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CCAB EcDev SupportsPAR: Progressive Aboriginal Relations
Procurement: Powered by The OMX
TFAB: Tools and Financing for Aboriginal Business
Research: Understanding the Aboriginal Economy
Created over 30 years ago by Murray Koffler
National member based organization
Non-partisan – Receives no core government funding
Over 500 Members
Key services– PAR, TFAB, Research, and Awards & Events
CCAB
MISSION
To foster sustainable business relations
between Aboriginal and non-Aboriginal
business.
Shared Values
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Aboriginal (seeking) Corporate (seeking)
Revenue Revenue
Employment Human Resources
Security Security
Relationships and Contracts
* Partnerships & JV’s
Business Support Services* Aboriginal Businesses
Environment and Culture EA and CSR Approval
Certainty Certainty
Estimating the size of the Aboriginal
Market in Canada
TD Economics
• Total combined income of
Aboriginal households,
businesses and
government sectors could
reach $32 billion.
• Resource sector
contributed significantly in
last decade.
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Research Findings
• Since 2010 Aboriginal businesses report:
• An increase in profitable companies:
• 2010 61% profitable
• 2015 76% profitable
• Decrease in losses:
• 2010 29% operating at loss
• 2015 18% operating at loss
• 70% optimistic that they will be in
business five years from now
• Business relationships are cited as key
to facilitating this process
Community Approaches to
Building Economies
• Economic Development Corporations
• Community Mentorship
• Partnership Model
• Royalties & Equity
• Building an Aboriginal Economy
6
Building Progressive Relations
• What can non-Aboriginal companies do
now?
– Build Market Space
– Invest in Relationships
– Begin de-risking projects
– Develop Capacity
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What is PAR
PAR is a corporate responsibility assurance
program designed to provide businesses with a
comprehensive framework that helps them track
and measure performance in Aboriginal
Relations, creating improved outcomes; and
provides Aboriginal communities with
confidence in their relationships with
participating companies.
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What is PAR
Online Assessment and Management Tool:
An online assessment, management, and reporting
program that supports progressive improvement in
Aboriginal relations
Verification and Certification:
Provides independent, third-party verification, and
Aboriginal business led certification that confirms
corporate performance in the four key areas of
Aboriginal relations at the bronze, silver or gold level.
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Old PAR Program
PAR Pillars:
– Aboriginal Employment
– Community Investment
– Community Engagement
– Business Development
PAR Levels:
– Participant
– Committed
– Certified
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New PAR Program
PAR Pillars:
– Aboriginal Employment
– Community Relationships
– Leadership Actions
– Business Development
PAR Levels:
– PAR Self-assessment
– Committed – 3 phases
– Certified
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New PAR Criteria
Leadership Actions:
Actions to reinforce an organizational focus on
Aboriginal relations by leaders of the organization.
Community Relationships:
Looks at two components, engagement and support.
Engagement: providing time and resources to develop
and sustain constructive relations with communities.
Support: providing financial and/or in-kind support to
develop and sustain positive relationships.
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New PAR Levels
1. PAR Self-assessment:
Easy triage tool for companies to assess their current
performance in the PAR areas of focus
2. PAR Committed:
3 stage graduated process for companies to build
towards PAR certification
2. PAR Certified:
A clear, simplified criteria and score for companies to
self-asses their performance against the PAR criteria
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Other PAR Program Changes
1. Flat fee structure
Plan your companies PAR costs over program lifecycle
2. Transparency:
All PAR documentation available on CCAB website
3. Support:
Trained and certified PAR support providers
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Why PAR
Participant Benefits:
• Competitive Advantage
• Relationship Building
• Strategic Planning, Employment and Procurement
Opportunities
Aboriginal Community Benefits:
• Economic, Capacity, and Business Development
Opportunities
• PAR Assurance
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Who uses PAR
Over 40 companies across all sectors of the economy,
including finance, resource development, oil and gas,
professional services, and public agencies.
Certified companies promote their certification with a
PAR logo that signals to Aboriginal communities,
businesses, and current and potential employees that
they are good business partners; great places to work;
and are committed to prosperity in Aboriginal
communities.
