Institutional determinants of profitable commercial forestry enterprises among First Nations in Canada

Abstract

This paper uses survey information to examine several common assertions about the institutional prerequisites for successful profitability when a First Nation enters an economic enterprise either independently or in joint effort with an outside firm. In the winter of 2004–2005, we interviewed managers on both the First Nations and private sides of joint ventures and other business alliances in Canada, to determine what affected their recent profitability experience. We gathered information on the ages, sizes, and activities of the firms. We also gathered information about the firms’ management structures and relationship with the First Nation, and the characteristics of the government of the First Nation. With a sample size of 40 firms that responded, we found that several institutional characteristics affected profit positively: strong separation of management from band governance, participation in management planning, and the use of staggered terms in band council elections. We found that the likelihood of profitability decreased if the band had been in third party management as well as if there was formal participation of elders or hereditary chiefs in decision making. We offer interpretations of these results.

Aboriginal forestry entrepreneurship: A case study in Mashteuiatsh Ilnu Nation

“…This is consistent with many scientific results (Cornell and Kalt 1991, Jorgensen and Taylor 2000, Trosper et al 2008. It certainly contrasts with "the traditional model, where Chief and Council were responsible for the everyday management of community-owned businesses" (Graham and Wilson 2004).…”

“…The interviews conducted during our study validate the hypothesis that the business-politics link can hamper a business' success (Trosper et al 2008). As one respondent who has been involved in his community's economic development for a long time explained: "There came a time where the council and the entrepreneurs felt that we didn't have the services we needed.…”

“…Since 1996, the First Nations Forestry Program 5 (FNFP) has encouraged Aboriginal communities to play an increased role in the development of forest resources (FNFP 2008). This is a major issue in all Canadian provinces, which are all home to Aboriginal communities interested in taking part in forestry (Hutton 2004, FNFP 2008, Trosper et al 2008, Wyatt 2008. Unfortunately, our research reveals a lack of information on Aboriginal business initiatives in forestry.…”

Valeurs autochtones et modèles forestiers

“…Parmi les premiers modèles mis de l'avant, la cogestion (Berkes et al 1991 ;Rodon 2003 ;stevenson 2006) a supposé qu'un partage de pouvoir permettrait aux autochtones de faire respecter leurs valeurs, alors que la gestion intégrée des ressources permettrait de mieux refléter l'utilisation multiressources des forêts pratiquée par eux. D'autres tentatives ont visé les modèles économiques (Anderson 1997 ;Beaudoin et LeBel 2011 ;Beaudoin et al 2011 ;Boyd 2006), soulevant les différents intérêts et l'hétérogénéité des valeurs qui existent à l'inté-rieur des communautés (Trosper et al 2008). Reconnaissant la dominance gouvernementale et industrielle dans la gestion du territoire, d'autres modèles prônent la documentation de l'utilisation et de l'occupation autochtone du territoire, ainsi que les processus de consultation (Wyatt et al 2010).…”

“…La foresterie est un secteur économique important au Canada, et Essipit, tout comme plusieurs autres communautés autochtones (Beaudoin et al 2009 ;Trosper et al 2008 forEstEriE communAutAirE La foresterie communautaire est un arrangement par lequel une forêt publique est gérée par une communauté pour le bénéfice de cette communauté (Teitelbaum et al 2006). on en retrouve de nombreux exemples partout dans le monde (Pagdee et al 2006 ;Roy 2006).…”