Doing Business with Canadian Aboriginal Communities Breakfast Seminar Canadian German Chamber of Commerce November 16, 2011

Overview Who are Canada’s Aboriginal PeoplesWho are Canada’s Aboriginal Peoples Aboriginal Economic FootprintAboriginal Economic Footprint Challenges and OpportunitiesChallenges and Opportunities Overcoming Challenges through positive relationshipsOvercoming Challenges through positive relationships

Aboriginal peoples Aboriginal peoples of Canada, as defined by the Constitution Act, 1982, comprise the Indian, Inuit and Métis peoples of Canada.Aboriginal peoples of Canada, as defined by the Constitution Act, 1982, comprise the Indian, Inuit and Métis peoples of Canada. Each distinct group has unique heritages, languages, cultures.Each distinct group has unique heritages, languages, cultures. Over one million people identify as Aboriginal with 2/3 North American Indian; 30% Metis; 5% InuitOver one million people identify as Aboriginal with 2/3 North American Indian; 30% Metis; 5% Inuit 45% growth btwn (higher birth rate, longer life expectancy)45% growth btwn (higher birth rate, longer life expectancy) Fastest growing population; median age 22-25; 1/3 under 15 yrs of ageFastest growing population; median age 22-25; 1/3 under 15 yrs of age

Aboriginal Population growth beyond National average

Canada’s Aboriginal PeopleS

Aboriginal Economic Footprint If Aboriginal communities are to prosper, they must develop viable business opportunities which can lead to increased Aboriginal employmentIf Aboriginal communities are to prosper, they must develop viable business opportunities which can lead to increased Aboriginal employment Combined income of Aboriginal households, business and govt sectors is expected to reach $32 billion by 2016 ( TD Economics and CCAB )Combined income of Aboriginal households, business and govt sectors is expected to reach $32 billion by 2016 ( TD Economics and CCAB ) Aboriginal economic development corporations (EDCs) contribute about 37% to aggregate annual incomeAboriginal economic development corporations (EDCs) contribute about 37% to aggregate annual income 72% of EDCs have been in operation for 10 yrs + with annual sales revenues of $5 million or more72% of EDCs have been in operation for 10 yrs + with annual sales revenues of $5 million or more

International Business aspirations “First Nations recognize the growing importance of Asian markets, and the opportunity to seek out a competitive advantage to expand economic opportunities for First Nations and all of Canada.” -- “First Nations have innovative plans for community- based sustainable economic development,” …“and we are reaching out to partners nationally and internationally for opportunities that work for our peoples and communities.” “First Nations have innovative plans for community- based sustainable economic development,” …“and we are reaching out to partners nationally and internationally for opportunities that work for our peoples and communities.” National Chief, AFN, Sean Atleo

ABORIGINAL ENTREPRENEURS In 2006, 34,045 Aboriginals self-employed (up 25%) Metis are largest self-employed group (almost 50%) First Nations are second at 45% Inuit have less than 2% declared self-employed 1/3 Aboriginal businesses provide employment to one or more full-time Aboriginal employees1/3 Aboriginal businesses provide employment to one or more full-time Aboriginal employees

Diversity of Aboriginal Businesses

Aboriginal Land as an Economic Asset FN reserve lands cover almost three million hectaresFN reserve lands cover almost three million hectares Inuit settled land claims in the Northwest Territories, Nunavut and Northern Quebec which provided monies for investmentInuit settled land claims in the Northwest Territories, Nunavut and Northern Quebec which provided monies for investment Ie.Nunavut Land Claims Agreement (1999) gave title to Inuit-owned lands measuring about 350,000 km squareIe.Nunavut Land Claims Agreement (1999) gave title to Inuit-owned lands measuring about 350,000 km square Economic Development: casinos, residential developments, hotel developments, golf courses, industrial parks; airlines, arctic cruises, tour operationsEconomic Development: casinos, residential developments, hotel developments, golf courses, industrial parks; airlines, arctic cruises, tour operations Job creation and training opportunitiesJob creation and training opportunities

