Doing Business with First Nations is Our Territory ©g y

Aboriginal Business & OpportunitiesOpportunities

Lee Ahenakew4Sight Consulting

Estimating the Size of the Aboriginal Market, TD Economics 2011

• $24 B in 2011 growing to $32 B in 2016

• Estimated 25,000 business entities

• An estimated 262 community economic development corporations

• Total Aboriginal business earnings estimated at $9 B in 2011

Promise and Prosperity:  The Aboriginal B i S CCAB 2011Business Survey, CCAB 2011

• Aboriginal entrepreneurs also perceive their businesses as successful • Aboriginal entrepreneurs also perceive their businesses as successful (49% extremely/very successful vs. 9% not successful)

• The most successful Aboriginal businesses:

o Had a business plan in place in 2010 (33% vs. 19% of low-success firms)

o Were twice as likely to have introduced new products/services or new processes in the past three years

• Key challenge: Access to capital, more –so for on-reserve business

Aboriginal owned business are the best i l i iat creating employment opportunities 

for their people“Four in ten (38%) EDCs report that they are the major employer in their

community. Aboriginal peoples comprise, on average, 72 percent of EDCs’ employees” from “Communities and Commerce”

Source: Community and Commerce, CCAB, 2011

• Entrepreneurs are source of employment for Aboriginal peopleo Most (86%) of those with employees employ at least one

Aboriginal persono On average, Aboriginal people comprise 62 percent of the

employees of these firms

Source: Promise and Prosperity, CCAB, 2011

What is important to EDC’s?

• The relationship between EDCs and their financial institutions is considered central to their success institutions is considered central to their success (84% say it is very important).

• value partnerships with Aboriginal-owned business (64%)

• Relationships with non-Aboriginal businesses (48%)• Many said the best management decision in 2010 • Many said the best management decision in 2010

was to pursue more partnerships

How do EDC’s support Aboriginal b i ?business?

• The bulk of this support comes in the form of preferred supplier relationships and agreements preferred supplier relationships and agreements (38%),

• Many also act as mentors to local entrepreneurs, providing guidance and advice when needed (30%)

• Provide financial assistance to allow entrepreneurs to start new ventures or expand their services (26%)to start new ventures or expand their services (26%)

Community Economic Development

Impact Benefit Agreements

Victor Diamond Mine Manitoba H dro

Agreements

Victor Diamond Mine $200 M

Manitoba Hydro $60 M

Land DevelopmentsKamloops Sun River Estates

00 l h

Land Developments

500 up-scale home development

CCAB Progressive Aboriginal Relations “Business Development” KEY FINDINGSBusiness Development  KEY FINDINGS

• Preferential procurement policies

• Break down opportunities for smaller pieces of work

• Establish an Aboriginal supplier database

• Communicate opportunities

• Procurement information sessions• Procurement information sessions

• Mentorship

Trends

• The mining sector has a strong business case and desire to buy from Aboriginal businessesy g

• Joint ventures are standard now for certain businesses:

C t ti t ti– Construction contracting– Food and facilities outsourcing

• More Tier 1 suppliers to the resource industry • More Tier 1 suppliers to the resource industry looking towards JV’s to enter new markets and maintain market share

Opportunities

• Contracting: General Contractor, electrical, mechanical, scaffolding, HVAC, etc.F d d f iliti t i• Food and facilities outsourcing

• Transportation• Exploration services ie Tahl Tahn Resources• Exploration services ie. Tahl Tahn Resources• Other services: security, custodial• Supplies: safety, industrialSupplies: safety, industrial

How To Get in The Game

• Set-up a well governed community owned development corporationp p

• Attend conferences and trade shows: SMA, Prospector and Developers Association of Canada, Canadian Institute of Mining and Metalurgy, Canadian Institute of Mining and Metalurgy, Canadian Petroleum Producers Association, Canadian Aboriginal Mining Association

• Seek partners and multiple partners if possible for • Seek partners and multiple partners if possible for any opportunity; choose the best partner

• Health and safety is #1 in the resource industry• Get in the game early in the exploration phase and

support exploration

Challenges

What I hear from the resource industry:G f it d d l t • Governance of community owned development corporations needs to be improved to flow contracts

What I hear from First Nation proponents:• Mapping traditional territories and activities will

i i i f b fiimprove negotiations for benefits• Better understanding of the mining development

life-cycle ie. explorationlife cycle ie. exploration

Th kThank you