New data improve our understanding of Indigenous-owned businesses
We know that Indigenous-owned businesses make a valuable contribution to Canada’s economic vitality, but we still have much to learn about what makes these firms distinct. To better understand the Indigenous economic landscape, more than 2,600 businesses owned by First Nations, Métis and Inuit people participated in the first Survey of Indigenous Firms. The results highlighted several significant differences from businesses owned by non-Indigenous people. Indigenous-owned firms are more likely to:
- do business in construction and retail sectors
- be located in rural areas, where high transportation costs could make them more sensitive to price increases for goods such as fuel and food
- have obtained funding from a government program or grant, and less likely to have used a bank as the primary source of funding for their business
- have funded their business through their savings
The survey was part of the Bank’s effort to better understand Indigenous economies, and was conducted in partnership with Global Affairs Canada, the Canadian Council for Indigenous Business and Big River Analytics. The Survey of Indigenous Firms is a step toward better representation, but we need to keep working to obtain more complete data. Indigenous people must be involved in collecting and managing that data. Organizations such as the First Nations Information Governance Centre are leading these efforts. When collecting data, the Centre uses the First Nations Principles of ownership, control, access and possession. These principles ensure First Nations control who can use information about their communities and how they can use it. They also ensure the community has access to the information for its own use.
