INDIGENOUS
ENTERPRISE
DEVELOPMENT
FORUM
Working in
partnership initiative
In collaboration with
Western Cape Regional
Partnership Agreement
2014
WEIPA
Nov 7-8
CONTENTS
1
2
3
4
Summary
Background
Presentations
Workshops
P1
Who, what, where,
when, why and how?
P 2-3
WIP and the Western
Cape
P 4 - 11
Who presented and
what they talked about
P 12 - 15
How the groups
worked and what they
came up with
5
6
7
8
Day Two
Feedback
Sponsorship
Attachments
P 16
Tailored discussions
P 17
How people felt the
forum went
P 18
The sponsors who made
it all possible
P 19 - 20
The schedule
1
SUMMARY
The Working In Partnership (WIP) Weipa Indigenous
Enterprise Development Forum (the forum) was held on 7-8
November, 20140. The forum attracted over 90 participants
from local Aboriginal communities, organisations, mining
companies, small and medium businesses, education and
training service providers and the three levels of government.
The intent of the forum was to create further opportunities to
contribute to sustained employment for local Aboriginal
people in mining, tourism and related industries while
fostering new, viable enterprises.
An array of guest speakers presented on topics including
business planning, financing, joint ventures and mastering
digital media. The speakers shared success stories and
challenges, while offering support to participants looking to
start and grow their own business.
As part of the forum, attendees participated in one of three
practical breakout sessions based on realistic scenarios. The
sessions were facilitated by special guests and speakers and
were designed to apply and cement the knowledge needed to
run a business.
On day two of the forum, participants had the opportunity to
talk with the arranged facilitators to ask questions, seek help
and make connections.
Following the forum there were a number of
recommendations identified to keep momentum for
Indigenous business development and broader Indigenous
participation in the Weipa area.
1
2
BACKGROUND
The WIP Initiative
Weipa and the Cape
The WIP initiative was instigated as the Mining
Industry and Indigenous Communities Program by
the Australian Government on 3 August 2001.
The Western Cape, with a significant level of
mining activity, has relatively few Indigenous
businesses. More broadly over the last year there
has been an economic contraction in many
mining areas, triggered by falls in commodity
prices and wider mining company decisions to
cease some downstream minerals processing.
The WIP initiative is administered by the
Department of Industry and Science and seeks to
promote long term partnerships between
Aboriginal communities and the exploration and
mining industry. In addition, the initiative supports
and encourages ongoing cultural change between
the exploration and mining industry and Aboriginal
communities across Australia.
The initiative has included a series of regionally
based workshops in areas of mining interest
throughout Australia. All workshops have served to
bring together interested parties in significant
regional centres to discuss local issues to achieve
local employment outcomes for Aboriginal
communities and businesses.
2
Between 2004 and 2010 there was concerted
government support for Small Medium Enterprise
(SME) start-up in Indigenous communities in the
Western Cape, notably in fishing, timber, block
making, transport, and tourism.
Most of these activities were also supported by
Traditional Owner (TO) groups/boards, Trusts
and/or Councils. Many of these businesses failed.
This may have been because of the lack of
preparedness and capacity of the SME
proponents and contributed to by start-up
businesses being under-capitalised and without
sufficiently skilled employees.
Why WIP in Weipa?
Business establishment where there is lack of
fundamental business know-how and planning,
collateral or capital, appropriate infrastructure,
market research, industry skills, mentoring, and a
base in employment or entrepreneurship will, in
any enterprise, fail.
The RPA approached the Department of Industry
in March 2014 requesting support for a WIP
Forum for the region. The forum provided advice
on first steps with the message that critical
thinking is needed for business development and
without it, business will fail.
This is the message that has been needed among
Indigenous communities and individuals in the
region. Given the long time needed to establish
and consolidate a business, baby steps are
needed in the first instance to allow the business
to establish a solid foundation.
The forum’s model uses Indigenous mentors to
teach and inspire local Indigenous people. This
encourages mutual understanding and
relatability.
The resulting input, enthusiasm and extremely
positive feedback from the 95 participants are
Members of the Weipa Cape Regional Partnership evidence that there is a desire by local Indigenous
Agreement (RPA), formed through the Australian people to run businesses in this region.
