9 minute read
All You Need to Know Indigenous ACE
How First People’s Economic Growth Fund is
Empowering Canadian Indigenous Entrepreneurs?
More than 20 years ago, Joella Hogan started her Indigenous firm, Yukon Soaps Company, in Canada. With this venture, she thought of combining her passion for getting in touch with the people from her community, elders, her language, with the world. She asked elders and children to collect rose petals and juniper berries for producing her soaps. Most of her products are taken by tourists as Yukon souvenirs.
Like Hogan, there are numerous other examples of successful Indigenous people who tried to make it big as an entrepreneur. Today, Indigenous people are coming up with new businesses at a rate of five times more than the non-Indigenous communities. And these businesses are already worth billions. As per a report by Statistics Canada, there are more than 19,000 businesses that are located in the Indigenous communities, which generates more than $10 billion as yearly revenues together. Apart from generating revenues for their owners, the Indigenous-led businesses have a huge impact on the community by providing them with essential goods and services, along with creating several jobs. Today, at least one in three Indigenous businesses in Canada have created employment for the common people.
Indigenous businesses are actually motivated by their revenue. However, they also love the fact that they have a kind of environmental footprint and an impact on the local communities. Several women Indigenous entrepreneurs identify themselves as ‘ creators ’ . They see their company as a creative outlet and a way of meeting the requirements of their communities. A lot of these women entrepreneurs make use of “traditional knowledge or cultural expressions in their business ” . Also, a lot of them are innovators and exporters of new services, products, and processes.
Like several other small-scale businesses in Canada, even the Indigenous businesses were heavily impacted by the global pandemic. They faced huge disruptions in their supply chain management, with a dip in revenues, and an increase in the need for working capital for covering their overall operations costs. Businesses in industries like retail, tourism, and resource supply chain were hit badly by Covid-19. The shutdown of several casinos also eliminated a vital source of revenue and employment for a lot of First Nation communities.
The Indigenous business communities are already in an economically disadvantaged position. They face unique challenges almost every single day. And all of these obstacles have hindered their growth, and they have found it pretty difficult to sell their products and services to the global marketplaces.
Key Challenges Faced by the Indigenous Businesses in Canada
Here is a gist of the challenges that most of the Indigenous businesses in Canada are facing due to global disruptions related to the pandemic.
· Poor Access to Working Capital
This is the central issue for most of the Indigenous businesses in Canada. Most of them do not have a good relationship with traditional banks. Also, they often face institutional bias as they are often seen as a higher risk. These businesses often lack the collateral needed to get loans and credits. Even though some have assets, it gets tough to secure a loan through them.
· Remoteness of Communities
Be it in Nunavut, Northern Ontario, Labrador, or the Northwest Territories, the remote location of the Indigenous businesses often creates several problems. Sometimes it gets tough to ship goods. It is also logistically difficult to ship goods if there are no proper roads, highways, or airports nearby. Even without a reliable network connection and proper internet services, staying connected gets difficult. Making communication with suppliers, customers, and financial institutions is often troublesome.
· Deprived Socioeconomic Status
Most of the Indigenous entrepreneurs aren
’t welleducated. Their education level is lower than the average Canadians, with just a few having university degrees. The Indigenous Peoples account for around 30% of Canada ’ s federal prison population. Also, of all the women incarcerated federally, approximately 42% are Indigenous. Ironically, the small Indigenous businesses are generally run and owned by women. On average, the Indigenous entrepreneurs have lesser financial resources and have a small base of assets for collateral compared to the non-Indigenous businesses. This makes it hard for Indigenous businesses to access the working capital needed for growth and sustainment.
Conclusion
Keeping every single aspect listed above in mind, and in response to the global pandemic, the First Peoples Economic Growth Fund (FPEGF) is striving to deliver the Emergency Loan Program to the Indigenous businesses in Canada. This is termed the Indigenous Business Stabilization Program (IBSP) and is given on behalf of the Government of Canada. FPEGF has approved a little more than $2.0 million for the businesses that were severely impacted by Covid-19.
Additionally, when the pandemic first hit, FPEGF deferred all the loan payments for 6 months. Also, the company extended loan payment deferrals to some of their clients who wanted additional assistance for survival. FPEGF plans on continuing its work with its local clients to help them in whichever way they can. They will also monitor new recovery programs that may arrive unannounced in the future.
In case you have any queries related to FPEGF loan referrals, consult with your Loans Account Manager at FPEGF and get all your questions answered.
