As one of Canada’s fastest growing demographics, the Aboriginal population and the economy it represents is increasingly important to businesses and governments alike.

As of the 2016 Census there were 1,673,785 Aboriginal people in Canada, accounting for 4.9 per cent of the total population. This was up from 3.8 per cent in 2006 and 2.8 per cent in 1996.

Unfortunately analyzing and quantifying this segment of Canadian society is no easy task given the data collection methods of statisticians and the organizations employing them. There is no one-stop shop for current, up-to-date numbers despite an almost universal desire to plug the holes in our understanding. Statistics Canada is perhaps the best source of information, though its data is generally spread across numerous different reports, categories and reference years.

In an effort to give our readers the best information available, ABQ has spent that past few months crawling through charts, graphs and various reports from multiple sources to bring together a comprehensive picture of today’s Aboriginal economy.

Labour Force by Ethnicity

Statistics Canada reports that the Indigenous workforce has grown over the past five years to 514,800 working individuals in 2016 versus just 449,900 in 2012. That represents an almost 14.5 per cent increase.

Looking at Aboriginal workers versus their non-Aboriginal counterparts there are some similarities. In terms of the percentage of the population employed by industry, in both cases sales and service occupations are the largest category though a larger proportion of Indigenous employees rely on work in this sector at 20.9 per cent versus 19.7 per cent for all other Canadians.

In second for Indigenous employees are occupations related to trades, transport and equipment operators at 20.1 per cent, while business, finance and administration occupations are the second largest employer of non-Aboriginal workers at 17 per cent.

One of the biggest differences between the two groups is the area of natural resources, agriculture and related production occupations. This segment of the economy accounts for four per cent of Aboriginal jobs. That’s more than twice the percentage across the rest of the labour market coming in at just 1.7 per cent.

The trend swings the other way when you look at management positions where some 7.1 per cent of Aboriginal workers are employed compared to 9.5 per cent of non-Aboriginal workers.

Incomes by Ethnicity

Looking at incomes across the country can be especially difficult when you break things down by ethnicity. Statistics Canada warns that users of their data should be aware that the estimates associated with this variable are more affected than most by the incomplete enumeration of certain reserves and remote settlements in the census information.

With that being said, Aboriginal workers definitely trail their non-Aboriginal counterparts in terms of income – though by exactly how much depends on which group an individual self-identifies with.

There were almost 420,000 First Nations people who took home wages, salaries or commissions in 2016 and among them their average earnings amounted to $33,324. For Inuit the average came to $36,374, while Métis enjoyed the highest average earnings among Aboriginal workers at $42,067. Non-Indigenous earners, however, average $47,537 a year.

This gap is often attributed to educational attainment and while Aboriginal learners are trailing the rest of Canada, improvements are happening every year. Over the past decade the percentage of Aboriginal people with no formal education has dropped from 34.1 per cent to 25.6 per cent.

The biggest jump is in the area of college graduates. While only 18.7 per cent of Aboriginal people had a college diploma in 2006, that number has increased to 23 per cent in 2016.

“Almost 7 in 10 Aboriginal people overall aged 25 to 64 had completed a high school diploma or equivalency certificate in 2016, up from under 6 in 10 in 2006,” reports Statistics Canada. “Those who completed high school included both people with a high school diploma only and those who went on to obtain postsecondary credentials.”

Furthermore, it reports that First Nations people living on reserve face greater barriers in accessing educational opportunities. For example, many have to leave their communities to attend educational institutions, including high school. The 2016 Census data shows those who lived off reserve were more likely to have completed postsecondary education than those living on reserve. For example, 11.4 per cent of First Nations people living off reserve had completed a bachelor’s degree or higher in 2016, compared with 5.4 per cent of those living on reserve.

Aboriginal Workforce by Gender

Delving inside the 2016 Census numbers on the Aboriginal labour force, there are clear differences in where men and women are finding work, though in many cases those gaps are starting to close as more Indigenous females are joining the ranks of the employed.

The total number of female Aboriginal workers increased by 17.3 per cent to 256,900 in 2016 compared to just five years earlier. More Aboriginal men are working too, though their numbers aren’t growing as fast as among women. In 2016, 257,900 Indigenous males were employed – an increase of 11.7 per cent over 2012 numbers.

Men continue to dominate the goods-producing sectors with some 97,500 total workers employed compared to just 22,100 women. Likewise women hold a healthy lead in the service sectors coming in at 234,800 workers versus 160,300 men.

In terms of sheer numbers, the largest employer of Aboriginal men remains the construction sector at 49,000 workers, while tops among Aboriginal females is health care and social assistance at 61,700.

Understanding Entrepreneurs

Statistics Canada reports that as of 2015, 10.8 per cent of Aboriginal people were self-employed compared to 14.7 per cent of non-Aboriginal Canadians. Unfortunately the national statisticians haven’t released any other data on this key sector of the Indigenous economy in more than a decade. To learn more about the state of Aboriginal entrepreneurs we turn to the Canadian Council for Aboriginal Business (CCAB) and its report Promise and Prosperity: The 2016 Aboriginal Business Survey. Though based largely on data obtained through Statistics Canada’s 2011 National Household Survey, the organization also supplements that information with the results of a detailed telephone survey conducted with 1,101 First Nations, Métis and Inuit business owners across Canada.

