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Programs, Partnerships & Joint Ventures

Chiefs of Ontario Programs

 
Chiefs of Ontario
Economic - Business Development Support Program Report
November 1999
 
 
The Ontario Native Affairs Secretariat entered into a one year funding agreement with the Chiefs of Ontario. This undertaking was to enable the Chiefs of Ontario to hire an individual to support, advise, consult, recommend and promote economic and business development with First Nations in Ontario. The agreement is to have the Regional Chiefs office facilitate and support First Nation efforts to promote and advocate greater economic development participation and enhancement. The resources provided the opportunity for the Chiefs of Ontario to physically support and supplement the Ontario government's aboriginal economic initiatives.

The strategy of the Ontario government is to focus and support the stimulation of economy that will result in the creation of long term employment and wealth. Through such development and investment in the potential aboriginal economy, the spin-offs will not only benefit the First Nation people but eventually impact the population at large. The economic development potential of the aboriginal peoples have not been fully exploited. The present developments are only tapping the obvious sectors with the support from readily available human and financial resources. There is a critical need for strategic economic planning for Ontario’s aboriginal population. The strategic plan will have a tremendous impact in the overall economic development stimulation of the aboriginal economy.

 
First Nations Economic Outlook

There has been unprecedented economic development growth among the aboriginal peoples not only in Canada but in Ontario as well. The economic opportunities among the First Nations are no longer restricted to the confines of the First Nations reserve boundaries. The understanding and support by private and public sector to promote joint venture partnership approach is one of the key elements promoting and stimulating aboriginal and non-aboriginal economy alike.

The First Nations leadership has continued to advance the removal of a number of barriers that has continued to stifle aboriginal economic growth. The political territorial organizations and independent First Nations have supported their local or district economic initiatives. These initiatives are specific to the local demands and markets At this time, there is very little cross territorial business development and support among the First Nations.

 
First Nation Governments and Economic/business Development

At the community level, there are instances that political initiatives are too closely intertwined with economic development opportunities. Business opportunities that are developed by political motivation have a higher risk of failure within a given time frame or will be sustained to continued financial support by First Nation. This is more prevalent within First Nations societies because of the short two-year tenure of the elected leadership.

It is definite that discussion and planning must be initiated to ensure that aboriginal economic and business development have their recognized system and should be supported by aboriginal political leadership. There needs to be a clear separation of economic development process and that of political roles and functions. This understanding will result towards promoting greater aboriginal economic development growth and enhance aboriginal entrepreneurs to assume greater responsibility for the economic planning and development.

 
Aboriginal Entrepreneurs Concerns

frustration among the aboriginal entrepreneurs due to the lack of patronage by First There is a high level of Nations communities.Nations governments and people are more comfortable to support and it appears that First patronize non-aboriginal businesses rather their own people's efforts.

It is essential that this should be examined to determine why this trend has not changed. First Nations have always supported non-aboriginal businesses to the point that we are recognized as “the consumers”. The examination may determine if the aboriginal businesses may not be competitive in services and prices. Could it be that local aboriginal businesses are taking for granted their community market, and the presumed captive market no longer really exists? Could it be that local entrepreneurs are lacking essential marketing and advertising expertise? Or could it be related to entrenched community cultural past?

There is definite need for community-based seminars focussing on educating aboriginal citizens on the importance of business and economic development. The seminars should focus on the corporate and social responsibility of business entrepreneurs as well.

 
Economic Barriers

It is important that First Nations leadership continue to promote the dismantling of the existing barriers that continue to hinder aboriginal economic growth. It is as important that private and public sector are mindful of these barriers because they could be part of the solution. As long as these barriers remain, the full potential growth of aboriginal economy will not be fully realized.

1. Equity and Debt Capital

The National Aboriginal Financing Task Force (NAFTF) made twenty-one recommendations to improve access to capital for aboriginal community and business development. The NAFTF recommended specific changes to policy, operational and regulatory regimes presently applied by government, financial sector and the aboriginal people. The immediate task is to create greater equity and capital base. The access to such resources will create a more level playing field for economic development for First Nations. The benefits from economic development are not solely to the aboriginal community; but in all cases, employment and wealth creation spills over to the neighbouring municipalities and towns.

2. Business and Market Development

Most aboriginal businesses are content to serve their own community. Thus, their market is stable as long as there is no other competition, and in all likelihood the sales remain at certain level. Growth is nominal if any at all. It is not difficult to assume that the life expectancy of such business will be long term and neither will it be flourishing during its existence. Aboriginal people have a difficulty of promoting themselves or their skills. They are more comfortable to have their skill recognized from their efforts. The difficulty to promote oneself is culturally inherent with many aboriginal societies. To the Ojibway, Oji-Cree and Cree, the promoting of oneself borderlines "boasting" or insinuating you are better than the next person; therefore implying "looking-down" on your neighbour.

In order to create long-term jobs, increase wealth and to sustain businesses aboriginal entrepreneurs must have the capacity to market and advertise their businesses. These businesses must not only be encouraged to expand locally, but the business must plan for regional and international clientele and markets. The aboriginal entrepreneurs must be encouraged to learn and experience what the world needs in order for them to respond to such needs.

Secondly, the aboriginal entrepreneurs must have access resources to design unique marketing strategies that will reflect appropriately at community level and also that will impact regional and international promotions. The culture and uniqueness of aboriginal peoples must be marketed to meet the world community interest. Aboriginal entrepreneurs presenting marketing seminars highlighting re-designed marketing techniques that incorporate cultural uniqueness and flavour will support the stimulating of the local aboriginal economy.

3. Work Force Training/Experience

By upgrading their skills and work experience, aboriginal people will be able to compete more successfully in the increasing knowledge-based labour markets in Canada. The present trends in the management of training programs are linked to government initiatives. At times, these initiatives lack to respond to employment opportunities and associate training needs that have resulted from aboriginal economic initiatives. For example, aboriginal cultural presentation is a major attraction for European countries and others. As aboriginals, this fascination for granted as a cultural program activity, and this is basically how Canada views it. The aboriginal presenters grew up with these presentations but when inquired by the audience of the meaning of the performance, they recoil and are very hesitant to explain. Our dancers and other performers should be trained in public relations. The presenters are a key element to promoting aboriginal businesses in the international business community. There are various initiatives that training resources must be designed to specifically focus on.

4. Lands and Resources

Lands and resources form the lands are the base for economic growth of First Nations. Present conflicting land polices with the Ontario government must be addressed. Without dialogue and agreements between governments, and First Nations, the rich resource based lands will inevitably be tied down to long, protracted legal wrangling. The First Nations will continue to press for the treaty recognition of access to raw natural resources. These resources are vital for the First Nations in northern Ontario and First Nation in Southern Ontario and they will pursue all avenues to have access to what is within their territories.

It will be critical that planning be in p]ace that will address the orderly extraction of natural resources including conservation measures and practices by aboriginal people. At the same time Ontario government must move forward proactively as this will stimulate economy. Lack of action will create frustration, de-stabilize existing partnerships and lead to eventual confrontation.

5. Innovation

Unfortunately, our aboriginal entrepreneurs are lagging in the innovations sectors of businesses development and utilization. Many of our small businesses are still coping outside of the technological supports. In order for aboriginal businesses to compete in a level playing field, they must have the capacity to relate to technology and apply to such innovative products that become available. There will need to be investment in training for the aboriginal business people, and resources must be identified for the purchase of equipment.

The aforementioned issues must be addressed by the First Nations leadership along with private and public sector counterparts. The principle task is to eliminate the many barriers that may create hindrances to continued aboriginal economic growth.

 
Ontario First Nations Economic Development Thrusts

The main task for the Chiefs of Ontario economic development program was to begin identifying areas where linkages and supports are required to support and enhance the economic development aspirations of the aboriginal peoples. The Chiefs of Ontario is not mandated to be involved in the specific delivery of programs but to be a supplementary support to existing efforts. The program delivery rests with ground level support groups such as First Nations, Tribal/First Nation Councils, political territorial organizations or in some cases capital venture corporations such as NAN Development Fund. Thus, Regional Chief's economic development thrust is focussed on the identification of potential regional of district wide economic development issues.

Therefore the following initiatives were pursued:

1. First Nation Entrepreneurs Networking Forum

A number of First Nation entrepreneurs conducted a one-day forum facilitated by the Chiefs of Ontario in Thunder Bay. The purpose of the forum was to begin setting up the Northwestern Ontario Business Network. The essence of the forum was to begin discussing an aboriginal parallel to the chamber of commerce institution. Most first Nation businesses operate individually and struggle feeling isolated without a network for support or mentoring. The First Nations business people came from northern Superior region, Thunder Bay, Fort Frances, Kenora, Sioux Lookout and north. The participants paid for all their own expenses.

The First Nations Business Network forum undertook the following:

  • The entrepreneurs had the opportunity to discuss and identify common business concerns.
  • The group discussed options on potential structure and processes to advocate on their behalf. Chamber of Commerce structures which are effective within municipalities are not suitable nor appropriate for the desired functions of entrepreneurs scattered throughout vast distances in northwestern Ontario. The group began exploring the type of representative mechanism that would meet their needs.
  • The participants wanted an opportunity to expand their markets with other First Nation businesses.
  • The group wanted to create a network for advancing aboriginal business interests and dialogue.

The next gathering of aboriginal entrepreneurs will be in Sudbury. The function of the gathering will be similar to the Thunder Bay forum. The Sudbury forum will not only identify aboriginal business concerns, but an additional day will be encouraged for the actual planning and development of district network. This will be the groundwork that will lead to the regional Ontario wide aboriginal Chamber of Commerce.

2. First Nations Business Data Base

The First Nations economic development opportunities are constantly increasing in various sectors. No longer are aboriginal aspirants intimidated by any opportunity. If there is a business opportunity that aboriginals are not participating, today we could be rest assured that there is an individual planning to entered the field shortly. There are numerous businesses throughout the Ontario aboriginal communities, but there is no recognized linkages between the initiatives. Even the political territorial organizations do not have the accurate number and types of businesses that are operating within their areas. The tribal and First Nation councils have a better data of businesses operating within their communities. The aboriginal businesses operating within urban centres are not clearly identified with any aboriginal organization or agencies.

There is a need to have a central database of businesses identifying the nature, location specialty or uniqueness. The database should provide telephone/fax number, addresses and e-mail. The entrepreneurs will be asked what other pertinent information may be distributed through the database. The continual updating of the database supported by a web site will advertise new initiatives and locations.

3. Rama Casino Funds

The protracted delays in reaching an agreement to the distribution of the Rama Casino funds have created frustrations among the First Nations. Many First Nations have targeted these resources for specific economic development projects. These funds would have provided the much needed equity for many initiatives. At the same time, First Nations had projected expenditures to supplement existing projects that fall within the identified categories for these funds.

During the conference convened December 1998, at which time, the Chiefs in Ontario were tasked with the goal of designing the formula for the distribution of the Rama Casino profits, and a number of First Nations had discussed the concept of pooling these resources for investment purposes. CESO provided the expertise to the Chiefs of Ontario office with alternatives and how such investments would perform. A number of First Nations examined the concept of pooling such resources and the projections on the return from investments.

Subsequently, another meeting was convened by First Nations who had settlement dollars thatn were in trust and invested by investment firms. The meeting revealed that the large majority of First Nations that had engaged investment firms to manage their funds showed that the rate of return from investment was unsatisfactory. Although most of these firms were managing the funds in a low risk and safe portfolios, the First Nations were committed to finding new approaches to investment options.

There will be a follow-up with the First Nations that have reached settlement in Ontario from land claims or from hydro grievances. Dialogue is required for these parties to continue discuss forums on how to have these resources invested for greater returns. This process will need to be encouraged and supported because many First Nations will want to invest subsequent years allocations from the Rama Casino funds.

