Are First Nations Atlantic Canada’s Best-Kept Business Secret?
Missed Connections
Jason Peters says that in Atlantic Canada each year, nearly a billion dollars worth of project and service contracts are struggling to find bidders.
For a region that’s supposed to be struggling economically, that could be hard to get your head around.
So where are all of these contracts hiding? According to Peters, in plain sight – with our First Nations communities.
“There still seems to be a cloud of mystery surrounding First Nation communities,” says Peters.
As a First Nations businessman who grew up “off the reserve” Peters has first-hand experience of both worlds. His new company, Nation2Nation Consulting, is trying to remove that cloud of mystery by helping build profitable partnerships between First Nations communities and Canadian businesses.
“Federal and Provincial governments have Aboriginal-specific funding pots. Many of these program dollars can be accessed in partnership with non-Aboriginal companies, communities, and organizations.
Aboriginal people – including First Nations, Inuit, and Métis – are the fastest growing demographic in Canada. That means that their communities have a significant (and growing) list of projects and services they require.
According to Peters, the opportunities range from construction and highway developments, to fisheries and gaming, sport and recreation infrastructure, and health centres.
“The Department of Indigenous and Northern Affairs is removing legislative barriers to ensure large-scale projects on reserve that are promoted by First Nations can proceed,” explains Peters.
“This funding has been used to develop businesses, community infrastructure such as highway developments and expansion, and to gain access to other industry opportunities such as commercial fisheries.”
But despite the extensive list of projects – with guaranteed funding – that are out there, Peters says lots of companies aren’t paying attention to this market, and they aren’t bidding on its business.
This not only indicates a significant oversight on the part of Canadian businesses, but it also has a detrimental effect on First Nations communities. With fewer companies bidding on these contracts, the communities don’t benefit from the same level of competition that other calls for tender typically enjoy.
Understanding why so few businesses bid on these contracts is complex, but it comes down to a combination of ignorance of the opportunities for partnership, lack of understanding of how Aboriginal people conduct business differently and, in some cases, prejudice.
Relationships First
While working as the CEO of the Glooscap First Nation Economic Development Corporation – a group Peters cofounded – he realized that a significant part of his job was relationship building.
“Relationship building leads to partnerships. Partnerships lead to opportunities. Opportunities can lead to endless possibilities,” he says.
One of those possibilities is a better shot at winning government contracts.
“In some cases,” says Peters, “a partnership with a First Nation band or firm can greatly assist a company’s bid on government contracts because of set-asides, multipliers, and other project incentives.”
Nation2Nation offers a variety of services, but one of their key offerings is the ability to help Canadian businesses find relevant opportunities to work with First Nations communities. With his insight into ways that First Nations communities may conduct business differently, Peters and Nation2Nation are helping clients to better understand the people they want to work with, and prepare more competitive bids.
“Doing business in various Aboriginal territories in Atlantic Canada is complex, as the Mi’kmaq, Maliseet and Innu often hold rights, title, and have a very different way of doing business that may even seem incompatible with the objectives of the non-Aboriginal companies.”
According to Peters, First Nations communities place a particularly high value on building relationships before doing business. This allows the community to make a more informed decision together, as consensus and harmony in the community are given high priority.
But just because First Nations communities value consensus, it doesn’t mean everyone agrees all the time. And it doesn’t mean that all of these communities agree with one another.
Considering that across Canada there are 617 First Nations, 53 Inuit communities, and, as Peters says “many historical relationship issues with government and many, many cultural differences” it only makes sense.
Peters understands that all of this can be intimidating to someone unfamiliar with this landscape. One of the ways he’s trying to help business get past the potential intimidation is by offering Aboriginal Awareness sessions. Speaking with him he’s quick to tell you that, by now, he’s hard to offend.
“Often times for partnerships to be successful and service agreements to be signed, a period of getting to know each other is necessary to create a foundation of trust.”
During the recent federal election campaign, there was a lot of talk about developing a “nation to nation” relationship between Canada and its Aboriginal population. Building strong business relationships is a key part of that, says Peters.
In fact, in June of this year when the Truth and Reconciliation Commission released its report, one of the Calls to Action outlined the role business can play in making Canada a fairer, and safer place for its own Indigenous people.
New Growth
While there’s lots of work to be done, Atlantic Canada is already enjoying some success stories. With government funding to First Nations communities and organizations having declined over the years, Peters says many communities have become “more astute to the world of economic development, and strategic with their opportunities.”
“Mi’kmaq and Maliseet communities have utilized these opportunities to become economic generators for surrounding municipalities.
“Membertou, Millbrook, St. Mary’s, and Madawaska – with their existing and planned business projects – employ band members and non-Aboriginal people from surrounding communities.
“These dollars are spent on goods and services on both a local and regional level, building economic strength for the whole region.”
And though it’s just launching, Nation2Nation is already helping another Atlantic Canadian First Nation to launch its own economic development corporation.
Working together with St. Mary’s University’s Sobey School of Business, Nation2Nation is providing a Mi’kmaw community in Nova Scotia with a model for an economic development corporation that will respond to their community’s needs.
“The purpose of the project is to identify, through research and best practices, the most optimal corporate model to implement. This will ensure that the Mi’kmaw Nation is prepared to capitalize on identified opportunities, while allowing for the continued fostering and the creation of a dynamic and sustainable regional economy,” explains Peters.
With a new federal government in place, what does Peters think they could do to support a new era of partnership between First Nations and Canadian business?
“Presently Indigenous and Northern Affairs Canada are helping First Nation communities get the most from their economic development potential by investing in community readiness, entrepreneurs and businesses, land management, and strategic partnerships.
“In this spirit, the new federal government should be looking at increasing the amount of economic development funding that First Nations can access, so that the community can create their own wealth through own source revenues,” says Peters.
In a time when there are a lot of debates about how to build better relationships with First Nations communities, clearly some people are just getting down to business.