New initiatives have made an impact on the sector but most Indigenous businesses are still micro or small businesses
If you didn’t know any better, you might think that there are hundreds of Indigenous people running around the country with millions of dollars in their bank accounts, flash cars, fancy houses, all sipping on expensive sparkling wine. A recent press release from the Indigenous affairs minister stated that $1.084bn in contracts had been awarded in the last financial year. To most people, you imagine with figures like that, you’d think the community was sitting pretty.
However, that’s not necessarily the case. Let’s unpack the first point. A contract’s worth – for example, an $80,000 contract – is not the same as profit. You don’t get to take the $80,000 home and start spending away. A contract might bring in $80,000 but it might cost you $70,000 to deliver the contract. If you’re lucky, you might get to keep $10,000, though a chunk of that will probably go to the tax office. So $1.084bn in contracts is not profit. So while the range of new initiatives have made an impact on the Indigenous business sector, most Indigenous businesses are still micro or small businesses, just ordinary folks building something for themselves and their families.
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