To know more about Indigenous businesses and small and medium-sized businesses in Canada, do not forget to subscribe to our monthly CanadianSME Small Business Magazine.
In Canada, the I-ACE program is the only Indigenous codesigned and community-delivered entrepreneurship program. Their programs offer prospective Indigenous entrepreneurs the needed knowledge, skills, and mentorship that’ s required to successfully start and manage a company. The program also serves the community with the confidence that they need to march ahead in fostering economic development for the country without compromising on their traditional Indigenous values and customers.
How ACE Started?
Peter B. Gustavson School of Business of the University of Victoria founded the Indigenous Advancement of Cultural Entrepreneurship (I-ACE) in 2013. The I-ACE program marks itself as the nation ’ s only Indigenous co-designed entrepreneurship program, delivered in First Nations communities and centred on their priorities. Since its inception, the School has worked with around 67 Indigenous communities in British Columbia and has produced 604 graduates and 200 start-ups.
Ex Haida Nation council president, Miles Richardson, has mentioned that the success of I-ACE demonstrates that the business schools should be more flexible in their approach and delivery. I-ACE initially received $1 million as funding from the Bank of Montreal. Richardson also mentioned that the First Nations communities seek a productive economic relationship with Canada.
The Canadian Council for Aboriginal Business (CCAB) and CIBC has announced that Cory Stephens received the 2021 Award for Excellence in Aboriginal Relations. This award was presented to him because he challenged the status quo and advanced Indigenous business relations. Mr. Stephens is a fantastic example of a person who thrives on taking Canada ' s Aboriginal and Indigenous business to the next level of success.
Cory Stephens was born and raised in Prince Rupert and had a Tsimshian mother. He had a Nisga ’ a stepfather. He grew up in different communities and cultures, which increased his interest in advancing Indigenous business relations and entrepreneurship. He graduated in commerce from the Gustavson School of Business at the University of Victoria. He dedicated his knowledge and expertise to bridging the gap between Indigenous entrepreneurs and the national business landscapes by respecting the culture and tradition. In addition, he tried to build a connection and understanding with the non-Indigenous communities.
Stephens worked with several companies and government trade organizations. He founded Foot Print Consulting in Prince Rupert, B.C. His company aimed at supporting the growth of Indigenous communities while preserving Indigenous traditions and customers. He developed the training and capacity program for Health Canada that he thought would become the best practices model for Pacific Coast First Nations organizations. The Indigenous ACE or I-ACE program offers courses that are well-suited for students looking for an opportunity to learn more about lean start-up methodologies. The students can learn about the usage of this methodology and understand the target audiences better. They will also gain an opportunity to learn several research techniques, gain multiple experiences, and validate a sustainable business model. Moreover, the I-ACE program ’ s educators will work with the students to develop a marketing strategy for reaching out to the customers.
I-ACE – Courses
The 8S of I-ACE
Upon the successful completion of the course, the students from I-ACE will receive a certificate that will represent their achievements. Each of the certificates will correspond to an eagle, with the final two steps symbolizing the flight of an eagle as students will be ready to launch their businesses.
1. Seeing – The eagle
' s spirit certificate indicates that students have looked inside to discover their entrepreneurial individuality. With their eagle spirit, they are now ready to look outwards.
2. Spotting – A student with an eagle vision certificate has proven proficient enough to look out towards the horizon for finding the entrepreneurial chances that are right for them.
3. Shaping – A student who has found their flock has learned about their target audiences and discovered how to provide them with value.
4. Stimulating – Once a student completes the first loop of the 8S' s, they will prove that they are fully equipped and are well-prepared to move from personal development to entrepreneurial development.
5. Strengthening – A student who has found their call has perfectly learned how to differentiate themselves from their competitors.
6. Seizing – A student who has earned their claws has learned how to seize their market share that is right for their business.
7. Soaring – Once a student earns their wings, they are ready to take flight with all of the components of their business plan.
8. Sharing - A student who has built their nest has proven their ability to share their newfound success. Although they have been doing this in every stage of their journey, this certificate is a final reminder of their ability to give back.
Conclusion
Indigenous businesses play a huge role in shaping the economy of the nation. Although Indigenous people are finding it hard to gear up after this pandemic scare, it’ s time to provide them with the needed support. And several companies like CCAB are doing their part to provide the Indigenous communities with the needed strength and help them shape a prosperous Indigenous community.
