Adàwe: export experiences of Indigenous entrepreneurs

Global Affairs Canada (GAC) and the Canadian Council for Indigenous Business recently partnered to release a new report dedicated to advancing GAC’s understanding of Indigenous entrepreneurship. Entitled Adàwe, which means “to trade” or “to exchange” in Algonquin, the report features insights gathered from over 2,600 businesses owned by First Nations, Métis and Inuit people across diverse industries and regions.

Indigenous Peoples and trade

Indigenous Peoples have a long, rich history of trade across North America. This groundbreaking report sheds light on the distinct experiences and challenges of Indigenous-owned exporters, along with insights into the unique characteristics of these businesses and markets of interest, including:

• insights into the export behaviours and experiences of Indigenous entrepreneurs
• valuable data on industry trends and geographic considerations
• other information that can support Indigenous-owned businesses grow internationally

The main sectors of activity for indigenous SMEs

The results of a 2021 national survey indicate that Indigenous-owned small and medium-sized enterprises (SMEs) frequently concentrate on industries connected to nature, food, art, entertainment and culture, showcasing their deeply rooted heritage. Those who work in these sectors underscore their strong ties to tradition as well as the economic potential that can come out of their unique businesses. These ventures are characterized by innovation to provide unique products that are highly sought after by buyers from all over the world across various sectors.

However, the survey found an interesting difference between the employee-exporter relationship of Indigenous-owned and non-Indigenous-owned SMEs. Indigenous-owned SMEs usually have more employees on average than their non-Indigenous counterparts, yet fewer Indigenous-owned SMEs export their goods or services internationally (7.2%) compared to non-Indigenous-owned SMEs (12.1%). This difference highlights a potential growth opportunity and the need to further support Indigenous-owned SMEs in expanding their international reach.

Destination markets and expansion plans

Another interesting fact about Indigenous-owned SMEs is the significant presence of women entrepreneurs. Remarkably, 39.3% of all Indigenous-owned SMEs that export their goods or services are owned by women, whereas only 14.5% of non-Indigenous-owned exporters are headed by women. Indigenous-owned SMEs have also shown a particular affinity for expanding into destinations in Oceania, including Australia and New Zealand, where their products and services are gaining traction. This reflects the increasing appeal of Canadian Indigenous goods and services on a global stage.

Finally, while there’s a strong desire among Indigenous-owned SMEs that do not yet export to build this capacity, their geographical location in Canada can present a challenge in determining their exporting success. To overcome this, a substantial 80.3% of Indigenous-owned exporters have embraced the digital realm, selling their products and services online. This online presence gives them an advance compared to non-exporting Indigenous-owned SMEs, of which only 27.5% have ventured into the digital space. These numbers reveal the high potential for Indigenous-owned SMEs to thrive on the global stage if they go digital.

The future is bright

GAC would like to thank the Canadian Council for Indigenous Business for their collaboration on the Adàwe report. This will contribute to the Government of Canada’s commitment to increasing collaboration with Indigenous-owned SMEs, which will better serve their communities and ensure that everyone is benefiting from trade.