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Aboriginal People in Manitoba 2000 Chapter 6 : Labour and Income

Between 1981 and 1996, the number of self-employed Aboriginal people in Manitoba has grown by about 7% per year, more than twice as fast as the Canadian average. Aboriginal self-employment has also risen twice as fast as Aboriginal employment in general. It has been estimated that one in four new Aboriginal jobs created since 1981 have been the result of the rise in self-employment. About 46% of Aboriginal businesses hire additional full-time workers.¹⁵

In 1996, there were 2,355 self-employed Aboriginal people in Manitoba, or about 3% of the population aged 15+. Of these, 1,520 or 65% were Metis, and another 790 were First Nations, both on reserve (355) and off (435). Therefore, Metis are about four times as likely to be self-employed as First Nations people are. About 60% of Aboriginal-owned businesses are located in rural Manitoba. Over one third of self-employed Aboriginal people are female, a much higher proportion than in the general population.¹⁶

While the percentage of Aboriginal adults who are self-employed is still only half the Canadian average, the number of young Aboriginal people under 30 who are self-employed is rising rapidly. By 1996, the proportion of Aboriginal workers in this age group who are self-employed was higher than that for all Canadian youth.¹⁷

By industry sector, 15.5% of self-employed Aboriginal people were in retail and wholesale trade, 14.6% in fishing and trapping, 13.7% in construction, and 10.1% in agriculture. In other sectors, fewer Aboriginal people were self-employed.¹⁸

There exists an array of Aboriginal development corporations, affiliated with Tribal Councils and the Manitoba Metis Federation, that provide start-up assistance for businesses. As well, direct government assistance is available through Manitoba Industry, Trade & Tourism, and Aboriginal Business Canada (ABC), an arm of the federal Industry department. A 1996 national study of businesses assisted by ABC found that:

Based on the total assistance provided to both active and closed firms, the cost per full-time job is $28,388 …17.4% of assisted businesses achieved a significant profit [and] 19.4% achieved a small profit …Viability varies substantially among industry sectors. The strongest results were achieved in business services (67.6%), construction (63.4%), retail trade (61.0%), and transportation (57.6%)¹⁹.

However, most self-employed Aboriginal people used neither development corporations nor government assistance to finance their business start-ups. According to information compiled in the Aboriginal Peoples’ Survey, 70% of Metis and 66% of First Nations people who owned their own businesses in 1991 were self-funded, or received funding from family and friends. 30% of Metis and 24% of First Nations people went to a bank or trust company. More First Nations people than Metis were financed through an Aboriginal development company (12% vs. 5.5%) or through the federal government (5.6% vs. 3%), while Metis were more likely to receive assistance through the provincial government (7% vs. 3%).²⁰