It reported that in 2016, there were 42,100 Aboriginal entrepreneurs in the country. Among these, fully 34 per cent were operating in the broad category of “professional, scientific and technical services, education, health and social services,” for a total of 14,155. Construction was second with 7,885 or 19 per cent of all self-employed Indigenous individuals.

“The characteristics of Indigenous entrepreneurship are difficult to analyze and understand using traditional definitions and metrics,” cautions the CCAB report. “Many are small, community-based, unincorporated, and operated by entrepreneurs with goals and strategies that often privilege cultural values, community investment, and concern for the environment ahead of profit.”

Corporate Structures & Size

According to the CCAB report, 73 per cent of Aboriginal businesses are unincorporated, operating as either a sole proprietorship (61 per cent) or a partnership (12 per cent), while just 27 per cent are incorporated under a federal, territorial or provincial charter. Additionally, some 64 per cent of Aboriginal business owners get by without the benefit of any employees.

“Sole proprietorships are the business model favoured by Aboriginal entrepreneurs, likely due to their relative ease of set-up,” states CCAB. “This model is most popular among businesses owned by women as well as those operating in the secondary or service sectors, and in the province of Quebec.”

Conversely incorporated Aboriginal businesses are generally most common in Alberta, and they are typically bigger in scale and enjoy higher revenues.

“Because incorporated companies are not eligible for tax exemptions under Section 87 of The Indian Act, on-reserve businesses are much less likely to be incorporated (14 per cent versus 32 per cent located off-reserve),” the report adds. “As a result, incorporated businesses remain more common among Métis (34 per cent) than First Nations (19 per cent) business owners.”

It goes on to add that over half (56 per cent) of First Nations businesses are located on reserve – though the number of off-reserve businesses has grown steadily in recent years, jumping to 43 per cent in the 2016 survey from just 28 per cent in 2010.

Fully two-thirds of Aboriginal businesses are home-based operations, a ratio that has held steady since 2010.

Who’s Being Served?

Understanding a business’ clients is key to understanding the business itself and looking at the clients of Aboriginal businesses on the whole suggests growing levels of reach and stability across the sector.

Through the survey, CCAB reports that Aboriginal businesses are most likely to supply goods or services to some other private sector businesses (72 per cent) or individual consumers (66 per cent).

Almost half (46 per cent) serve Aboriginal governments, while more than one-third each supply provincial/territorial departments, agencies or Crown corporations (39 per cent); federal departments, agencies or Crown corporations (36 per cent); and municipal governments (35 per cent).

“Most importantly, since 2010, the percentage of businesses that now supply each of these client types has increased, demonstrating that efforts to build a robust customer base have yielded positive results,” says the report.

On-reserve businesses have more difficulty gaining access to almost all customer types with the only exception being Aboriginal governments.

“Across the country, firms in the territories (i.e., Yukon, the NWT and Nunavut) continue to be the most likely to do work for governments at the federal, provincial/territorial and municipal levels,” adds CCAB. “Businesses in the territories and Saskatchewan are also the most likely to work with Aboriginal governments.”

Exclusive Funding

Joining the ranks of the self-employed generally takes money – it’s frequently the biggest hurdle would-be entrepreneurs face.

From coast-to-coast-to-coast there is a great deal of financial assistance available specifically for First Nations, Inuit and/or Métis entrepreneurs looking to start or grow their business.

While each jurisdiction certainly has additional funding programs open to Aboriginal business owners, the ones listed here are exclusively for Indigenous individuals, businesses and organizations. For links to specific program information and application forms, you can visit the Canada Business Network website canadabusiness.ca.

National

BDC Indigenous Entrepreneur Loan  As an Indigenous entrepreneur, you could get up to $150,000 to start a business or up to $250,000 to grow your existing business. Operations can be on or off reserve.  

Aboriginal Business and Entrepreneurship Development (All provinces, but not the territories)  If you are Aboriginal or have a majority-owned Aboriginal business, you can apply for up to $99,999 to help you start or grow your venture.

Alberta

Community Futures Treaty Seven – Business Development  Are you an Aboriginal entrepreneur wishing to start or grow your business? You may be eligible for a business loan of up to $25,000 to start or grow your business.

Settlement Investment Corporation  As a Métis business owner, you could get support with direct business loans of up to $250,000 and services such as business plan development and training.

Indian Business Corporation services  Are you an established or budding First Nations entrepreneur seeking financing and business support services? If so, you may qualify for a repayable business loan of up to $500,000.

Alberta Indian Investment Corporation  If you are an Indigenous entrepreneur seeking financing and business support, learn about loans, equity investments and services available to you.

Apeetogosan (Métis) Development Inc.  Are you an established or budding Métis entrepreneur seeking financing and business support services? If so, learn about direct business financing, equity investments, and business services.