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Procurement and Partnerships
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OMX Company Background
Canadian made technology SME founded in 2011 specifically to
discover and manage suppliers;
OMX was 100% funded by Canadian founders, private angel
investors, venture capital and Canadian government organizations
such as Coral CEA, FedDev, Mars Investment Accelerator, NRC-
IRAP and The Ministry of Economic Development Innovation;
OMX's advisory board include technology/supply chain experts;
Partnered with the CCAB, OMX is focused on increasing opportunities
to Aboriginal communities across Canada.
The OMX Technology Platform
OMX is an online procurement marketplace and economic impact
tracking tool.
How it works:
● Connect with local partners: suppliers, technologies, academia and
CCAB Aboriginal Business members;
● Issue Opportunities and RFPs to local partners and suppliers;
● Manage all data, documentation to track local impacts;
● Track and report on total economic impacts in real time;
● Data analytics on long term economic benefits to the region or
country based on custom developed Statistics Canada multipliers;
● Prepare superior, detailed proposals to Government and
communicate your impacts to the economy.
RFP Engine
Issue RFPs/RFIs, to seek out
potential suppliers CCAB
Aboriginal Business
Members
Question and answer tools
allow for an open/
transparent tendering
process
Manage responses and track
data required on where
opportunities were
provided across Canada
RFP Engine feed to CCAB
All RFPs also get listed on the CCAB website for call CCAB
Aboriginal Business Members
Economic Benefits
Calculate exact economic benefits
that will result from specific
programs;
Including political ridings,SME and
Aboriginal impacts if desired;
Roll up job and revenue data from
many tiers in the supply chain,
map political districts;
Enhanced data visualizations to
use in PR and government
reporting.
Data Analytics
Reports
Alternative/Social Media &
Infographics Samples
What is Tools and Financing for
Aboriginal Business (TFAB)?
An online resource connecting Aboriginal
entrepreneurs with the tools and
resources they need to grow and maintain
their ventures
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TFAB supports entrepreneurs
in six areas:
• Finance
• Operations
• Human Resources
• Marketing & Communications
• Computers & Technology
• Legal & Regulatory
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TFAB Areas
• Finance: Improving access to and
management of business finances
• Operations: Conducting business on a day
to day basis
• Human Resources: Building and maintaining
a high performing team
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TFAB Areas
• Marketing & Communications: Creating
connections to new customers
• Computers & Technology: Using technology
to improve business and business practices
• Legal & Regulatory: Simplifying laws and
regulations impacting Aboriginal business
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Added value for
CCAB members
• Discounted services
• Access to Mentorship
• Procurement Tool
• Community Forum
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TFAB model
• An Aboriginal entrepreneur in any part
of the country can access the TFAB
portal via www.ccab.com/tfab
• Tools and resources are available free
of charge in all six areas
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Why should you participate?
• Exposure to 37,000 Aboriginal businesses across
Canada
• Become part of a $31b economy
• Opportunity to make new connections with
Aboriginal businesses
• Patronage from Aboriginal entrepreneurs
• Logo added to TFAB website and other marketing
materials
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CCAB Business SupportPAR: Progressive Aboriginal Relations
Procurement: Powered by The OMX
TFAB: Tools for Aboriginal Business
Research at the CCAB• CCABs research department has produced cutting edge data and
insight into the Aboriginal economy. We have a variety of important
projects on the go, all trying to understand the growth and strength of
Aboriginal business in Canada, as well as what can be done to
support and communicate this success.
• Working to deliver value for Corporate Canada, Aboriginal
businesses, Government and academics. The result of this work is
evidence based research that can inform policy, shape corporate
strategy, and provide best practices for Aboriginal businesses.
• The research CCAB produces is non-partisan, and is conducted with
credible partners such as Environics Research Group, Engineers
Without Borders and the University of Victoria. We receive funding
support from a similarly diverse group of sponsors, including Federal
and provincial governments, the Social Sciences and Humanities
Research Council, as well as a number of corporate partners. 40
Ongoing Projects• CCAB has recently completed National and provincial research on
Aboriginal entrepreneurs, interviewing over 1,100 First Nations, Inuit and Metis business owners to deliver cutting edge statistics on the state of these hard working drivers of the Canadian economy. We also produce similar reports focused on Aboriginal Economic Development corporations. These projects have had major success influencing provincial and federal policy and contributed to a $25 million dollar economic development fund in the province of Ontario.
• We are currently partnered with Engineers Without Borders to build the business case for increasing the procurement spend on local Aboriginal suppliers in the mining industry. This project is supported by our corporate partners like Cameco and SNC-Lavelin, who understand the importance increasing Aboriginal access to procurement opportunities.