Opportunities As Aboriginal groups gain greater control of capital and resources, opportunities arise for partnership agreements, JV’s with your businessAs Aboriginal groups gain greater control of capital and resources, opportunities arise for partnership agreements, JV’s with your business Access to a young, local pool of Aboriginal employees who can be trained to fill growing labour shortagesAccess to a young, local pool of Aboriginal employees who can be trained to fill growing labour shortages Long-term business relationships that can lead to additional business opportunitiesLong-term business relationships that can lead to additional business opportunities Sharing information and transferring knowledgeSharing information and transferring knowledge Gain trust within the Aboriginal community you work with and neighbouring communitiesGain trust within the Aboriginal community you work with and neighbouring communities

Challenges Community readiness: whether there is sufficient financial and human capacity to engage in a projectCommunity readiness: whether there is sufficient financial and human capacity to engage in a project Educational attainment: in 2006, 41% of the Aboriginal population had post-secondary certification; only 8% had a university degree; skills training may be requiredEducational attainment: in 2006, 41% of the Aboriginal population had post-secondary certification; only 8% had a university degree; skills training may be required Financing FN business on-reserve a challenge for lendersFinancing FN business on-reserve a challenge for lenders Defects in First Nation property rights ( Indian Act )Defects in First Nation property rights ( Indian Act ) no ownership of the lands (collectively or individually)no ownership of the lands (collectively or individually) Fed Govt has legislative jurisdiction & mgmt over reserve landsFed Govt has legislative jurisdiction & mgmt over reserve lands World economic outlook is still changingWorld economic outlook is still changing

Get to Know the Aboriginal Community Review the community’s website, read national and Aboriginal newspaper articles, talk to provincial government contacts and businesses to understand local issues and help further your objectivesReview the community’s website, read national and Aboriginal newspaper articles, talk to provincial government contacts and businesses to understand local issues and help further your objectives Who is the Chief and Council: meet face-to-faceWho is the Chief and Council: meet face-to-face When is the next election – usually every two yearsWhen is the next election – usually every two years Develop a consultation plan or ask the community for their consultation protocols and land use policiesDevelop a consultation plan or ask the community for their consultation protocols and land use policies

Create Mutually beneficial business relationships Balance corporate, social and environmental responsibility with prosperity for both PartiesBalance corporate, social and environmental responsibility with prosperity for both Parties Use agreements to outline understandings that help to build trusting and respectful relationshipsUse agreements to outline understandings that help to build trusting and respectful relationships Develop policies and protocols (together) that respect good business practice and First Nation valuesDevelop policies and protocols (together) that respect good business practice and First Nation values Establish a regular meeting schedule and create a forum for open and honest communicationEstablish a regular meeting schedule and create a forum for open and honest communication

Be Open and honest Engage early, engage often (consultation) – directly involve First Nations at the earliest opportunityEngage early, engage often (consultation) – directly involve First Nations at the earliest opportunity Understand the uniqueness of the First Nation community, and utilize the wisdom of Elders and others with specialized knowledgeUnderstand the uniqueness of the First Nation community, and utilize the wisdom of Elders and others with specialized knowledge Manage expectations and inform the community about opportunities as well as risks of a projectManage expectations and inform the community about opportunities as well as risks of a project Educate communities about the sector your company works inEducate communities about the sector your company works in Encourage entrepreneurship and partnershipsEncourage entrepreneurship and partnerships

Resources and links Assembly of First Nations: of First Nations: Metis National Council: National Council: Metis Nation of Ontario: www. metisnation.org/Metis Nation of Ontario: www. metisnation.org/www. metisnation.org/www. metisnation.org/ Inuit Tapiriit Kanatami: Tapiriit Kanatami: Canadian Council for Aboriginal Business: Council for Aboriginal Business: Metis Nation Economic Dvmt Portal: Nation Economic Dvmt Portal: Human Resources and Skills Development: dex.shtmlHuman Resources and Skills Development: dex.shtmlhttp:// dex.shtmlhttp:// dex.shtml Aboriginal Human Resource Council: Human Resource Council: National Aboriginal Capital Corporations Assn: splash.htmlNational Aboriginal Capital Corporations Assn: splash.html

Questions? Patricia Stirbys Independent Consultant Toronto ON M5G 0A6 e: c: