Doing Business with Doing Business with Canadian Aboriginal Canadian Aboriginal

CommunitiesCommunitiesBreakfast SeminarBreakfast Seminar

Canadian German Chamber of CommerceCanadian German Chamber of Commerce

November 16, 2011November 16, 2011

OverviewOverview

• Who are Canada’s Aboriginal PeoplesWho are Canada’s Aboriginal Peoples

• Aboriginal Economic FootprintAboriginal Economic Footprint

• Challenges and OpportunitiesChallenges and Opportunities

• Overcoming Challenges through positive Overcoming Challenges through positive relationshipsrelationships

Aboriginal peoplesAboriginal peoples

• Aboriginal peoples of Canada, as defined by the Aboriginal peoples of Canada, as defined by the Constitution ActConstitution Act, 1982, comprise the Indian, Inuit , 1982, comprise the Indian, Inuit and Métis peoples of Canada.and Métis peoples of Canada.

• Each distinct group has unique heritages, Each distinct group has unique heritages, languages, cultures.languages, cultures.

• Over one million people identify as Aboriginal with Over one million people identify as Aboriginal with 2/3 North American Indian; 30% Metis; 5% Inuit 2/3 North American Indian; 30% Metis; 5% Inuit

• 45% growth btwn 1996-2006 (higher birth rate, 45% growth btwn 1996-2006 (higher birth rate, longer life expectancy)longer life expectancy)

• Fastest growing population; median age 22-25; Fastest growing population; median age 22-25; 1/3 under 15 yrs of age1/3 under 15 yrs of age

Aboriginal Population growth Aboriginal Population growth beyond National average beyond National average

Canada’s Aboriginal Canada’s Aboriginal PeopleSPeopleS

Aboriginal Economic Aboriginal Economic FootprintFootprint

• If Aboriginal communities are to prosper, they If Aboriginal communities are to prosper, they must develop viable business opportunities must develop viable business opportunities which can lead to increased Aboriginal which can lead to increased Aboriginal employmentemployment

• Combined income of Aboriginal households, Combined income of Aboriginal households, business and govt sectors is expected to reach business and govt sectors is expected to reach $32 billion by 2016 ($32 billion by 2016 (TD Economics and CCABTD Economics and CCAB))

• Aboriginal economic development corporations Aboriginal economic development corporations (EDCs) contribute about 37% to aggregate (EDCs) contribute about 37% to aggregate annual incomeannual income

• 72% of EDCs have been in operation for 10 yrs 72% of EDCs have been in operation for 10 yrs + with annual sales revenues of $5 million or + with annual sales revenues of $5 million or moremore

International Business International Business aspirationsaspirations

““First Nations recognize the growing importance First Nations recognize the growing importance of Asian markets, and the opportunity to seek out of Asian markets, and the opportunity to seek out a competitive advantage to expand economic a competitive advantage to expand economic opportunities for First Nations and all of Canada.”opportunities for First Nations and all of Canada.”

----

“ “First Nations have innovative plans for First Nations have innovative plans for community-based sustainable economic community-based sustainable economic development,” …“and we are reaching out to development,” …“and we are reaching out to partners nationally and internationally for partners nationally and internationally for opportunities that work for our peoples and opportunities that work for our peoples and communities.”communities.”

National Chief, AFN, Sean AtleoNational Chief, AFN, Sean Atleo

ABORIGINAL ABORIGINAL ENTREPRENEURSENTREPRENEURS

• In 2006, 34,045 Aboriginals self-employed (up 25%)

• Metis are largest self-employed group (almost 50%)

• First Nations are second at 45%

• Inuit have less than 2% declared self-employed

• 1/3 Aboriginal businesses provide employment 1/3 Aboriginal businesses provide employment to one or more full-time Aboriginal employeesto one or more full-time Aboriginal employees

Diversity ofDiversity of Aboriginal Businesses Aboriginal Businesses

Aboriginal Land asAboriginal Land as an Economic Asset an Economic Asset

• FN reserve lands cover almost three million hectaresFN reserve lands cover almost three million hectares

• Inuit settled land claims in the Northwest Territories, Inuit settled land claims in the Northwest Territories, Nunavut and Northern Quebec which provided Nunavut and Northern Quebec which provided monies for investmentmonies for investment• Ie.Nunavut Land Claims Agreement (1999) gave title to Ie.Nunavut Land Claims Agreement (1999) gave title to

Inuit-owned lands measuring about 350,000 km squareInuit-owned lands measuring about 350,000 km square

• Economic Development: casinos, residential Economic Development: casinos, residential developments, hotel developments, golf courses, developments, hotel developments, golf courses, industrial parks; airlines, arctic cruises, tour industrial parks; airlines, arctic cruises, tour operationsoperations

• Job creation and training opportunitiesJob creation and training opportunities

OpportunitiesOpportunities

• As Aboriginal groups gain greater control of As Aboriginal groups gain greater control of capital and resources, opportunities arise for capital and resources, opportunities arise for partnership agreements, JV’s with your businesspartnership agreements, JV’s with your business

