Aboriginal Community Economic Development: Overcoming Barriers to Aboriginal Entrepreneurship

Aboriginal entrepreneurs are key to building a healthy economy on-reserve, providing jobs, and slowing the outflow of money and young people who are leaving to look for economic opportunities. This study explores the question: how can Aboriginal communities foster a supportive climate for Aboriginal entrepreneurs and business startup? The literature review finds a high degree of compatibility between the characteristics and strategies of community economic development and Aboriginal economic development. The unique aspects of Aboriginal economic development are further examined, including the history of Aboriginal communities, challenges faced, the importance of long-term approaches, cultural issues that impact Aboriginal economic development, and critical success factors. The review then addresses the question, "Do these differences affect the role the entrepreneur plays in Aboriginal economic development?" It makes the case that the prominence of the family and the overriding importance of cultural preservation require a different entrepreneurial behaviour. From this analysis, a series of research questions are developed and answered, using data from three First Nations communities: 1. What are the barriers experienced by Aboriginal people who attempt to start-up businesses in Aboriginal communities?; 2. What has been done in Aboriginal communities to overcome these barriers?; 3. How can Aboriginal communities assess their capacity to support Aboriginal businesses? Following the assessment process, the study examines the actions three B.C. First Nations would consider to support their community's capacity and readiness to include Aboriginal entrepreneurs in business start-up and growth. The findings reveal that the most pressing barriers in Aboriginal communities are: the lack of information and support on business start-up, a lack of infrastructure in the community (including the absence of an economic development strategy, a business approval process, and a commercial code), difficulty in securing financing, and the lack of support in the community for business start-ups. The thesis concludes by comparing the identified barriers in three B.C. Aboriginal communities to those reported in the literature, reviewing strategies for assessing the barriers, and outlining an approach to develop an action plan appropriate for each of the communities.