STRENGTHENING
INDIGENOUS
COMMUNITIES 08
SUPPORTING COMMUNITIES IN
ENGAGING WITH SERVICE PROVIDERS
IN INDIGENOUS BUSINESS
DEVELOPMENT
John Armstrong – Harbinger Consultants
We are here!!
The Blak Business Smart Business Hub (BBSB)
was an initiative undertaken by the Brisbane City
Council in partnership with the Queensland State
Government and Federal Government in
response to issues raised by the Brisbane
Indigenous Communities through an extensive
community consultation process which was
conducted throughout 2003–2004.
Commencing in August 2005 the service ceased
in August 2008 because of shifts in priorities and
policy of the funding parties.
BBSB Mission:
To provide ongoing personalised, professional
guidance for the sustainable development of
Aboriginal and Torres Strait Islander businesses.
BBSB Vision:
For there to be national recognition of Aboriginal and
Torres Strait Islander entrepreneurs who are
establishing and managing successful enterprises
and the major impact these businesses have on
employment and the local and global economies.
BBSB Service:
By bringing together business information, support,
resources and brokerage in a culturally appropriate
way we assisted Aboriginal and Torres Strait Islander
business development. We worked with individual
and community based entrepreneurs in an ongoing
mentoring continuum from initial business concept
through to established enterprise growth.
The Blak Business Smart Business Hub operated
across the following local government areas:
Beaudesert Shire
Boonah Shire
Brisbane City
Caboolture Shire
Caloundra City
Esk Shire
Gatton Shire
Gold Coast City
Ipswich City
Kilcoy Shire
Laidley Shire
Logan City
Maroochy Shire
Noosa Shire
Pine Rivers Shire
Redcliffe City
Redland Shire
Toowoomba City
By proactively seeking, networking with and
supporting Indigenous clients at any stage from
business start-up to expansion the BBSB team of
4 staff achieved the following over a 3 year
period:
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600+ enquiries
157 individual clients actively serviced
8 Organisation clients actively
serviced
48 new businesses operating
29 new businesses in pre-start-up
phase
66 operating businesses receiving
ongoing support
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171 jobs generated
18 workshops held in-house
66 workshops held by other provider
432 clients participated in in-house
workshops
196 clients participated in other
provider workshops
257 clients provided with one-on-one
skills development
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83 completed business
plans/feasibility studies
31 business plans resulting in
business start-up
81 clients assisted with
marketing/sales advice/strategies
72 funding applications = 52 approved
THE KEY TOOL DEVELOPED BY BBSB TO
WORK WITH ASPIRING
ENTREPRENEURS INVOLVES 5 STEPS:
1. BUSINESS READINESS ASSESSMENT
2. SKILLS AUDIT
3. PRACTICAL MATTERS
4. PLANNING
5. IMPLEMENTATION
STEP 1
BUSINESS READINESS ASSESSMENT
• This is the first contact meeting and follows a
referral from a third party or an approach
from the potential client.
• Establish a Cultural link (Where are you from? Who’s
your Family?) – discuss the need for a Confirmation
of Indigenous Descent which entails a letter from an
Indigenous Community Organisation (necessary for
securing any government support in the future – this
sometimes can take a long time so best to get the
process started at the beginning of the engagement
with client)
EXIT POINT = if client has ethical or political objections
to securing Confirmation of Indigenous Descent then
they will not have access to government support. NB:
can proceed if client has access to other funds for
business development.
 Client’s financial and tax situation – if bankrupt or in
serious debt then we need to know – if client has
outstanding tax returns (more than 2 years) then
these need to be resolved before proceeding – this is
a good point to encourage client to seek out an
accountant and solicitor
EXIT POINT = if undischarged bankrupt then they will
not have access to financial support. Tax - client fixes
up tax situation and returns when all OK.
 Business Assessment - BBSB talks with the
client about their personal goals, why they
want to start a business, how committed they
are and what resources they have
EXIT POINT = if client decides they are not
ready for whatever reason – facilitate access
to job network or link with other clients at this
stage.
 Client Agreement Form - BBSB staff
discusses with the client the services
available to ensure that both client and BBSB
are clear about who is responsible for what
and that all client information stays
confidential.
• Develop a business idea - This is about
clarifying and identifying the client’s business
concepts or about assisting the client to
identify the most suitable business to match
their strengths.
EXIT POINT = if client’s idea is unviable facilitate access to job network or link with
other clients at this stage.
• Research Plan - BBSB provided the client
with resources to start planning their
business.
• Action Plan – work with the client to allocate
tasks and timelines and document these
EXIT POINT = some clients may only require
Research Plan and Action Plan to manage
their own business development and/or
expansion. Other clients may benefit from
linkage to ICV.
• The following matters should have been
discussed with the client by the completion of
Step 1
NB: DTRDI ‘7 Steps to Business Success’ have
templates and checklists to facilitate this.
