Future rosy for entrepreneurs

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Findings from a recent survey of 1,126 Aboriginal entrepreneurs show that 72 per cent of Aboriginal entrepreneurs reported profits in 2002, and 43 per cent reported an increase in sales revenues from 2001. Sales remained stable for 39 per cent of businesses surveyed.

Nationally, nearly two out of three Aboriginal business owners (63 per cent) anticipated growth in the next two years. This proportion reached 70 per cent for entrepreneurs residing in British Columbia and the Yukon, where it was highest.

The vast majority of businesses (85 per cent) operated full time in 2002, and two out of three had been in operation for more than five years.

Approximately five out of every 10 Aboriginal businesses had been in operation for 10 years or more in three sectors-primary industries; construction; and manufacturing,, transportation and warehousing. The youngest businesses were in professional, technical and social services, where only 30 per cent had been in business for 10 years or more.

Aboriginal business owners in primary industries were the most likely to hire Aboriginal people, with seven out of 10 reporting one or more Aboriginal employee. Professional, technical and social services had the lowest proportion of Aboriginal employees with 44 per cent. Overall, over one-third (35 per cent) of Aboriginal businesses had at least one full-time employee.

One-quarter of Aboriginal entrepreneurs had taken business training at the college or university level. Accounting, bookkeeping, business administration and management were the most popular courses.

In terms of business objectives pursued, Aboriginal entrepreneurs rated stability (84 per cent) and profitability (80 per cent) as very important, followed by personal and family employment (69 per cent).

Nationally, most Aboriginal business owners (83 per cent) used personal savings as a source of start-up funds. Personal savings were used most frequently for businesses in the professional, technical and social services sector, where start-up costs are generally lower.

Information provided by Statistics Canada, The Daily, catalogue number 11-001-XIE.