Complexities in developing Australian Aboriginal enterprises based on natural resources

Abstract

Across the world’s rangelands, livelihoods of millions of people are dependent on customary and commercial use of wildlife. Many Australian Aboriginal communities also aspire towards developing natural resource-based enterprises but there is a unique combination of historical, legislative and cultural factors that make this process complex. Typically, government support for Indigenous enterprise development has focussed largely on development of ‘social enterprise’, with subsidies coming from various government community development programs. This has resulted in some increase in participation and employment, but often inadequate attention to economic aspects of enterprise development leading to low levels of business success. This paper will examine historical, legislative and institutional dimensions in business development in Aboriginal communities. It does this through a case study of business enterprise development of the Kakadu Plum products by the Indigenous people of the Thamarrurr Region of the Northern Territory, Australia, using a participant observation research method. We found that attention on important economic criteria was subsumed by a focus on social enterprise priorities during the development of this natural resource-based enterprise. This resulted in a very slow transition of the ‘social enterprise’ to the ‘financial enterprise’, due largely to fragmented business decisions and inefficient value chains. We call for a refocus of natural resource-based enterprise development programs in remote Australian Aboriginal townships to incorporate greater emphasis on business acumen within the complex social, cultural and political fabric.

Indigenous Social Enterprises and Health and Wellbeing: A Scoping Review and Conceptual Framework

“…Often these types of enterprises were traditionally not-for-profits but have become social enterprises to compensate for a decrease in government funding. Their reliance on government funding has also contributed to the view that Indigenous social enterprises are unsustainable or unbusinesslike [ 21 ]. This model is also used as an example of how neo-liberal policies have negatively impacted the not-for-profit sector [ 28 , 29 ].…”

“…The blending of Western and Indigenous knowledge is reflected in the mission of several social enterprises, which emphasize the importance of cross-cultural learning and doing things ‘two ways’ [ 52 ]. The notion of a ‘hybrid economy’ is particularly visible in remote parts of Australia, where many Indigenous people are engaged in activities like wildlife harvesting as a form of social enterprise [ 21 , 75 ]. Although, the extent to which these wildlife enterprises apply conventional business practices varies, they are a form of social enterprise in the traditional sense, as their principal concern is providing a social good by meeting the needs of the community [ 75 ].…”

“…Although social enterprise is a relatively ‘new concept’, some argue it is an ‘old idea’ and that Indigenous ways of doing business are an original form of social enterprise [ 19 , 20 ]. Traditionally Indigenous people worked collectively and traded goods for a social purpose/community benefit [ 21 ]. In contrast, it is only recently that the limitations of the Western capitalist business model have been more widely recognised and alternatives, like the social enterprise model pursued [ 22 ].…”

Old Ways, New Ways—Scaling Up from Customary Use of Plant Products to Commercial Harvest Taking a Multifunctional, Landscape Approach

“…It now engages PWAC and the local Aboriginal development corporation, Thamarrurr Development Corporation, to assist in supporting operational activities. Annually, this community enterprise has purchased tons of wild harvested fruit from the community members who wild harvested it from their traditional estates [87]. This enterprise provides significant monetary and non-monetary benefits for the community.…”

“…These enterprises often lack the business acumen required to make decisions that lead to viable long-term businesses in this distinctive landscape context [48]. This confusion between social and economic objectives has been cited as an important contributor to business failure in Aboriginal businesses [87,118]. There are, however, many examples of Aboriginal community-based enterprises (such as those described in Section 3.3 above) which have managed social, cultural and economic priorities successfully.…”