Atlantic Economic Council provides preview of report on Indigenous economic impacts

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TRURO, N.S. — Indigenous businesses and communities are making a positive economic impact in Atlantic Canada.

In a presentation by the Atlantic Economic Council in Truro last Tuesday, senior policy analyst Fred Bergman broke down information from their report on the economic impacts of Indigenous business throughout Atlantic Canada, providing the benefits, challenges, and data that will be reflected in their final report.

At the press conference, Millbrook First Nation Chief Bob Gloade spoke on how business and economy play into reconciliation, mentioning the various regional projects, including the We’kopektik Inland Shipping Terminal planned for Onslow.

“Economic development would be a key contributing factor in how we grow our communities,” said Gloade.

Overview

“One of the most significant advantages the Indigenous economy has is a young and growing population,” said Bergman. According to 2021 census data, the Indigenous population is seven years younger on average than the non-Indigenous population.

Bergman added the proportion of the Indigenous population is projected to grow to 9 per cent by 2041. In 2021, census data found Indigenous peoples made up 6 per cent of the population of Atlantic Canada.

“If the labour market and education gaps of Indigenous peoples were closed by 2041, Atlantic GDP would increase by about $2.5 million and by about 10,000 jobs,” Bergman said, quoting statistics from a report by the Centre for Study of Living Standards for the Assembly of First Nations.

He also spoke of partnerships with Indigenous communities and businesses and the two-way benefits they can provide, such as capacity building, mentorship, market access for Indigenous businesses and access to the Indigenous labour force for non-Indigenous businesses.

Challenges

One of the challenges Bergman spoke of is the inability of Indigenous entrepreneurs to acquire business loans, as section 89 of the Indian Act does not allow those living on reserve to mortgage or own property there.

“When you have a mortgage on your home, that gives you some collateral and credit history, such that you can borrow money, potentially to start your own business,” said Bergman.

Some Indigenous communities, such as the Membertou First Nation, allow home ownership and mortgaging through the First Nations Market Housing Fund.

Bergman also spoke on the education gap between Indigenous and non-Indigenous people. He said according to the 2021 census, around 14 percent of Indigenous people in the Atlantic region possessed a university degree, compared to 21 per cent of non-Indigenous people; however, education rates for Indigenous people are improving.

“About three per cent more Indigenous people held a high school diploma in the 2021 census versus the previous census in 2016,” said Bergman. “Another two percentage points more held a university degree over that same time frame.”

Rural broadband access is also an issue, with Bergman stating their 2022 report on broadband access found many rural Indigenous businesses and households lack high-speed internet access necessary to access the digital economy and participate in e-commerce.

Provincial impacts

“More than 5,100 Indigenous people in the Atlantic region were self-employed according to the 2021 census,” said Bergman. This grew by 37 per cent from 2016 to 2021, where non-Indigenous self-employment grew by 21 per cent.

“This means there are almost 7,000 Indigenous entrepreneurs in Atlantic Canada.”

Over 10 per cent of Indigenous employment in Nova Scotia is self-employment, said Bergman. Newfoundland and Labrador, however, have the largest number of Indigenous businesses, totaling around 40 – 42 per cent of all Atlantic Indigenous businesses with paid employees.

The total Indigenous economic impact in the Atlantic region for 2020 is as follows:

Atlantic region:

• $5.6 billion in GDP (gross domestic product).
• Around 83,000 jobs.
• $3.5 billion in wages and salaries.
• $1.8 billion in taxes.

Newfoundland and Labrador

• $2.3 billion in GDP.
• Around 29,000 jobs.
• $1.5 billion in wages and salaries.
• $890 million in taxes.

Prince Edward Island

• $110 million in GDP.
• Around 1,900 jobs.
• $70 million in wages and salaries.
• $30 million in taxes.

Nova Scotia

• $2 billion in GDP.
• Around 33,000 jobs.
• $1.2 billion in wages and salaries.
• $550 million in taxes.

New Brunswick

• $1.2 billion in GDP.
• Around 19,000 jobs.
• $710 million in wages and salaries.
• $330 million in taxes.

The full report from the Atlantic Economic Council is expected to become available in late spring 2024.