• Access to a young, local pool of Aboriginal Access to a young, local pool of Aboriginal employees who can be trained to fill growing employees who can be trained to fill growing labour shortageslabour shortages

• Long-term business relationships that can lead Long-term business relationships that can lead to additional business opportunitiesto additional business opportunities

• Sharing information and transferring knowledgeSharing information and transferring knowledge

• Gain trust within the Aboriginal community you Gain trust within the Aboriginal community you work with and neighbouring communitieswork with and neighbouring communities

ChallengesChallenges

• Community readiness: whether there is sufficient Community readiness: whether there is sufficient financial and human capacity to engage in a projectfinancial and human capacity to engage in a project

• Educational attainment: in 2006, 41% of the Aboriginal Educational attainment: in 2006, 41% of the Aboriginal population had post-secondary certification; only 8% population had post-secondary certification; only 8% had a university degree; skills training may be requiredhad a university degree; skills training may be required

• Financing FN business on-reserve a challenge for Financing FN business on-reserve a challenge for lenderslenders

• Defects in First Nation property rights (Defects in First Nation property rights (Indian ActIndian Act))• no ownership of the lands (collectively or individually)no ownership of the lands (collectively or individually)• Fed Govt has legislative jurisdiction & mgmt over reserve Fed Govt has legislative jurisdiction & mgmt over reserve

landslands

• World economic outlook is still changingWorld economic outlook is still changing

Get to Know the Aboriginal Get to Know the Aboriginal CommunityCommunity

• Review the community’s website, read national Review the community’s website, read national and Aboriginal newspaper articles, talk to and Aboriginal newspaper articles, talk to provincial government contacts and businesses to provincial government contacts and businesses to understand local issues and help further your understand local issues and help further your objectivesobjectives

• Who is the Chief and Council: meet face-to-faceWho is the Chief and Council: meet face-to-face

• When is the next election – usually every two yearsWhen is the next election – usually every two years

• Develop a consultation plan or ask the community Develop a consultation plan or ask the community for their consultation protocols and land use for their consultation protocols and land use policies policies

Create Mutually beneficial Create Mutually beneficial business relationshipsbusiness relationships

• Balance corporate, social and environmental Balance corporate, social and environmental responsibility with prosperity for both Partiesresponsibility with prosperity for both Parties

• Use agreements to outline understandings that Use agreements to outline understandings that help to build trusting and respectful relationshipshelp to build trusting and respectful relationships

• Develop policies and protocols (together) that Develop policies and protocols (together) that respect good business practice and First Nation respect good business practice and First Nation valuesvalues

• Establish a regular meeting schedule and create Establish a regular meeting schedule and create a forum for open and honest communicationa forum for open and honest communication

Be Open and honestBe Open and honest

• Engage early, engage often (consultation) – Engage early, engage often (consultation) – directly involve First Nations at the earliest directly involve First Nations at the earliest opportunityopportunity

• Understand the uniqueness of the First Nation Understand the uniqueness of the First Nation community, and utilize the wisdom of Elders and community, and utilize the wisdom of Elders and others with specialized knowledgeothers with specialized knowledge

• Manage expectations and inform the community Manage expectations and inform the community about opportunities as well as risks of a projectabout opportunities as well as risks of a project

• Educate communities about the sector your Educate communities about the sector your company works incompany works in

• Encourage entrepreneurship and partnershipsEncourage entrepreneurship and partnerships

Resources and linksResources and links• Assembly of First Nations: Assembly of First Nations: www.afn.ca

• Metis National Council: Metis National Council: http://www.metisnation.ca/

• Metis Nation of Ontario: Metis Nation of Ontario: www.metisnation.org/

• Inuit Tapiriit Kanatami: Inuit Tapiriit Kanatami: www.itk.ca/

• Canadian Council for Aboriginal Business: Canadian Council for Aboriginal Business: http://www.ccab.com/ /

• Metis Nation Economic Dvmt Portal: http://metisportals.ca/ecodev/Metis Nation Economic Dvmt Portal: http://metisportals.ca/ecodev/

• Human Resources and Skills Human Resources and Skills Development:http://www.hrsdc.gc.ca/eng/employment/aboriginal_traDevelopment:http://www.hrsdc.gc.ca/eng/employment/aboriginal_training/index.shtmlining/index.shtml

• Aboriginal Human Resource Council: Aboriginal Human Resource Council: http://www.aboriginalhr.ca/en/homehttp://www.aboriginalhr.ca/en/home

• National Aboriginal Capital Corporations Assn: National Aboriginal Capital Corporations Assn: http://www.nacca.net/eng-splash.htmlhttp://www.nacca.net/eng-splash.html

Questions?Questions?

Patricia StirbysPatricia Stirbys

Independent ConsultantIndependent Consultant

Toronto ON M5G 0A6Toronto ON M5G 0A6

e: pstirbys@yahoo.come: pstirbys@yahoo.com

c: 647-888-1082c: 647-888-1082