![]() ![]() ![]() There has been an increase of Indigenous People leaving the reserves for urban centres to attend schools or find employment, which exacerbates the challenge for an on-reserve business to find and keep skilled employees. Many of the smaller communities do not have Economic Development departments or community run businesses there may be no one in the community to mentor the owner of a start-up business and it’s just as unlikely that there will be business networks to tap into for support or marketing.Ĭommunities that have little or no business development are less likely to have skilled workforce. The Barriers for Indigenous Women in Entrepreneurship.Even on those reserves where homes can be owned, there is a disparity between the equity in a house on a reserve compared to a house not on a reserve. On many reserves, except some that have developed self-government agreements, the house may be owned but the land is not – therefore it cannot be sold - which makes it impossible to build up equity in your home, as is possible for non-Indigenous people. Section 89 of the Indian Act prohibits use of reserve land as collateral - banks are reluctant to provide loans if assets cannot be seized in case of default. Amongst the many impacts of this, individuals who have limited access to mainstream financial institutions often have no or poor credit scores, which exacerbates the challenges of accessing financing from these institutions.” Notably, as of this year, the four major banks in Canada (i.e., the Royal Bank of Canada, the Bank of Montreal, the Canadian Imperial Bank of Commerce, and Scotiabank) collectively have less than 50 Aboriginal branches, banking outlets, or banking centres located on-reserve. the vast majority of Aboriginal communities do not have a bank within their boundaries. However, the challenges for Indigenous businesses, particularly those on reserves, to raise the capital to begin, support or expand their business is considerable and runs from there not being a local bank: In this article we take a look at both business and social challenges for Indigenous businesses.īusiness and social challenges Indigenous entrepreneurs may faceĪccess to equity or capital is a key component of business development for non-Indigenous and Indigenous businesses alike. For example, an entrepreneur setting up a business on-reserve may be impacted by the degree of remoteness and size of community whereas an Indigenous entrepreneur in an urban setting may be impacted by the absence of home community support. Indigenous entrepreneurs face some challenges that those in the mainstream business sector do not, and the challenges faced by Indigenous entrepreneurs differ again, depending on factors that are unique to Indigenous entrepreneurs. All entrepreneurs face some challenges but not all entrepreneurs face the same challenges. ![]()
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