Connections are key for Indigenous female entrepreneur success

Inuujaq Leslie Fredlund, a client of Kivalliq Business Development Centre and participant in the NACCA’s Indigenous Women’s Role Model Campaign, stands beside her boutique store, Maybe Somewhere, based in Rankin Inlet, Nunavut. The mobile store features an array of Inuit, Nunavummiut and Indigenous products from jewelry and apparel to cosmetics, skincare and music. (Photograph by Fred Cattroll)

For many Indigenous women, entrepreneurship offers a path towards fulfillment, personal freedom and financial independence. 

As innate leaders, and regarded as such in their communities, Indigenous women are sources of inspiration and pride for next generations. This influence is key for healing from the painful history and finding a new way forward, something the entire country will reflect upon during the first National Day for Truth and Reconciliation being observed on September 30.

When starting their own business, Indigenous women encounter unique challenges and successes. CPA Canada spoke with CPA Relay Tangie and Magnolia Perron from the National Aboriginal Capital Corporations Association (NACCA) to learn more about this experience. 

A network of over 50 Aboriginal Financial Institutions (AFIs), NACCA’s mandate is to help stimulate economic growth for all Indigenous People in Canada. With their comprehensive financial capabilities training, NACCA supports Indigenous female entrepreneurship, an important part of the journey towards economic reconciliation.

Here, Tangie, an African-Canadian of Cameroonian decent, and Perron, who is from Tyendinaga Mohawk Territory and a proud member of the Mohawks of the Bay of Quinte, share how Indigenous women’s entrepreneurial skills give them a head start and how NACCA’s tailored training programs create a strong framework for success.   

CPA CANADA: Indigenous women play an important role in their communities. How does this help to prepare them for entrepreneurship?
Magnolia Perron (MP): Indigenous women have always been at the centre of the family and participated in the development of our communities. 

Leadership and entrepreneurial traits are innate in Indigenous women. If you look at the advocacy work happening in our communities, it’s often Indigenous women who are literally putting their bodies on the frontline. 

Indigenous entrepreneurs, especially women, often encompass cultural values into their business based on the needs of their community, whether that’s supporting work in progress or creating jobs. 

Their businesses often have an emphasis on sustainability and the seven generations. 

CPA CANADA: What are some common experiences Indigenous female entrepreneurs have shared with you?
MP: One of the top challenges for Indigenous female entrepreneurs is accessing capital and that has a lot to do with the eligibility criteria.

Many indigenous women don’t want to take on more debt, so the financial support they’re looking for is in the form of grants or non-repayable contributions. 

When they try to access financing through mainstream financial institutions, they require collateral. Section 89 of the Indian Act prevents banks from using property located on a reserve as collateral, which can be a barrier for Indigenous women trying to access capital. In addition, a credit rating can hinder this as well, as some Indigenous communities do not have access to financial institutions. 

We’ve also heard that accessing financing requires [the women to] be involved in their business full time. Many entrepreneurs start with home-based or part-time businesses, which also hinders eligibility. 

Another shared experience is trying to balance business and family responsibilities. Indigenous women tend to be burdened with more family and community responsibilities. When accessing entrepreneurial programs including workshops and training, logistics such as childcare and transportation can be difficult.

Despite these hurdles, Indigenous women often start businesses with their own personal savings and research shows that the number of self-employed Indigenous women are growing at a faster rate than the number of self-employed Indigenous men.

Although less Indigenous women are self-employed than men, their growth rate between 2011 and 2016 was 46 per cent. This is higher than that of Indigenous self-employed men which was only 37 per cent.

Tangie (left) serves as finance manager for NACCA and Perron is NACCA’s Indigenous Women and Youth Program Officer (Credit Relay: Fred Cattroll, Credit Magnolia: Laura Dimitroff)

CPA CANADA: You’ll be discussing the recent NACCA survey on female Indigenous entrepreneurship at the Mastering Money virtual conference. What insights can you share with us?
MP: Out of the Indigenous Women Entrepreneurs in Canada survey, the number one reason Indigenous women want to get into business is to pursue a passion for a product or service; the second is for greater flexibility and freedom; and the third is to generate income for their families. 