• Our research department has just finished holding National roundtables to discuss our research supported by the Social Science and Humanities Research Council (SSHRC). This work was a fantastic opportunity to showcase some of the work we have done, and get feedback form participants across the country. Events were held in Victoria, Edmonton, Winnipeg, Toronto and Halifax.
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Background
• Purpose: to provide representative and reliable data on Aboriginal
entrepreneurship in Canada
• 2015 survey involved telephone survey with 1,101 First Nations (on-and-off-
reserve), Inuit and Metis business owners across Canada, sourced from
lists developed by CCAB
• Follow-up to a 2010 survey conducted by the CCAB
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What do Aboriginal businesses look like?
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Wide variety of business
characteristics
37%
63%
GENDER
AGE DISTRIBUTION
EMPLOYEES
64% No employees
36% Have employees
GROSS SALES REVENUES 2014
25% <$50,000
24% $50k - <$250k
21% $250k and over
29% refused
<35 35-44 45-54 55+
7% 20% 30% 38%
BUSINESS TYPE
61% Sole proprietorship
12% Partnership
27% Corporation
IDENTITY
52% Métis
47% First Nations
2% Inuk
EDUCATION
40% high school diploma or less
28% college diploma
19% undergraduate degree
13% graduate degree
INDUSTRY
62% Service
17% Secondary
12% Construction
10% Natural resources
OPERATE FROM HOME
66% yes
OPERATE ON-RESERVE
56% of First Nations businesses
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Mostly established businesses,
looking for stability and profitability
67%
25%6% 2%
Stable &profitable
Growth &expansion
Both equally dk/na
Main business goal right now
Among established
businesses
11%
88%
Start-up Established
Start-up vs. established
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Operate across the country and
even internationally
85%
73%
48%
26%
18%
85%
76%
50%
25%
17%
Within local community
In other parts of territory/province
In other territories/provinces in Canada
In the United States
In countries other than Canada/U.S.2010
2015
Location of clients
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How successful are these businesses?
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Most perceive themselves to be at
least modestly successful
Perceptions of business success
12%
11%
37%
41%
40%
41%
9%
6%
2010
2015
Extremely successful Very successful
Somewhat sucessful Not very/at all successful
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Majority reporting a net profit
has increased since 2010
61
76
29
18
10
6
2010
2015
Net profit Net loss dk/na
Net profit or net loss for previous fiscal year
50
Four in ten have increased revenues
35 37
24
4
41 40
18
1
Increased Stayed the same Decreased dk/na
2010 2015
Change in gross sales revenues for past
year
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Continued optimism for the future
Likelihood of running business in five years
71
70
17
18
4
6
6
5
2010
2015
Very likely Somewhat likely Not very likely Not at all likely
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What are the risk factors?
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Labour force issues are among the
biggest obstacles to growth…Obstacles to growing business over the next two years
(Rated 4 or 5 out of 5)
2010 2015
Attracting employees with right skills or qualifications
(among businesses with employees)
n/a 39
Overall economic conditions 46 35
Access to equity or capital 38 31
Government policy, rules and regulations 34 31
Retaining valued employees (among businesses with
employees)
n/a 30
Access to financing 43 29
Competition 38 27
Cost of doing business, such as input costs 38 24
Reliable Internet access, telephone and other IT
technologies
n/a 21
Other infrastructure such as electricity, water and roads n/a 19
Access to support for employee training and skills
development (among businesses with employees)
n/a 2154
…particularly finding qualified
Aboriginal employees
Ease of finding and retaining Aboriginal employees
Among businesses with employees
10
20
16
34
35
22
33
14
6
10
FindAboriginalemployees
RetainAboriginalemployees
Very easy Somewhat easy Somewhat difficult Very difficult dk/na
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Many face difficulties identifying and
accessing funding sources
Ease of obtaining various forms of financial support
12
18
27
27
25
29
33
30
27
27
23
23
24
18
7
11
11
8
9
9
Locate potential outside sources of funding
Meet the qualifications or requirements forlending
Apply for financing, such as filling out formsand providing necessary information
Get access to expert advice/mentoring onfinancial issues related to your business
Very easy Somewhat easy Somewhat difficult Very difficult dk/na
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Most have infrequent access
to expert advice/support
Actively seek external advice or input for business
30
8
29
15
14
22
27
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In informal ways, such as throughnetworking or a mentor
In formal ways, such as through anadvisory board or hiring a
consultant
Often Sometimes Rarely Never
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Aboriginal Economic
Development CorporationsA Survey of Ontario AEDCs
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Aboriginal Economic
Development Corporations• Aboriginal Economic Development Corporations (AEDCs) are an important
dimension of the Aboriginal business community. AEDCs are the economic and business development arm of a First Nations, Métis or Inuit government, and are a major economic driver in Aboriginal communities. These community-owned corporations invest in, own and/or manage subsidiary businesses with the goal of benefiting the Aboriginal citizens that they represent.
