Northern business exposure

Aboriginal Business Canada’s new Yellowknife office promises greater opportunities for aboriginal business

By John Cooper

Got a yen for kayaking in Canada’s north — perhaps a hankering to paddle down rarely traveled streams and challenge some exciting whitewater on the Northwest Territories’ Slave River? If so, then you could let entrepreneur Keith Morrison, owner/ operator of Slave Kayak Lodge, be your guide.

The president of this small-but-growing tourism operation says he couldn’t have established his company without the help of Industry Canada’s Aboriginal Business Canada (ABC) program.

The $49 million federal government program recently expanded its operations to include the Northwest Territories (NWT). Its network of Canada-wide offices, staffed by CMAs, chartered accountants and BComm graduates, has been helping Aboriginal business people like Morrison get a start on their business ventures for 15 years.

Building on success

ABC’s new office in Yellowknife builds on a network of grassroots operations across the country. The office will provide local access to ABC’s funding programs for qualified Aboriginal entrepreneurs in areas that include tourism, manufacturing, innovation and youth entrepreneurship. Support is also provided to small and medium enterprises that offer services to specific regional development projects.

The program builds on ABC’s record of success in providing assistance to NWT Aboriginal entrepreneurs. Since 1999, the program has invested $2.8 million in 65 local Aboriginal business development projects, resulting in a total investment of $17.8 million in the Northwest Territories’ aboriginal private sector.

The new office is also a good move for ABC, as the NWT, a 1.2 million square kilometre area with a population of 41,500 (of which 60% is Aboriginal), is home to some of the fastest growth in Canada, particularly in resource-based industries. For instance, the decade-old NWT diamond mining industry is already one of the world’s largest mining industries, and within a few years will produce 15% of the world’s diamonds, resulting in direct and spin-off jobs and the addition of millions of dollars to the local economy.

David Grindlay, executive director of Northwest Territories Tourism, the marketing organization for tourism in NWT, says the “local economy is busting at the seams.” And while the tourism industry was hard hit after September 11, 2001, it is definitely on the rebound.

An area of particular re-growth is in “aurora tourism,” where tourists come to look at the Aurora Borealis, or Northern Lights. A recent $700,000 tourism campaign in Japan resulted in an 11% increase in tourism from that country. Japanese tourists are big fans of the north — the NWT averages 14,000 Japanese tourists a year who come ready to inject capital into the local economy.

Radek Bandzierz, ABC’s director of corporate affairs, says the new Yellowknife office really builds on a success rooted in a capable and comprehensive delivery model.

“We think we have a pretty unique delivery model in government” that includes 11 regional and satellite offices across Canada, says Bandzierz. “We also have 15 external delivery offices, embedded in Aboriginal communities, and in remote areas like Manitoulin Island and Goose Bay. Our folks live and work in these areas.”

The program ensures that its representatives are in the community, marketing the program and assisting local entrepreneurs with their business plans. Alternative service delivery is implemented in places like Iqaluit, the capital of Nunavut, where a lump sum of money is used to assist business development. The focus is on reviewing and approving projects quickly to assist business start-ups.

“Another model we have is a Cabinet-appointed National Aboriginal Economic Development Board,” says Bandzierz. There are currently 16 board members, 15 of whom are Aboriginal, which is essential, given that the Aboriginal board members are familiar with the community’s needs.

Strong communication

ABC has been in place since 1989 and in that time has invested $665 million in 16,000 business projects, resulting in a total investment of more than $1.8 billion in the Aboriginal private sector. Today, more than 27,000 Aboriginal-owned businesses operate Canada-wide. Across Canada, there are close to one million Aboriginal people, more than half are First Nations, with the balance in the Inuit, Métis and mixed-background communities.

To make ABC’s programs more efficient, the organization has conducted extensive research in the past two years, expanding its criteria for business and giving more applicants access to funding, as well as expanding the definition of its “youth entrepreneur” from 30 to 36 years of age, says Bandzierz.

Talking to service delivery professionals and stakeholders, ABC found a need to relax some of its restrictions, particularly on tourism-oriented businesses and innovative ventures. It’s now more a case of ‘anything goes’ as long as the business is tourism-related and a moneymaker. This can include everything from restaurant operations to eco-tourism and initiatives like Morrison’s company.

Morrison, an engineer, says he had worked toward the goal of operating his own business for several years. “I bring people up, house them and guide them. And I’ll be expanding into rafting and sea kayaking soon,” he says. “I advertise internationally and have my own Web site.”  Morrison currently operates on a two-acre site with teepees, sauna, tent lodge and hot tub and he runs more than a dozen kayaks from his site; with a staff of two, he’ll likely have four or five staff added in the next year.

He adds that he was pleased with the way ABC communicates with provincial and territorial funding agencies.

That’s not lost on Bandzierz, who says the strong grassroots communication has made the program an increasing success.

“[As an entrepreneur] we’re definitely not going to limit you to the types of activities you can get into,” he says. “In the last round of modifications we saw a range of regional opportunities (in NWT). We saw there may be regional projects that could benefit from association with the diamond mining, gas and oil industries.”

Demonstrating results

With a $39 million budget, plus $10 million for operations and a staff of 100, ABC’s measure of success is in the survival rate of its entrepreneurs, says Bandzierz. Currently, that rate is five per cent above the national average for small business survival (five years after inception) of 65%.

And a new mentoring program matching youth entrepreneurs with retired business people is just getting under way in Manitoba, Saskatchewan and Ontario — and looks to be a success as well.

“All of this really points to us recognizing that we’re good at what we do,” Bandzierz says. “It’s a relatively small organization with excellent staff. I’ve been here six years and in my experience most if not all of our officers see their job as a calling, not an occupation. We’re in the business of helping the ‘little guy’ and our success rate demonstrates that we’re making a difference.”

From the perspective of the North’s tourism industry, Grindlay says he is optimistic about the potential of ABC’s new Yellowknife office. With the new office, the process of marketing programs and initiatives, meeting with clients and getting businesses up and running will “become a whole lot easier.” 

It also fits well with a gap analysis study his office is currently conducting with local agencies and ABC. “Aboriginal Business Canada is an integral part of this process,” says Grindlay. “They can take the information and use it in further developing programs here.”

John Cooper (tymelco@sympatico.ca) is a Whitby, Ont.-based freelance writer.

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