Government and the Minerals Council of
Australia’s (MCA) Memorandum of Understanding
(MOU), took the lead in making the Indigenous
Enterprise Development Forum in Weipa happen
with the support of the WIP initiative.
3
3
PRESENTATIONS
The day began with Brendan Bishop, the forum’s facilitator,
kicking off proceedings by introducing the forum and providing an
outline of the schedule. The morning session contained
orientation, a welcome to country by Algnith Traditional Owner,
Patsy Hudson, a forum overview and presentations by invited
guests.
OF 95
ATTENDEES
The presentations outlined the importance of a proper business
plan and steps and tips on what was needed to start a business.
Following morning tea, speakers talked on funding and how best
to use it, as well as methods to promote and grow business.
67%
The afternoon had three separate, concurrent breakout sessions
that participants could attend and work through likely industry
scenarios to the Western Cape i.e. capital intensive, land based,
and people based industries. Panellists and facilitators assisted in
the afternoon workshops by leading stimulating discussion and
assisting with solutions to the scenarios. The groups then
presented their work to the rest of the forum.
Were Indigenous
87% Finished day one
45% Returned day two
To close, the forum was treated to the Yaru Water story which
exemplified what it is to thrive as an Indigenous business. Participants
were then invited to join in a social networking event at the Weipa
motel.
4
OPEN AND WELCOME
Brendan Bishop,
Managing Director,
First Enterprises and
The Alarm Guys
Gareth Manderson,
General Manager
Rio Tinto Alcan
Weipa and Chair,
RPA
Facilitator and Master of Ceremonies
Brendan introduced the day’s proceedings and was able to contribute his own experience as both an
Indigenous business owner, and Indigenous Business Australia (IBA) consultant. Brendan facilitated
questions and introduced speakers and important guests throughout the day.
Open and Welcome
Gareth spoke to the diversity that Weipa has beyond just the mine, noting key statistics like 80% of
houses are owned by local residents. There are many opportunities both within the mine and outside
of it for local business to take advantage of.
Gareth implied the need for realistic business expectations, which became a common theme on the
day. If businesses want to grow and succeed, they “need to stabilise before growth. Cash flow needs
to be sustainable and the business making a sufficient margin.”
“Stabilise before growth.
Cash flow needs to be
sustainable and the
business making a
sufficient margin”
Having the business in the right position will allow for greater opportunities, like bidding for council
and government work and with Rio Tinto Alcan.
5
KEYNOTE SPEECH
No expectations
Anthony started his business from the ground up in 2008 (check). His keynote speech reminded
participants of the need to set realistic goals and to work hard. Anthony encouraged participants that
they need to listen and “work with the customer, not against them,” and to “talk to your clients, don’t
be scared of them.”
Anthony’s business has grown to a success with significant turnover and more than 70 staff; a large
portion who are Aboriginal. Speaking frankly on growing the business, Anthony advised that
participants “be realistic and be prepared to give up your life for the next five years. The only way
you’re gonna grow your business is to put 120% in.”
Anthony also noted that, while it is possible to grow your business alone, there are times when a
partnership or joint venture can help you across the line with a big job and help break into a market.
He pointed out the importance of knowing your strengths and weaknesses and being prepared to
engage the right people with the right skill sets in key roles. Anthony also warned about the tough
times: you are running a business and sometimes that means tough decisions.
Throughout his lessons, Anthony emphasised a strong need to be upfront, transparent and always
keep the customer informed on what is happening. “Know and engage with your customer and use
their constructive criticism to improve your business.”
6
Anthony Martin, Managing
Director, ALM Contracting, Port
Hedland, WA
“Know and engage
with your customer and
use their constructive
criticism to improve your
business”
PANEL PRESENTATIONS
Pete Dunn,
Indigenous
Services, Global
Business Leader
and Business
Development
Manager, GHD
“Don’t start your
business out of fear”
Paul Hynes,
Business
Lending and
Support
Manager,
Indigenous
Business
Australia (IBA)
“The first mistake you
can make is not
planning”
No Demand No supply - Growing Indigenous commercial business and capacity development
Pete Dunn has a long history of working with Indigenous communities and is dedicated to Indigenous
economic development. Pete reinforced the power, skill set and unique capabilities that Aboriginal
people have but urged that there needs to be a purpose and necessary demand to support a
business. “Don’t start business out of fear because you think there are no other options. Get good
advice and use your assets [materials, people].”