4. First Nations Trade Mission

During the spring of 1999, the Chiefs of Ontario participated with the Assembly of First Nations trade mission to Mexico. The prime purpose of the trade mission was provide the opportunity for Canada's first Nations entrepreneurs to explore and begin dialogue with potential business interests in Mexico for trade purposes. Secondly, the political component accompanied the trade mission for the purpose of supporting the aboriginal businesses and to create alliances with the aboriginal peoples in Mexico. Mexico has an aboriginal population in excess of ten million people. The political contingent met with various Mexican government sector responsible for aboriginal issues. A standing invitation was given to the National Chief for a return visit.

The trade mission provided an opportunity for First Nations to see the complexities involved in establishing trade with other countries. Aside from the government requirements that could be accommodated, the trade mission revealed that First Nations have ready clientele in Mexico. In return the first peoples of Mexico have products that they need to market

Presently, we are working on a joint trade mission between the Chiefs of Ontario, Assembly of Manitoba Chiefs and the Federation of Saskatchewan Indian Nations to visit Trinidad & Tobago. There are three components to the trade mission. First and foremost is the promoting of aboriginal businesses. The trade mission will be seeking and promoting trade and investment opportunities for the aboriginal businesses in Ontario. Secondly, a cultural component will provide cultural exchange presentations. Aboriginal peoples in Canada have been misrepresented and are misunderstood because of how they have been depicted through western movies. The trade mission will provide an opportunity to educate the host country about Canada's about peoples. Thirdly, a political unit will accompany the trade mission. The political unit will support the aboriginal trade mission presentations and provide political support to aboriginal entrepreneurs in their potential opportunities. The political leadership will become sensitised of the intricacies involved with international trade.

5. Dialogue With Ontario Municipalities

Aboriginal economic development cannot be sustained merely by concentrating on the aboriginal communities and aboriginal market. Aboriginal entrepreneurs must examine the local market conditions and opportunities. Many times, aboriginal people miss opportunities because they have discounted the neighbouring communities. Past historical relations have not been pleasant, and these relations are too entrenched with the present generation. The aboriginal entrepreneurs view these next-door neighbors as potential markets and have the willingness and resolve to establish relationships.

The resource developers must be proactive to establish long term relationship with the First Nations whose traditional territories will be impacted by resource extraction and development consistent with the recent Supreme Court rulings. The potential for developing natural resources will also impact directly the municipalities adjacent to the First Nations territory. Unfortunately, most municipalities do not understand the need for developing meaningful relationships with the surrounding First Nations communities. The municipalities are starting to awaken to the reality that First Nations will have to be key components within any future developments. Therefore, it is critical that dialogue commence between the two communities. The municipalities need First Nations two support potential resources development, and First Nations require the local markets and support from the people.

During the course of the year, the economic development advisor has had a series of meetings with a number of municipal leaders to begin such dialogue. The municipal leaders are very open to pursue avenues for creating understandings and processes for joint efforts on a wide spectrum of issues. As an example, the members of the Association of Mining Municipalities passed a resolution calling on the government to expedite the settling of land claims in Ontario. This is a clear message that these leaders want a co-operative approach to resources. During the coming year, the Chiefs of Ontario will be meeting with municipality interests on how this approach could be expanded, and how both parties (First Nations and Municipalities) can establish relations.

6. Consultation

One of the key elements to promoting economic planning and development is through meetings with various creations and groups. Rather than structuring the consultation by making presentations at organizational meetings, the economic development advisor has met with various aboriginal entrepreneurs and key leaders who have been strong advocates for economic development at First Nation community level.