• Consider Your Suitability: Start a business
where you already have industry or
management experience. Those starting a
completely new venture have a higher risk of
failure (50-80% of new businesses fail in their
first 3 years). If starting a new venture ensure
you are continually learning new skills and
researching the industry.
• Consider Your Idea: assess the merit of your
business idea and whether people will be
willing to buy BEFORE commencing start up.
• Consider Your Market: Develop a way of
consistently reaching your customers,
because you need customers to survive and
you will probably have to do a lot of marketing
until you establish a name for yourself.
• Consider Your Competition: Check out what
the competition is doing. You need to
establish a competitive advantage to survive.
• Consider The Environment: Keep in touch
with what is happening in your industry, the
general trends and the overall economic
situation so you can take into account factors
that might affect your success.
• Consider Your Finances: Keep accurate and
up to date financial records and manage your
cash flow. This means you can address
problems immediately rather than leaving it
too late.
• Consider Your Start Up: Make sure you have
enough money to cover your start up. Do not
budget optimistically as banks will not lend
money with high risk attached.
SKILLS AUDIT
 Training Plan identified - BBSB assists the
client to identify what skills they have when it
comes to owning and operating their own
business.
 Education options - BBSB assists the client to
identify the most appropriate way to further
develop their business skills.
EXIT POINT = if significant skill gaps are
identified the client may need to enrol in
further study or seek work in the industry or
give up the idea completely.
 Workshops - The client is encouraged to
attend sessions that include networking,
business readiness and business
sustainability. Online training modules may be
applicable as a self paced solution.
STEP 3
PRACTICAL MATTERS
• These matters can be dealt with now but
stress should be placed on the necessity of
engaging a good accountant and solicitor.
 ABN and Business Name Registration assist the client to register their business
name and secure an Australian Business
Number (ABN) as well as GST Registration if
appropriate (annual turnover above $75K).
 Credit Check - facilitate a credit history check
which is necessary if the client intends to seek
business capital through loans or grants for
establishing their business.
 Ensure client has Confirmation of Aboriginal
or Torres Strait Islander Descent Form - This
is also necessary if the client intends to seek
business capital through Indigenous specific
loans or grants for establishing their business.
Client cannot approach IBA without this.
 Ensure client has appropriate partnership
agreements in place if not a sole trader.
 Introduce client to relevant stakeholders and
networks (SEQICC, Blak Pages etc).
 Client should be able to utilise appropriate
business terminology and have access to
computer.
EXIT POINT = client may partner with
experienced business person
STEP 4
PLANNING
 Preparing applications for business support BBSB worked with the client to complete and
lodge business support applications for a
Feasibility Study, Business Plan and
Marketing Plan. (IBA, DEEWR, DTRDI).
 Marketing support was offered by BBSB.
 Access to mainstream financial institutions
can be brokered.
 Access to Venture Capital can be brokered.
 Linkage to other business support agencies
and corporates can be brokered.
STEP 5
IMPLEMENTATION
 Mentoring - BBSB linked the client to a
relevant Mentor who can assist with
sustaining the client’s business when it is
operational.
 Capital Assistance - BBSB supported the
client in applying for grants or loans for the
establishment or progression of their
business.
 Marketing collateral developed
 Access to microfinance can be arranged
Business starts up and
everyone celebrates!
Open for Business: Developing Indigenous
enterprises in Australia is the report of the
House of Representatives Standing
Committee on Aboriginal and Torres Strait
Islander Affairs’ inquiry into developing
Indigenous enterprises. Earlier in 2008 the
Committee undertook a short but intense
inquiry into Indigenous enterprises which
considered the support that is available for
Indigenous businesses and explored ways
that Indigenous people could be encouraged
to embark upon or expand a business.
The life expectancy gap of 17 years between
Indigenous and non Indigenous Australians
was a critical driver for this report. The
Committee was concerned that in this day
and age that there was still such a large gap
in life expectancy.
The Committee held the opinion that if the
rate of Indigenous participation in small
business was increased, there was likely to
be a flow on effect of employment and
increased economic participation which could
help to close the gap between Indigenous and
non Indigenous people.
In 2006, six per cent of employed Indigenous
people indicated they worked in their own
business, which compares with 17 per cent of
employed non Indigenous people.1 Overall the
small business sector employs nearly 50 per
cent of all the people working in the private
sector, so a focus on increasing Indigenous
participation in small business was seen by
the Committee as being a positive way
forward.
The 15 Recommendations will inform and
guide the sector into the future.
• Recommendation 1
The Committee recommends that the Australian
Government conduct a biennial national review of
Indigenous businesses in Australia, collating data on
industry sector, business size and structure, location
and economic contribution.
