January 2012

See our  COMMUNITY BUSINESS INCUBATOR  COMMUNITY ECONOMIC DEVELOPMENT WORKSHOP Vancouver Feb 6-7, 2012 Calgary Feb 9-10, 2012 details
	Minding Our Own Businesses: how to create support in First Nations communities for Aboriginal business BY John Mc Bride and Ray Gerow click here for the full study Published by: The Centre for Sustainable Community Development at Simon Fraser university, Burnaby BC

Welcome. We are starting this newsletter with a reference to an excellent study called "Minding Our Own Business."   "The purpose of the project was to investigate what other First Nations have done to support their small business operators, and to create a process to look at what could be done in your community." The authors were hoping to create an update to this study, but we been unable able to find one. What we can say through our own experience working with First Nations for many years it that this study still remains as relevant today as it did then.  If you are involved in Economic Development it will be a great resource in understanding business development for your Nation. We have been actively promoting the first On Line Aboriginal Business Incubator and our greatest challenge has been to get the communities to comprehend how beneficial this will be.   We are pleased to say that after three months we have twelve communities on board such as the Nisichawayasihk Cree Nation based in Nelson House, Manitoba.   They have been using the Incubator to generate business and provide their citizens with easy access to information and resources. Here are parts of this study. Use your entrepreneurs to build your community’s economy “It’s the economic horse that pulls the social cart,” says Ovide Mercredi. It’s community economic development (CED) that is generating most of the money First Nations communities have to improve their standard of living. Development can generate jobs that make life easier for people, support them to stay in the community, and empower them to achieve greater self-reliance. It can create products and services the community doesn’t have, and if people pur-chase locally, it helps keep some of that money circulating in the community. Development can also make people proud of what they have created, where they live, and who they are. Economic development is one of the few things that make life better in First Nations communities. The Chief and councilors can’t do it all. The entrepreneur is better equipped to build a successful business. He or she can spot opportunities and act quickly whereas the band has to inform members, discuss with members, and evaluate the project in the context of the community priorities. Only then can they take action. Entrepreneurs will start up a business using less time and resources than those of a band or tribal council. Opportunities don’t wait for the community process. An entrepreneur is usually passionate about his/her business and will take risks that bands can’t afford. They will give their business a full-time commitment, and all their resources, which may include those of their family and friends. The mainstream economy depends almost entirely on the drive and efficiency of the private sector for innovation and job creation. Small businesses are the engines that drive and power the economy. First Nations communities need to make better use of entrepreneurs to build their economies. “In American Indian communities it is estimated that 93% of the new jobs are generated by private business.” cont'd above

cont'd What are the obstacles to business start-up? Aboriginal entrepreneurs have told us that the obstacles they encountered when trying to start up a business on reserve were often impossible to overcome. We interviewed both successful and unsuccessful entrepreneurs. We heard the same stories in each of the communities we visited. There was often a lack of business start-up information and support. They could not find information on business incorporation and organization, building a business plan, or financing their business. They said there was no one to guide them through the process, and if they were assisted with the start-up process, there was no continuing support or long-term “after- care.” Entrepreneurs also said they felt left out of “the loop” and disconnected from business networks and people who would have inside information. They identified a lack of encouragement from the band office and community members. They said how hard it was to know what the band administration would support and what start-up processes they were expected to follow. They also despaired at the unwillingness of community members to encourage or support Native businesses. If they did achieve business success it was not uncommon to be resented by other members. The Skeena Native Development Society has documented that starting a business on reserve is over three times as complex as off reserve. The reason for the slow business start-up on reserve in Canada is because it has to involve the band and Indian and Northern Affairs Canada. Small business is risky at the best of times, but trying to start up a business on reserve can be next to impossible. On the Navajo reservation in Arizona it takes two years to get the approvals to start a business, and in the nearby off-reservation town of Flagstaff, you can complete the paper work and be approved within ten working days. Obstacles 1.    There is difficulty finding business support information on specific topics. 2.    Once businesses start, funding agencies and service providers ignore their continuing needs. 3.    Aboriginal entrepreneurs are not in “the loop” - not connected to business circles - and therefore miss out on important information. There is a need to build capacity among service provider workers. 4.    Web-based service delivery has many obstacles and few shortcuts to improved information services for many Aboriginal entrepreneurs. 5.    There needs to be increased sensitivity to and support of under-served areas, the East Kootenays being one such region. 6.    There is a need for more sensitivity towards Aboriginal culture, and the unique challenges faced by Aboriginal entrepreneurs must be recognized and strengthened. 7.    Cooperation and coordination between service providers and government agencies and between providers and government agencies is fragmented and inadequate. Recommendations: 1.    Improve awareness and distribution of existing business information tools, and develop and modify additional tools. 2.    Improve services for businesses after they have been established (“aftercare”), preferably on a continuing basis throughout the life of the business. 3.    Develop vehicles and processes that will facilitate formal and informal business networks at local and regional levels. 4.    Invest in building capacity of service provider personnel to ensure quality service.

COMMUNITY BUSINESS INCUBATOR COMMUNITY ECONOMIC DEVELOPMENT WORKSHOP (Significantly Increase Business Start Ups & Expansions) Vancouver Feb 6-7, 2012 Calgary Feb 9-10, 2012 Cost per Community $2,000.00 up to 2 participants are included  (additional participants $500.00ea) Details or  print a pdf of this workshop	SEE 3 MINUTE YOUTUBE VIDEO   IT IS THE BUSINESS THAT CREATE THE JOBS
16-1581H Hillside Avenue, Victoria BC  V8T 2C1 tel: 1.888.445.3046  fax: 1.866.636.7022 info@aboriginalentrepreneur.com