British Columbia

First Citizens Fund – Business Loan Program  If you are an Aboriginal resident of B.C. you can get support to start or grow your business. You could get a loan of up to $75,000, plus a 1.5 per cent borrower’s fee. When your loan is approved, the Fund will contribute 40 per cent of the principal in pro-rata instalments over the term of the loan.

Coast Opportunity Funds – Economic Development Fund  If you are a Participating First Nation (or member of one) you could be eligible for funding that supports sustainable businesses and community-based employment opportunities in B.C.’s Central Coast, North Coast, and Haida Gwaii. Priority will be given to projects that have positive environmental or social impacts, direct or indirect.

Manitoba

Louis Riel Capital Corporation  Are you a Manitoba Métis or Non-Status Indian entrepreneur? If so, you could access financing of up to $99,999 to start, acquire or expand your small business.

New Brunswick

JEDI Aboriginal Development Fund  If you are Aboriginal and live in New Brunswick, you can apply for up to $2,500 to start or grow a business.

Ulnooweg’s Aborbiginal Business Loans  If you are a status or non-status Aboriginal living in Atlantic Canada, you could get funding to start, buy, grow or refinance a business. The loans available are: Youth loans, must be between the ages of 18-35; General loans, loans available up to $250,000; and, Cottage Craft Industry, loans available up to $1,000.

Newfoundland and Labrador

Ulnooweg’s Aboriginal Business Loans  If you are a status or non-status Aboriginal living in Atlantic Canada, you could get funding to start, buy, grow or refinance a business. The loans available are: Youth loans, must be between the ages of 18-35; General loans, loans available up to $250,000; and, Cottage Craft Industry, loans available up to $1,000.

Northwest Territories

Entrepreneurship and Business Development Fund  If you are Aboriginal and live in the territories, you could get financing of up to $3 million to start or grow a business.

Nova Scotia

Ulnooweg’s Aboriginal Business Loans  If you are a status or non-status Aboriginal living in Atlantic Canada, you could get funding to start, buy, grow or refinance a business. The loans available are: Youth loans, must be between the ages of 18-35; General loans, loans available up to $250,000; and, Cottage Craft Industry, loans available up to $1,000.

Nunavut

Entrepreneurship and Business Development Fund  If you are Aboriginal and live in the territories, you could get financing of up to $3 million to start or grow a business.

Makigiaqvik Loans  If you have an Inuit-owned business and are living in the Qikiqtani region, you may be eligible for a loan of up to $50,000.

Small Tool Grants  Inuk artists or craftspeople in the Qikiqtani region may be eligible for funding of up to $2,500 to purchase tools and supplies.

Economic Opportunity Fund  Your Qikiqtaaluk tourism-based business, operating adjacent to the National Parks, may be eligible for a grant of up to $10,000.

Sivummut Grants to Small Businesses  If you live in the Baffin (Qikiqtaaluk) region of Nunavut, you could get up to $25,000 to start or grow a business.

Atuqtuarvik Corporation – Financing  If you are Inuit and live in Nunavut, you can apply for a loan to start or expand your business.

Fisheries and fur programs  If you are an Inuk fur harvester in Nunavut you are eligible for advance payments for cleaned and dried sealskins and furs. You may also be eligible for a grant for fox, wolf and wolverine pelts that you sell to private fur buyers.

Ontario

Aboriginal Economic Development Fund – Business and Community Fund  You may be eligible to apply for a loan for your Aboriginal business in designated regions of Ontario. Your organization could receive up to $100,000 per project, per year.

Indigenous Economic Development Fund – Regional Partnership Grant  As an approved Indigenous business or a non-Indigenous business partnering with one, you may be eligible to apply for grants of up to $250,000.

General business loans  As a member of the Six Nations or New Credit Aboriginal communities, you could qualify for a business loan of up to $300,000.

Prince Edward Island

Ulnooweg’s Aboriginal Business Loans  If you are a status or non-status Aboriginal living in Atlantic Canada, you could get funding to start, buy, grow or refinance a business. The loans available are: Youth loans, must be between the ages of 18-35; General loans, loans available up to $250,000; and, Cottage Craft Industry, loans available up to $1,000.

Quebec

Aboriginal Initiatives Fund III  Your for-profit or non-profit Indigenous organization could be eligible for a grant for its economic development project.

Saskatchewan

Clarence Campeau Development Fund  If you are Métis, you could get a financial package to help you start, buy or expand a business. Under this program, CCDF can provide interest free financial assistance of up to the lessor of $300,000 per project or 50 per cent of project costs excluding pre-operating cost and working capital.

Commercial and Agriculture Loans for First Nations Entrepreneurs  Your business could access loans for capital expenditures, including farm equipment, livestock and land acquisition if it is at least 51 per cent Aboriginal owned.

Yukon

Entrepreneurship and Business Development Fund If you are Aboriginal and live in the territories, you could get financing of up to $3 million to start or grow a business. ABQ