbourne found that the Indigenous business sector contributes around $16 billion to the economy, employs 116,000 people, and pays $4.2 billion in wages.
Supply Nation's research reinforces these figures and provides evidence that for every $1 generated by an Indigenous business, $3.66 in social and economic value flows back into the Australian economy.
This is powerful empirical evidence that can't be ignored.
Supporting Indigenous-owned businesses leads to measurable outcomes that close gaps.
Additionally, Indigenous corporations, organisations and traditional owners are contributing real and quantifiable value to the health of our economy through land and sea management, carbon farming, habitat renewal, fire abatement and renewable energy projects.
We welcome Prime Minister Albanese's recent announcement at Garma Festival committing to an economic partnership agreement with the First Nations Economic Empowerment Alliance and the Coalition of Peaks.
But to realise the full potential of this agreement, we need the support of business.
Tomorrow marks the beginning of Connect 2025 Australia's largest and longest running event showcasing the Indigenous business sector.
Held at ICC Sydney, this two-day event will feature more than 270 Indigenous exhibitors and welcome over 4000 corporate and government representatives, international delegates and community leaders seeking commercial, cultural and trade opportunities.
Opening with the Knowledge Forum, business owners, procurement experts, entrepreneurs, academics, and advocates will engage in essential conversations on the current state of the sector, its successes and challenges.
These discussions will explore proposed changes to the federal government's Indigenous Procurement Policy (IPP) and the definition of an Indigenous business.
Supply Nation has long advocated for the definition of an Indigenous business to be 51 per cent or more Indigenous owned, managed and controlled.
Panel sessions will also focus on traditional knowledge systems, disruptive and innovative technologies, structuring long-term partnerships, and access to capital and financial services.
Supply Nation now has more than 850 corporate, government and non-profit members committed to supporting the growth of Indigenous businesses through procurement.
Our national database, Indigenous Business Direct, now lists over 5800 verified Aboriginal and Torres Strait Islander suppliers, representing every sector of the economy.
These commercial partnerships between our members and suppliers deliver economic empowerment and real progress in closing gaps.
This year's Connect theme is Beyond the Horizon. Thousands of us will gather on Gadigal Land to celebrate the progress of a premise, chart bold new pathways and elevate pride in country, community and culture.
I invite all Australians to look beyond the negative narratives, beyond the myths and support the rising Indigenous economy. Corporate Australia has played a significant role, but there is still so much opportunity for partnerships and sustainable growth.