Not a fad: billions spent with Indigenous businesses
Indigenous entrepreneurs are in huge demand and their contribution to the Australian economy should be celebrated, a leading business verifier says.
Indigenous businesses recorded $5.83 billion in procurement spend with government, corporate and non-profit organizations in the 2024/25 financial year, up more than $1 billion from the previous financial year, confirmed Supply Nation.
Supply Nation chief executive Kate Russell said the figures showed the Indigenous business sector was growing, competitive and of high quality.
Companies, governments and other organizations continue to prioritize diversity in their supply chains, he said.
“This is not a trend, this is not a fashion,” the Awabakal woman told AAP.
“Indigenous businesses are here to stay and that’s because they provide an extremely valuable product or service and are embedded in supply chains nationally in post-referendum Australia.”
The mining sector recorded the highest overall industrial sector procurement expenditure with $1.64 billion, followed by the construction sector with $1.26 billion.
Approximately $1.52 billion was spent on procurement contracts, with government agencies and local councils representing approximately 26 percent of total spending.
Ms. Russell said dozens of Indigenous businesses join Supply Nation’s registry each month.
While there are very real challenges for Indigenous business owners, including a lack of access to capital, he said the industry is still growing, which is a testament to the resilience of First Nations people.
“Our people were the first traders and the first entrepreneurs,” Ms. Russell said.
“There is thousands of years of wisdom in our communities that our entrepreneurs are just starting to use and commercialize.”
Less than one percent of the businesses on Supply Nation’s books are nonprofit or special-purpose organizations, but most contribute to their communities in some way.
Ms Russell said this creates social value as well as economic contributions, whether through philanthropy such as scholarships or sponsorship of local sports teams, or by providing education and employment opportunities for young people.
“While most people go into business because they want economic self-determination, they also see the impact it has on their families,” he said.
Ms Russell said she would like to see more Indigenous entrepreneurs move beyond purchasing agreements as their businesses mature.
But wherever they are in their journey, he said the role Indigenous businesses play in the Australian economy should be acknowledged and celebrated.
“They create over $42.6 billion in social and economic value every year,” he said.
“They should be given a seat at the table when the government is discussing things like cutting the deficit or the economy.”
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