• Many AEDCs have become business success stories and the dynamism in Aboriginal economic development appears to come as much from community-owned as from privately-owned businesses. Yet the available data on Aboriginal businesses typically do not include businesses that are community-owned.
• Community and Commerce, a research series led by the Canadian Council for Aboriginal Business (CCAB), is designed to fill that gap. The CCAB undertakes this research to better understand what AEDCs look like, what makes this business model successful and what holds it back.
• This 2015 edition of Community and Commerce Ontario builds on 2013 research also conducted in Ontario as well as a 2011 national survey of AEDCs. Reports for the 2015 edition of Community and Commerce Ontario, as well as the two previous editions, are available for download at www.ccab.com.
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Research Findings• There is remarkable continuity between the findings of this research and the
2012 study, indicating that despite the challenges involved, interest and confidence in the AEDC model remains strong.
• The main motivation behind the AEDC model is the desire for community autonomy and control, and AEDCs are increasingly being seen as an effective way to create an independent and sustainable source of wealth to fund this goal. Two-thirds of AEDCs say they have been extremely (29%) or very (38%) successful at meeting their objectives to date.
• AEDCs are creating economic opportunity in terms of business development and job creation, and this is allowing them to fund a range of community facilities and programs. However, the AEDCs generally like to stick to their core competencies (i.e., running businesses) and leave decisions about how to use the revenue to Chief and Council, who are best positioned to spend the dollars in a meaningful and efficient way.
• In light of the success stories, it is not surprising that AEDCs are being launched at a rate similar to 2013 and are also being implemented by Aboriginal communities who fall outside the traditional government funding model (e.g., those with no reserve lands; Métis communities).
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Research Findings
continued…
• As in 2013, many are
involved in a range of
industries. The most
popular include services
such as energy (38%),
followed by construction
(25%), communications
(21%) and forestry (4%).
• According to most AEDCs,
a key success is balancing
independence and
autonomy for the EDC with
a strong connection to the
community and its
government.
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Current Environment and
Best Practices• There is no “one size fits all” approach to AEDCs. However, there is a consistent pattern of
ways to mitigate risk, including addressing governance and community engagement issues and developing partnerships.
• There continues to be a trend away from setting up AEDCs as corporations and towards other structures such as limited partnerships or non-profits. Otherwise, there is variability in terms of the industries in which AEDCs are involved (e.g., services, energy, construction, communications, finance) and the markets that they serve (including local, domestic and international).
• A key success factor identified by AEDCs is remaining separate and arms length while maintaining political support for the AEDC. Many AEDCs include Chief, Council and/or community members on their Board for transparency, since their trust is ultimately what permits an AEDC to conduct its business independently.
• AEDCs work hard to communicate with and engage community members, to ensure they have “social license” to operate and to reduce the risk of having projects derailed by community opposition.
• Partnerships are widely used by AEDCs as a way to access money, to take advantage of opportunities that are beyond the current expertise of the AEDC, and/or to build capacity. Two-thirds of AEDCs have partnerships with other organizations, and another eight percent are actively pursuing one.
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Success and Needs• Ultimately, AEDCs believe they succeed because of the people
involved, drawing from the expertise and commitment of the
management team, the vision and support of political leadership
and the labour market in their communities. It is not surprising
then, that capacity building is identified as a major challenge to
growth.
• AEDCs identify two main types of training needs. The first involves
the higher level executive skills needed to run an AEDC, such as
business administration, finance and Board training. The second
training area is helping community members develop hard skills
specific to the AEDC’s industry (e.g. heavy equipment, industrial
training) and to achieve the necessary credentials to qualify for these
jobs (e.g., driver’s license, apprenticeship hours).