• Recommendation 2
The Committee recommends that the Australian
Government recognise the vital contribution of
Indigenous business development to the economic
and social sustainability of Indigenous communities
and, accordingly, develop the methodology to
adequately value this economic and social
contribution when assessing the investment returns
for providing assistance to Indigenous businesses.
• Recommendation 3
The Committee recommends that the Australian
Government develop templates for Indigenous Land
Use Agreements to specify that corporate and
industry partners fund Indigenous partner
corporations to access advice, including financial,
taxation and in particular expert legal advice of a
quality comparable to that available to the other
negotiating partner. This is to ensure that the terms of
agreement meet the social and commercial objectives
of the Indigenous communities involved.
• Recommendation 4
The Committee recommends that the Australian
Government develop a process for monitoring the
content and implementation of Indigenous Land Use
Agreements, and develop a complaints process for
Indigenous partners.
• Recommendation 5
The Committee recommends that the Australian
Government establish an Interdepartmental
Committee (IDC) to ensure a streamlined and
coordinated approach to the delivery of all forms of
business assistance to Indigenous enterprises. The
IDC should comprise all departments and agencies
delivering services to Indigenous businesses and
enterprises including but not limited to Indigenous
Business Australia, the Department of Education,
Employment and Workplace Relations, the
Department of Innovation, Industry, Science and
Research, the Department of Families, Housing,
Community Service and Indigenous Affairs.
• Recommendation 6
The Committee recommends that the Australian
Government provide additional funding for the
Commonwealth Science and Industrial Research
Organisation to expand its research and partnering
work in the areas of natural resource management
and carbon emissions reduction leading to potential
commercialisation opportunities for Indigenous
communities.
• Recommendation 7
The Committee recommends that the Australian
Government work cooperatively with state and
territory governments to expand an Indigenous
business networking model that appropriately takes
account of the uniqueness and diversity of Indigenous
business in each state and territory.
• Recommendation 8
The Committee recommends that the Australian
Government establish a ‘one stop shop’ for
Indigenous entrepreneurs and businesses. This
facility should provide assigned case manager
contacts, similar to Austrade, who navigate a
business through different stages of establishment
and growth. The ‘one stop shop’ facility should
include services to support Indigenous businesses
such as:
• advice on the range of government, industry and
community grant and funding programs available;
• mentoring and business ready skills recognising the
particular cultural challenges facing Indigenous
enterprises; and
• advice on establishing appropriate governance
structures.
• Recommendation 9
The Committee recommends that the Australian
Government establish a series of target levels of
government procurement from Indigenous
businesses, and require all Australian Government
agencies and authorities to nominate a target level.
The Committee also recommends that all Australian
Government agencies and authorities be required to
report in their annual report the procurement level
from Indigenous businesses. Future consideration
should be given to introducing an escalating series of
mandated procurement levels over the next decade.
• Recommendation 10
The Committee recommends that the Australian
Government provide a program of funding, including
micro-funding, with an emphasis on remote area
enterprises, to enable entrepreneurs to establish
cooperative enterprises, especially in the arts sector.
The Committee recommends that Indigenous
Business Australia in association with a corporate
partner in the financial sector deliver this program.
• Recommendation 11
The Committee recommends that the Australian
Government as part of the current review of
Australia’s taxation system include consideration of
how to encourage Indigenous start up business
through the taxation system.
• Recommendation 12
The Committee recommends that the Australian
Government fund biennial Indigenous business
awards, similar to those held in New South Wales
and previously in Western Australia.
• Recommendation 13
The Committee recommends that the Australian
Government pilot an Indigenous Supplier
Development Council in Australia for a period of Five
years. There should be a review after three years that
assesses longer term viability, participation levels and
contribution to growing Indigenous businesses. Seed
funding for the pilot should include adequate
resources to network and market the benefits of the
pilot Council to Indigenous suppliers and corporate
buyers.
• Recommendation 14
The Committee recommends that the Australian
Government demonstrate its commitment to the pilot
Indigenous SDC in the following ways:
• commit to a core of Australian Government agencies and
authorities, which have significant procurement budgets,
becoming foundation members of the Indigenous SDC and
directing a targeted proportion of their procurement budget to the
Indigenous SDC;
• pending a successful pilot of the SDC, establish target dates for
all Australian Government agencies and authorities to become
members of the Indigenous SDC; and
• work cooperatively through the Council of Australian
Governments to maximise the use of the Indigenous SDC
across all levels of government.
• Recommendation 15
The Committee recommends that the Australian
Government, in addition to establishing a pilot
Indigenous Supplier Development Council, through
the Department of Innovation, Industry, Science and
Research trial an Indigenous business ready
mentoring and accreditation program to increase the
range and capacity of Indigenous businesses able to
supply to the pilot Council.
JM John Armstrong
Harbinger Consulting
PO Box 334
ASPLEY
Queensland 4034
AUSTRALIA
0418 224 953
jmjarmstrong@hotmail.com