Aboriginal Entrepreneurs

The relationship gap between aboriginal entrepreneurs and community leadership is widening.Many entrepreneurs are losing confidence in the existing governance processes as it relates to them. They feel isolated and at times feel ostracized by the community. They attribute this to the fact that the people do not understand how and why the entrepreneurs have this particular opportunity to prosper. The regain concern of the entrepreneurs is the negative influences of community politics. The other concerns are previously stated regarding the perception of non-support, which in many cases might be fact, but in other cases, it is directly related to competitive issues. The aboriginal business community feel that the community leadership should not be involved in the actual business development and that the responsibility should be in the hands of entrepreneurs.

Community Leadership

The First Nations leadership believes and supports the intent of economic development. There is an emerging understanding that self-sufficiency will only happen through creation of wealth and long term stable employment for the people. Therefore, they feel compelled as past of their mandate and responsibility to pursue and establish economic ventures.

A number of First Nations have initiated major thrusts in urban centres that have shown promise and in some cases have succeeded. Once there is a change in the leadership, these projects begin to decline and at times they eventually cease to operate. The leadership is primarily concerned about the potential opportunities and are less open to provide supplementary support to existing businesses as there are built in supports for such businesses such as after-care program that are available through Aboriginal Business Canada.

7. Conference on Hydro Power Development

The Chiefs of Ontario will be supporting and promoting the forthcoming conference on hydro power development that will be convened in Thunder Bay. This conference will be hosted jointly by First Nations communities. The conference will focus on the actual business opportunities from the deregulation of Ontario Hydro. The invitations will be targeted on the aboriginal business community. One of the key conference objectives is to identify and promote key planning groups to spearhead the hydro power generation in the north. The intent of this conference is to design a business approach towards developments and how the various hydro initiatives should be linked.

Chiefs of Ontario will assist with the planning and facilitating of the conference.

8. Comprehensive Economic Development Strategy

Ontario First Nations require a comprehensive economic development strategy. The present approaches throughout Ontario are not linked to an over-all plan. Each responsibility centre whether they be Tribal/First Nations Council political territorial organization, capital venture corporations and First Nations are operating within the confines of their regions or communities. Further to this, there are initiatives sponsored by both federal and provincial governments. Then there are the initiatives sponsored and supported by the private sector. The role and function of various institutions such as the Economic Renewal Secretariat, the proposed aboriginal Chamber of Commerce, will need to be clearly established so that the resources are maximized.

The programs sponsored by governments such as Economic Development Officers will need to be assessed as to how these individuals could be supported or re-deployed according to a planned approach. The Partnership Development Advisors role and functions should be linked with the over-all efforts The designing of the Comprehensive Economic Development Strategy will have major ramifications on the deployment of existing financial and human resources. The strategy will design more effective approaches to development, recommend pooling and sharing of resources, support and strengthen local and district initiatives. The comprehensive plan will examine and recommend all pertinent economic development issues.

The Comprehensive Economic Development Strategy is a three-year initiative from design stage to the actual implementation. The Regional Chief has presented the proposal for the three-year funding to the Minister of Indian Affairs and Northern Development. The Chiefs of Ontario will be debating the Comprehensive Economic Development Strategy at the Special Chiefs meeting which is to be held during the second week in December. Such debate will be the first phase of elevating the economic development agenda among the First Nations in Ontario. The Chiefs of Ontario will be forwarding the Comprehensive Economic Development Strategy for the Ontario government support.

The Chiefs of Ontario will be submitting the proposed Comprehensive Aboriginal Economic Development Strategy for a three year funding commitment from Ontario. The Ontario Native Affairs Secretariat funding for economic development will he used to support the designing of the Comprehensive Economic Development Strategy. The work that has been identified from the first years operation veal] need to be continued. Majority of the work and development will be entailed within the proposed economic development strategy. Special emphasis will need to be made in the continuing dialogue with municipalities, planning international trade missions and establishing aboriginal Chambers of Commerce.

The Chiefs of Ontario will have a vital function facilitating dialogue between various interests during the designing of the strategy. There will be a need for continual monitoring and follow-up to ensure understanding on the approaches. Governments will need to participate as partners in the planning process. The strategic plan, once implemented should resulted in greater stimulation of the economy resulting in creation of employment and wealth for all citizens.


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