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About the research In Aboriginal communities across
Canada, procurement of local
goods and services by mining
companies can drive business
development, create local jobs,
and contribute to improvements
in well-being. Today, companies
across Canada are increasingly
recognizing that developing
partnerships with Aboriginal
communities is an effective
business strategy that mitigates
social risk and improves long-
term operational security for
extraction activities.
The MSV venture of EWB
Canada partnered with the
CCAB to conduct national
research to investigate the
economic and social impacts of
procurement from Aboriginal
suppliers and to further develop
the business case for mining
companies to procure goods and
services from Aboriginal
businesses. Between February
and June 2016, the research
team interviewed over 70
individuals including
procurement staff, Aboriginal
suppliers, AEDCs and Aboriginal
government representatives to
compare best practices and
highlight successes and
opportunities for improvement.
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Findings
• Few companies have hard targets
• Most contracts are labour intensive,
service work
• IBAs overarching mechanisms guiding
procurement
• Location shapes impact & opportunities
for Aboriginal communities
• Companies struggle to define Aboriginal
businesses and create systems/metrics
to measure progress
The business case
Recommendations• National strategy aligning training and inclusion
• National/regional database to coordinate & match opportunity with skilled people
• Set realistic targets for inclusion, make public commitments & measure outcomes
• Include Aboriginal procurement in industry association guidelines
• Leverage contracting opportunities to increase Aboriginal involvement
• Increased funding for Aboriginal business development
• Training & awareness for the financial services industry
• Strive for early, transparent and engaged communications with Aboriginal suppliers
“We aren’t just giving a cheque to the community. No –we are focusing on creating opportunities, apprenticeships programs and education programs and utilizing these programs… We moved from the entitlement stage to ‘I want to be a partner.”
“We found that relying on local contractors gave us more stability and more flexibility, and they are there and available. They are not just there to finish this project and go away. They are there to do a good job so their interest in the quality is higher. Quality, safety and the relationship, which is what we are looking for.”
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Innovative partnership
examplesThe Ktunaxa-Teck Procurement and
Employment Operational Working
Group (PEOWG) at Teck’s Elk Valley
operations in British Columbia is an
example of a supportive partnership
structure designed to promote
mutual growth and business
development. The PEOWG, which
meets every two months, facilitates
relationship building and cooperation
between the Ktunaxa Nation Council
(KNC) and Teck to increase
employment
and procurement opportunities for
Ktunaxa Nation members and
businesses. The group addresses
issues such as training, education,
employment, job readiness,
procurement, and business
development.
Another successful partnership
example is the Secretariat to the
Cree Nation – Abitibi-
Témiscamingue Economic Alliance in
Quebec. The Secretariat was
created as a non-profit organization
to act and build alliances between
Aboriginal and non-Aboriginal people
in Quebec, and is housed in Val
d’Or, a common meeting place for
people from all over the territory.
Within this partnership, members
work to promote sustainable
relations and socio-economic
alliances between the Cree Nation
(Eeyou Istchee), Jamésie (non-
Aboriginal residents), private industry
and the Abitibi-Témiscamingue and
Nunavik regions and foster
harmonious development through
professional working groups,
networking sessions and other
events.
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Large contracts
SMEs may not be able to provide all desired services
SMEs are left out of tendering process
Hurdles to capacity development
Long timeframe for capacity
development
Difficulty building management
capacity
Concerns around community impact
and Aboriginal ownership
Administrative requirements for local suppliers
Official legal requirements are
hard to meet
High cost of meeting
requirements through training
Lack of awareness of supply chain
timeframes
Mismatch between production cycle and mine needs
Insufficient planning for industry and
training
Delayed payments and high interest
rate disproportionately
threaten SMEs
Challenges to
Aboriginal
Procurement
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Our Research
PartnersCameco – Operations in Saskatoon and interviews with local Aboriginal suppliers and
community members.
Goldcorp - Operations in Ontario and interviews with local Aboriginal suppliers and
community members.
PotashCorp - Operations in Saskatoon and interviews with local Aboriginal suppliers
and community members.
Suncor- Operations in Alberta and interviews with local Aboriginal suppliers and
community members.
Tahltan Nation Development Corporation – Interviews with staff and suppliers in
northern British Columbia
Teck - Operations in Kamloops, BC and interviews with local Aboriginal suppliers and
community members.
Vale - Operations in Labrador and interviews with local Aboriginal suppliers and
community members.
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