There are more opportunities for global connections thanks to enhanced technology and
connectivity. By connecting with larger organisations and other businesses, Aboriginal enterprises
have greater power and unity to win and sustain contracts. Such an example is Alaskan based NANA
development corporation that aims to help Indigenous Alaskan populations utilise land and maximise
economic returns.
Planning for Success – What makes a good business plan
Paul Hynes has a breadth of experience assisting Indigenous business. He specialises in business
plans including creation, implementation, and monitoring of a good plan. Paul advised that “the first
mistake you can make is not planning.”
Planning is about the details - intenders need to determine what the costs are, if there is a market
and what is their competitive advantage. The business plan “is there as a guidepost.” Paul
encouraged participants to attend an IBA workshop to develop a business plan. Drawing on some of
the IBA’s statistics, Paul was able to highlight that Indigenous business has much potential: 49% of
non-Indigenous businesses fail within the first three years of operation, whereas 69% of Indigenous
business remain.
7
PANEL PRESENTATIONS
Scott Woodward,
Head of Eastern
Operations, Many
Rivers
Microfinance
Funds, Loans & Money Management - Who to go to, collateral, risks and financial
management
Scott Woodward specialises in microfinance to Indigenous business at Many Rivers. Many
Rivers provides small businesses small loans through Westpac bank and initial and ongoing
business support.
Scott reinforced the need to have a clear and reasonable rationale when starting a
business. One should “test the market and make sure you have a plan.” Scott advised that
getting a loan straight up is not the best move for small business, who instead should “take
your business far as you can before going for a loan.” This involves careful financial
planning and asking questions like:
Together with
“What’s the next best use of money?”
Bruce McQualter,
Indigenous
Business
Manager, Eastern
Australia, Westpac
Bruce is a senior manager with extensive banking experience specialising in Indigenous
engagement and strategic planning. He works in collaboration with Scott to provide advice
and micro-financing to Indigenous business. Echoing the proceeding speakers, Bruce urged
the need for sensible fiscal decisions and incremental planning and steps. “Borrow small
and grow it [the business] sustainably at the right pace.”
Having good guidance through the process of starting a business is crucial. “Surround
yourself with trusted confidants” and ask for help where possible.
8
PANEL PRESENTATIONS
Michelle Dale,
Manager, Digital
Enterprise Program
FNQ&TS
Getting it out there – Know your product/company and market and promote it well
Michelle has expertise in digital engagement for business. With the world becoming more connected
through digital means, the possibilities to link to customers are continuing to expand.
Michelle provided many tips on how to use digital media, including: the benefits of Facebook, twitter and
other social media sites; how to respond to customers’ feedback; emailing and newsletters; customer
review sites; how to use google effectively, and; case studies of good and bad business uses of digital
media.
Michelle suggested using ‘Mailchimp’ for sending email newsletters (free up to 2000 emails) and creating
a business page on google plus at the very least.
“Digital engagement provides your message quickly and to many people”
Isha Segboer,
Coordinator,
Tourism Cape York
Getting it Out There – Regional business clusters
Tourism has been identified as a key industry for the sustainable development of Cape York Peninsula.
However, for many reasons the industry on the Cape has remained fragmented and lacking a unified
voice.
Isha was able to provide tourism business intenders and participants a platform which they could
advertise and display their business, specifically for the cape, i.e. Tourism Cape York. Enterprise is helped
by “using support of groups such as Tourism Cape York to ‘put yourself out there’, make sure your
business is known and promoted.”
9
PANEL PRESENTATIONS
Partnerships and Joint ventures - Incubation and a regional approach
Derek has a long history in Indigenous economic development and employing and retaining Indigenous
people. He has directed and grown multiple businesses and has experience across a variety of topics
including joint ventures.
Firstly Derek noted that “if you run a business, you gotta be hard and tough and pull the line. It’s not all
about handouts; Aboriginal businesses have to compete equally.” He urged business owners and
intenders to get support and mentoring and to not be afraid of joint ventures/partnerships.
