BANAC helps budding entrepreneurs

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In the business world hard work and intelligence pays off.

But it's mostly hard work that bets your business off the ground, according to John Louw, the general manager of Business Assistance for Native Albertans corporation (BANAC).

It's what helps Treaty Indians and Metis people start businesses and stay in them, he says.

Formed as an independent corporation by the Alberta government in 1981, BANAC offers a wide array of services to budding Native entrepreneurs. BANAC conducts feasibility studies, helps create business plans, helps find financing and even

assists with management.

The corporation is currently involved with 25 companies, and historically, has a 100 per cent success rate, Louw adds.

Businesses are successful because the work ethic is stressed right from the moment BANAC meets a prospective client. Clients are asked what kind of business they want, where it will be, what the capital cost and operating expenditures are, what

monies they are willing to pump into the business, and more.

If the client has trouble answering any questions, they are given a booklet to direct them in their search for the answers.

An idea may be good, but clients must also be willing to supply 10 to 20 per cent of the company's capital costs, says Louw. This way commercial bands and other financial outlets will be willing to supply the rest of the costs. He notes that

BANAC works with commercial banks, the Native Economic Development Programs, the Aboriginal Economic Development Strategy, Aboriginal Indian Investment corporation, Native Venture Corporation, and Apteegosan Development Inc.

Louw says BANAC does not have a typical client.

The corporation also helps ailing Native businesses.

"We go in and turn them into something good," he claims.

Clients prevent business failures by keeping in touch with the corporation. They call constantly about business decision and when they want advice. This way the corporation helps the business stay on its feet, Louw says.

"We are an incubator," he says.

The corporation "incubates" businesses by helping businesses begin and continuing to help them as it develops, he explains. In return BANAC gets a small monthly fee.

Louw notes if the corporation depended on the government for its funding, it would be in a deficit, but the companies' contributions nulify that.

Two years ago the corporation began a non-profit marketing company of its own - Native Creative Group of Canada Inc.

Louw is proud of the operation because it employs 20 single mothers who used to depend on welfare, lived alone and had children.

This is good for savings to the taxpayer and income tax contributions to the government, Louw states.

The Native women produce handmade silk scarves, porcelain jewelry, woven rugs, Native prints and cards.

The women used part of the first year to train for their crafts. Then they began producing.

"We have double our sales in our last year," Louw says. "If Native Creative keeps up its performance, it will (soon) be able to stand on its own feet."

BANAC wants the creative group to expand so it can hire more single Native mothers. It needs more customers to expand, and to reach more customers they need to widen their market - to do this it got a $45,000 grant in September from the

federal Native Economic Development Program (NEDP).

The money will be used to conduct a national marketing strategy for its handmade products. The money is to be spent strictly on advertising, promotional materials, trade shows and product development.

The products are currently marketed in Eaton's, Robinsons-Ogilvie in Ontario as well as in the large chain of United Cigar Stores. The products are also being marketed in 300 independent stores. There are six independent agents in Canada and six

in the United States to encourage other stores to carry the products.

The porcelain and silk operations are below BANAC offices and are two years ahead of the times, Louw claims, so no pictures were allwed of the staff at work.

Louw refuses to reveal how much the 10 women produce per day in dollars. He only says they work hard.