A First Nations business or supplier is commonly at least 50% or more owned by a First Nations person/s. The First Nations business owner receives equal or more benefit from the arrangement, depending on their percentage share above 50%.
Joint ventures (JV) are also legitimate, subject to being 50% First Nations owned and controlled.
Sometimes, non-Indigenous businesses or individuals falsely claim to be a First Nations business or individual for the purpose of gaining access to First Nations procurement policies or contracts. In Australia this practice of misrepresentation is known as ‘black cladding’ and is essentially a form of fraud.
Proponents and developers should ensure that local and regional communities benefit from their presence. Partnering with local and First Nations suppliers directly supports First Nations businesses and boosts local economies.
Proponents should look to add local First Nations businesses to their supply chain. This can be done by making it easier for local suppliers to compete for contracts – such as offering adjusted payment terms for First Nations small businesses, ensuring upcoming work opportunities are promoted carefully to enable First Nations suppliers to register interest, and by providing a dedicated team to support local suppliers through the procurement process through supported capacity building programs.
Working to strengthen the capability of local industry means First Nations businesses can be more competitive in the procurement process, which will in turn maximise local economic benefits.