It’s important that we provide targeted support to women including trainings related to running, starting and maintaining a business, accessing financing and budgeting. These trainings should make provisions for things like childcare and transportation and create safe environments for Indigenous women to share.

Programming also needs to reflect indigenous women’s culture and circumstances in Canada, and capture that diversity among Indigenous People whether you’re a First Nations woman living on reserve or a Métis women living in an urban area. 

CPA CANADA: What financial literacy and business acumen skills are developed through the NACCA’s financial capability training?
Relay Tangie (RT): We know that financial literacy is a key component to business acumen. Entrepreneurs need to be attuned to how well they’re doing financially to make any sound business decisions, knowing and understanding the consequence of each financial decision.

One skill gap noticed from our research is the practical skills such as how to do a business plan and cash flow management, profit versus cash and our tax systems, both provincial and federal. 

Confidence is also a key factor. Having the knowledge that they can do it because they’ve seen it. It’s part of who they were, and it’s part of who Indigenous women are. One thing that boosts confidence is role modeling, and part of that is mentoring. You always need a mentor, no matter how successful you are. 

CPA CANADA: You developed a series of financial capability workbooks for prospective entrepreneurs. How do they help to set Indigenous women on a path to financial and business success?
RT: We did a lot of research prior to developing the training material. We noticed the financial literacy material for entrepreneurs was a bit advanced for those who are just starting off. 

The intent behind the workbooks is to act as a stepping-stone for new entrepreneurs to understand the importance of building a strong, personal financial character for business success.

From a theoretical standpoint, the workbooks cover three main areas: goal setting, mindset and savings; income, expenses and budgets; banking and credit. 

From a practical standpoint, these workshops take place within an AFI setting, facilitating that relationship with a financial institution in the early stages. It provides an opportunity for women to expand their network in a safe space because we all know that you cannot do business alone.

Lastly, the workbooks are tailored to address the needs of our diverse Indigenous communities from coast to coast to coast. That relevance and context is very important in terms of how the material is received and perceived.

CPA CANADA: How do these women impact their communities and the next generation of Indigenous entrepreneurs? 
RT: Role modeling provides visual proof that your aspirations are attainable. 

Having this representation in business encourages other Indigenous women [to see] that there is no limit to what they can do and, even with existing limitations, they can learn how to navigate the system to succeed.

This support trickles down to their communities. As more Indigenous women partake in business, we see employment go up, which leads to less reliance on social assistance. Culturally, it comes back to the seven-generation mindset; when you share your skills and knowledge you ensure those good traditions are passed along.

CPA CANADA: This year marks the first National Day for Truth and Reconciliation. What role does entrepreneurship play on the path towards healing for Indigenous Peoples?
MP: Entrepreneurship has always existed in Indigenous communities and can be a source of pride and healing. It provides an opportunity for Indigenous People to participate in their communities. In addition, it enables those who didn’t grow up in an Indigenous community or close to their culture to learn and reconnect in safe way. Language can be a powerful way Indigenous entrepreneurs incorporate Indigenous values and ways of knowing into their businesses. 

Entrepreneurship also plays a key role in restoring respect in the way Indigenous People are viewed and perceived. There is a big education piece for Canadians who want to learn about Indigenous culture and Indigenous contributions to the economy. It’s in business where we see this happening, where we’re sharing our stories and our history. It represents a big learning opportunity.

FURTHER INSIGHT

Sign up to see NACCA’s Relay Tangie and Magnolia Perron lead a session on the experience of Indigenous women entrepreneurs at the Mastering Money virtual conference on November 3 and 4.

If you’re looking for insight into the perspectives of the next generation of Indigenous CPAs, check out CPA Canada’s Introduction to Indigenous Peoples’ cultures course. Plus, read about the CPA fighting for Indigenous housing, and learn about the Indigenous wineries that are thriving.