Closing the gap in the Indigenous business sector

The Indigenous business sector has seen huge growth in recent years, but there are large gaps that still need to be addressed

Previously, Aboriginal and Torres Strait Islander people have been excluded from the mainstream economy. Today, Indigenous people are choosing business as a vehicle for self-determination and to overcome historic barriers to their economic participation.

The Indigenous business sector is thriving, and data shows Indigenous businesses are in every state and territory, in every industry sector, and data also demonstrates that those businesses are growing.

Kirrikin, an internationally recognised, fashion brand and social enterprise that celebrates Indigenous art and artists, is sold across Australia, the USA and Europe and has won a series of awards. Founded by Amanda Healy in 2014, Kirrikin works with Aboriginal artists from across Australia.

Panku Safety is an Indigenous-owned business in Melbourne and Perth that is a specialist provider of tailored PPE and workplace safety products. Founded by Jadah Pleiter in 2020, Panku means ‘united, together’ in Nyiyaparli.

While Mayi Harvests Native Foods in Broome specialises in sustainable harvesting of Australian native foods. Founded by Pat Torres in 2006, it supplies products nationally.

A growing force to be reckoned with

From approximately 4,000 Indigenous Australians being in business or self-employed in 1991, now there are close to 15,700. Between 2011-2012 and 2021-2022, numbers of sole traders grew by 11.3% per annum and partnerships grew by 5.8% per annum.

This growth has been supercharged by the cornerstone of the Federal Government’s Indigenous business strategy, the Indigenous Procurement Policy (IPP). Introduced in 2015, the IPP’s primary purpose is to stimulate Indigenous entrepreneurship through preferential procurement procedures for small-to-medium businesses.

Government portfolios must proactively include Indigenous business in their procurement activities and the IPP was strengthened in 2025. The target for Commonwealth procurement from First Nation Australian businesses increased to 3% for 2025-2026 and will reach 4% by 2030.

According to government, up to February 2026, the IPP has resulted in 86,000 contracts being awarded to 4,700-plus Indigenous businesses.

Addressing the gap

Despite this success, a critical portion of the Indigenous economy is still missing out.

Research conducted by Professor Ian Williamson and me into Indigenous entrepreneurial leadership in Australia, found three main types of Indigenous businesses in Australia;

Open market firms: Firms operating, competing and winning work in their own industry and owned and operated by Indigenous Australians.
Knowledge broker firms: Businesses that work to broker knowledge, practices and networks between Indigenous Australia and non-Indigenous Australia, like consultancy firms and cross-cultural training business.
Cultural firms: Businesses that trade cultural services and products.

These business types often overlap – cultural firms may be open market businesses and knowledge broker firms can also be cultural firms.

But procurement opportunities are tailored to business-to-business firms, which suits open market and knowledge broker businesses. However, cultural firms often operate a business-to-customer model and find themselves left out of the IPP loop.

Strong policy measures

We are missing a considered plan to support the creation and continued growth of all Indigenous businesses – not just those set up to win a government contract.

There needs to be specialist policy to support Indigenous cultural businesses, which are more likely to be in regional or remote locations and trying to attract customers in places where markets are thinner, and where there is a stronger need for brand recognition and marketing.

There needs to be greater emphasis on Indigenous business education and development. Indigenous entrepreneurs need to be supported to work on their businesses, not just in their businesses so they can improve their products and service offering.

Increasing tailored educational support

Melbourne Business School’s MURRA Indigenous Business Leadership Program masterclass for Indigenous entrepreneurs and managers focuses on business acumen education – from strategy, marketing, finance and HR to leadership and negotiating.

Government support to establish tailored, community-based Indigenous business education offerings that work with established infrastructure in towns and communities across regional Australia can strengthen individual firms. This provides a collective place for Indigenous entrepreneurs to step into a learning environment where they can work on their business together. It will help a new generation of Indigenous entrepreneurs to apply their skills, experience and Indigenous knowledge to critical problems and opportunities.

Funding is also needed for well-designed and networked business idea and development programs that emphasise financial literacy and marketing at an Indigenous community level. There should be a particular focus on regional and remote Australia.

Unearthing Indigenous excellence

Importantly, these programs should be led by Indigenous entrepreneurs to unearth the Indigenous business excellence within communities. Also critical is building market-engaged virtual platforms that attract customers to cultural firms’ offerings.

These days, every business must have a web presence, but the opportunity remains to build sector-specific virtual platforms and attract larger customer bases that are networked into well-trafficked commercial platforms. This would drive visibility and demand for cultural products and services.

Some steps have been taken to ensure a competitive playing field for Australian Indigenous businesses. Melbourne Professional Education at the University of Melbourne has created a series of micro-credential programs for professionals that cover areas such as the Sharing of Indigenous Knowledges, Indigenous Cultural and Creative IP, Indigenous Community Research and Acknowledgement of Country.

However, the sector needs more innovative and culturally-based business education and development to supercharge a broader spectrum of Indigenous businesses in Australia.

Professor Michelle Evans: Director, Dilin Duwa Centre for Indigenous Business Leadership; Professor, Leadership, Faculty of Business and Economics, University of Melbourne.