“Make it clear that your joint venture has goals. Know what you do well and find the right partner.”
Derek reinforced the need to work a plan for the life of the joint venture and to have a “clearly worked
out exit strategy.”
Having someone on your side who knows about the process will help you avoid pitfalls or being taken
advantage of.
“Mines will not give you a production critical contract if you cannot
deliver on other smaller job packages first”
10
Derek Flucker, Chair, Aboriginal
Enterprises in Mining Exploration
and Energy (AEMEE) and Managing
Director, RBY Projects
CLOSING ADDRESS
Shane Matthews,
Indigenous Training
& Development
Manager, Yaru Water
Together with
Scott Morrison,
Operations Manager,
Sodexo
“Take opportunities and
build relationships
whenever they come up”
The Yaru Water Story – How critical thinking and partnerships can foster great business and
employment training outcomes
Shane specialises Financial Planning and Finance Mortgage broking. He is also dedicated to
developing and training Indigenous employees in efforts help ‘close the gap’. Shane was able to
provide knowledge to participants seeking financial planning guidance.
Scott has a comprehensive knowledge of site operations from across the eastern seaboard of
Australia. He presented a particular focus on developing the supply chain and maintaining good
business relationships. Together, Scott and Shane demonstrated positive Indigenous business
stories on how partnerships and critical thinking made Yaru Pty Ltd into a successful business.
In early 2012 Sodexo became a strong supporter and advocate of Yaru Pty Ltd and its product
known as Yaru Water. The water is bottled at the source, flowing from deep beneath an
ancient volcano (Mt Warning) in the Tweed-Byron region in Bundjalung country in northern
NSW. In the early months, Sodexo looked beyond its own commercial gain and provided
assistance to the Yaru team to identify and secure better logistics solutions. Sodexo facilitated
introductions to national logistics providers. This resulted in a national distribution and logistics
solution that allowed Yaru to confidently grow its business.
Shane recommends that business owners “trust and believe in themselves, get good
partnerships or committed mentoring and take opportunities and build relationships whenever
they come up.”
11
4
WORKSHOPS
The breakout sessions were a chance to practically apply knowledge from speakers and panellists into realistic business scenarios.
Participants had the option to attend one of three sessions (listed below) and each group had an hour to come up with a solution. The
following case studies show how the groups considered the problems at hand and determined actions following that.
1 - Capital Intensive Sector
Led and presented by Scott McIntyre from Keogh Bay consulting
Name - ‘The Gammon Motor Works Company’
Scenario - Set up a company/jv that delivers truck and light vehicle
maintenance and repairs, and light haulage services for mining, transport &
main roads and building firms
2 – Land Based Sector
Led and presented by Scott Woodward, Many Rivers
Name - ‘The Gammon Healthy Country and Cattle Corporation’
Scenario – Set up a corporation/association to deliver a vehicle wash-down
pad, weed and pest eradication, and fire management service to mining,
pastoral and government entities OR a cooperative with cattle station
owners to set up an abattoir and meat packaging and export company
3 – People Based Sectors
Led by Liz Logan and presented by Ronnie Guivarra
Name - ‘The Gammon Nature and Nurture Co-operative’
Scenario – Set up an SME/cooperative to establish and run a cultural centre
with a restaurant and art gallery as well as an allied small childcare facility
for artists, employees and patrons.
12
The Gammon Motor Works Company
Business Idea – 6pm to 6am Mechanics
Open after hours mechanics servicing light vehicle repairs and maintenance and small
equipment transport
Whose business is this?
An existing Rio Tinto Alcan employee working a four day on, four day off roster with a goal of starting
their own business in light vehicle maintenance/repairs and small equipment transport.
1
2
3
4
Research
 Gaps: no after hours or mobile maintenance and repairs services in Weipa
 Customers: customer base to include main roads, councils, Rio Tinto Alcan and general public.
 Market: There is competition from existing mechanics that may rival after hour’s service.
