Toronto, Oct. 01, 2019 (GLOBE NEWSWIRE) -- Canadian Council for Aboriginal Business (CCAB) is hopeful to see that its Supply Change initiative, to secure an increase in Federal procurement from Aboriginal businesses to 5%, is recognized in the Liberal Party election platform.
Federal procurement spending through the Procurement Strategy for Aboriginal Business (PSAB) has accounted for an average of less than 1% (0.32%) of total annual federal procurement spending since 1996. Now that a realistic and more than achievable 5% Aboriginal procurement spending target has been adopted in the Liberal Party platform, CCAB encourages other political parties to do the same or even better.
Backed by CCAB research and their recent report, Industry and Inclusion: An Analysis of Indigenous Potential in Federal Supply Chains, the increase will grow the Federal government’s supplier diversity outcome targets and put over a billion dollars into the Indigenous economy. CCAB acknowledges through their research and work on government procurement, Aboriginal businesses could supply 24% of the Federal supply chain.
“Our research shows that not only can we meet the 5% target of government contracts, but in fact, we can hit a quarter of Federal government spend,” said JP Gladu, President & CEO, Canadian Council for Aboriginal Business. “The Indigenous economy contributes $31 billion to Canada’s GDP, about $12 billion of that comes from Indigenous entrepreneurs. With Aboriginal businesses growing at 9 times the rate of the average non-Aboriginal business, it is estimated that the Indigenous economy will reach $100 billion by 2024.”
The Liberal platform also emphasizes continued efforts through legal assistance and support, particularly SMEs (Small and Medium Enterprises) to increase Canadian export by 50% by 2025. CCAB’s research report, Indigenous-Owned Exporting SME’s in Canada, finds that exporting Indigenous SMEs have twice the propensity at 24% to export than non-Indigenous SMEs.
“A quarter of Indigenous SMEs operating in Canada export, and have twice the tendency to export than non-Indigenous SMEs,” said Gladu. “With 12% of exporting Indigenous SMEs selling to international markets it is evident how sophisticated and engaged the Indigenous business economy is nationally and in the global economy.”
The Indigenous population is the youngest, fastest growing demographic in Canada so it stands that it would be smart business and beneficial to the Canadian economy to increase federal procurement targets for Aboriginal businesses. Full Indigenous participation in government supply chains, in all supply chains, is a move forward toward economic reconciliation.
Key messages:
- Policy increasing Federal procurement from Aboriginal businesses to 5% will put over a billion dollars into the Indigenous economy
- A 5% goal can be achieved without increasing procurement costs, decreasing quality, or lengthening contract timelines
- Aboriginal businesses could in fact supply 24% of the Federal government annual spend
- Indigenous economy contributes $31 billion to Canada’s GDP annually
- Over 50,000 Aboriginal businesses in Canada
- Indigenous Peoples are the youngest, fastest growing demographic in Canada
- Aboriginal businesses growing at 9 times the rate of the average non-Aboriginal business
- Approximately 24.4% of Indigenous SMEs export, compared to 11.8% of non-Indigenous exporting SMEs
- Over 1 in 5 Indigenous SMEs export to the U.S., and over 1 in 7 sell to non-U.S. overseas markets
- Benefitting all Canadians, it is estimated that the Indigenous economy will reach $100 billion by 2024
About CCAB
CCAB is committed to the full participation of Indigenous peoples in Canada’s economy. A national, non-partisan association, CCAB offers knowledge, resources and programs to both Aboriginal and non-Aboriginal owned companies that foster economic opportunities for Indigenous peoples and businesses across Canada. For more information visit www.ccab.com.