INDIGENOUS SME
The Indigenous business communities are
· Deprived Socioeconomic Status
position. They face unique challenges
Most of the Indigenous entrepreneurs aren’t well-
obstacles have hindered their growth, and
average Canadians, with just a few having university
already in an economically disadvantaged almost every single day. And all of these
they have found it pretty difficult to sell their products and services to the global marketplaces.
Key Challenges Faced by the Indigenous Businesses in Canada
educated. Their education level is lower than the
degrees. The Indigenous Peoples account for around
30% of Canada’s federal prison population. Also, of all the women incarcerated federally, approximately 42% are Indigenous. Ironically, the small Indigenous
businesses are generally run and owned by women.
On average, the Indigenous entrepreneurs have lesser financial resources and have a small base of assets for collateral compared to the non-Indigenous
Here is a gist of the challenges that most of
businesses. This makes it hard for Indigenous
facing due to global disruptions related to
growth and sustainment.
the Indigenous businesses in Canada are
businesses to access the working capital needed for
the pandemic.
· Poor Access to Working Capital This is the central issue for most of the
Indigenous businesses in Canada. Most of
them do not have a good relationship with traditional banks. Also, they often face
institutional bias as they are often seen as a higher risk. These businesses often lack the collateral needed to get loans and credits.
Even though some have assets, it gets tough to secure a loan through them.
Conclusion Keeping every single aspect listed above in mind, and in response to the global pandemic, the First Peoples Economic Growth Fund (FPEGF) is striving to deliver the Emergency Loan Program to the Indigenous
businesses in Canada. This is termed the Indigenous
Business Stabilization Program (IBSP) and is given on behalf of the Government of Canada. FPEGF has approved a little more than $2.0 million for the
businesses that were severely impacted by Covid-19. Additionally, when the pandemic first hit, FPEGF
deferred all the loan payments for 6 months. Also, the company extended loan payment deferrals to some
· Remoteness of Communities
of their clients who wanted additional assistance for
Be it in Nunavut, Northern Ontario, Labrador,
local clients to help them in whichever way they can.
location of the Indigenous businesses often
may arrive unannounced in the future.
tough to ship goods. It is also logistically
In case you have any queries related to FPEGF loan
roads, highways, or airports nearby. Even
FPEGF and get all your questions answered.
proper internet services, staying connected
To know more about Indigenous businesses and small
suppliers, customers, and financial
forget to subscribe to our monthly CanadianSME
or the Northwest Territories, the remote
creates several problems. Sometimes it gets difficult to ship goods if there are no proper without a reliable network connection and
survival. FPEGF plans on continuing its work with its They will also monitor new recovery programs that
referrals, consult with your Loans Account Manager at
gets difficult. Making communication with
and medium-sized businesses in Canada, do not
institutions is often troublesome.
Small Business Magazine.
41 - IndigenousSME - June-July 2022