Opportunities
 Support from mentors and professional networks
 Partnerships with day-time operating mechanics: complement their time availability.
 engage existing in-house support services to build capability as well as government support services
Action Plan
 Develop a clear business plan that is revised, reviewed and followed closely
 Set up business structure
 Use support networks to assist with business structure and operations
 Start small while continuing to work at Rio Tinto and operate the mechanics job on side for approximately
three months. This will test the market while keeping job security.
13
The Gammon Healthy Country and Cattle Corporation
OBJECTIVE - start a cattle operation in Weipa for the period beyond 2040 when mining is
significantly slowing down
Resources
 People, land, existing cattle properties in region (although some are neglected), connections to
owners and cattle.
Opportunities
 Waterways and other great areas, lots of fish, lots of investors (Asia) looking for food security.
 Land based produce will become a premium.
Challenges
 Clear land ownership and title; ownership of wild cattle.
 How will that ownership work - community need versus business needs.
Actions







Identify clients, customers, investors and what products they each need
Be clear on land boundaries and ownership, land management options
Choose the right governance structure, management options and sharing of dividends
Develop a process of consultation and a constitution that recognises culture but can meet the requirements of
doing business.
Ensure leaders and other community members have their say and can be heard. Open consultation to be
encased in the constitution to address individual members in regard to community land
Just because community members are connected to TOs, does not guarantee work unless skills are there.
Identify community expectations and build a picture of future outcomes for the community
14
The Chivaree Cultural Cuisine Café
Open a café in Mapoon, North of Weipa
* No turtle meat to be sold at this café
to cater for locals and tourists.
HOW? ........................................................
 Start small - governance structure will have at most 5-10
community people involved (all with drive and some skills)
 Get incorporated under Office of the Registrar of
Indigenous Corporations (ORIC)
WHY.........................................................
 Make money and grow local economy
 Employment
 Learning and development opportunities
RESOURCES.............................................
 Local chef and Barista
 Willing people to employ
 Shipping containers
CHALLENGES............................................
 Wet season – few tourists and bad roads
 Lack of accounting, administration and other skills
 Getting enough cash flow to pay wages
OPPORTUNITIES.....................................
 Use shipping containers as cheap, mobile locations
 Target tourists and ‘grey nomads’
 Capitalise on volunteer tourism
 Sell art in the café
 Possibly make it an internet cafe

Join with local attractions i.e. diverse and shared history,
cultural tours, crocodile watching, turtle conservation,
fishing, crabbing and boat rides
AVAILABLE SUPPORT...............................
 Many Rivers – small loan for the shipping container
 IBA – support with business plan and pricing/mentoring
 Bendigo Bank
 ILC – possibly get transportation of the shipping container,
 Digital Enterprise Program – website and setting up social
media
 TCY – market research and promotion
15
5
DAY TWO
Approximately 42 participants came to day two of the forum
on Saturday 8 November. The purpose of day two was to
connect people, summarise proceedings, allow for questions
and look at next steps.
Discussions took place around the following topics:









16
Identify entries and appropriate support for business
intenders
Need a local resource/hub with space, phone
connections and possible business mentor
Literacy and numeracy was an important base (RPA has
an adult Literacy and Numeracy initiative running)
Importance of employment as a base
Need workshops
Real appropriate training (no tick and flick approach)
Approach other businesses – use learnings gained
already
Get more skills/information from workshops – utilise
IBA
Look at other stakeholders
6
FEEDBACK
From 95 participants, 65 feedback forms were returned. Disregarding speakers and facilitators, this means that only about 15 people
failed to provide feedback. The form asked 8 questions rated between Strongly Agree and Strongly Disagree:
Forum Day One Participant Feedback (n = 65)
100%
90%
80%
70%
60%
Strongly agree
50%
agree
40%
neutral
disagree
30%
20%
10%
0%
Objectives Structure and
were clear and format of
relevant to my Workshop
interest in
allowed the
developing a objectives to
business
be met
The forum and I met people I have a better Time allowed
Facilitator
Results of
workshops
who I would understanding for meeting encouraged workshop can
were well contact or deal of what is
and talking to discussion and be used by me
organised and with again
required as a others was sharing ideas to build on
time spent on
result of the
about right
developing a
each session
forum
business
was about
right.
17
7
SPONSORSHIP
18