Partnering for equitable development

When speaking about big projects, the narrative often revolves around big players—the large contractors with extensive resources. Yet, amidst the giants, smaller local and Indigenous businesses frequently find themselves facing challenges to meaningful participation. From project size to competitive processes and resource limitations, the barriers can seem insurmountable. However, the tide is turning, and project proponents can level the playing field, ushering in an era of inclusivity and empowerment.

Here are a few strategies to support and uplift local and Indigenous businesses, enabling them to not just participate but thrive in major projects:

1. Small Business Loans: Establishing a structure for small business loans can be a game-changer. These loans would provide much-needed financial support to local entrepreneurs, whether it’s for launching a new venture or expanding an existing one. By offering low-interest or non-recourse loans, project proponents can mitigate the financial barriers that often deter small businesses from engaging in major projects.

2. Contract Guarantees: Setting procurement expectations of larger contractors through contracting agreements and language is another avenue for driving inclusivity. By mandating conditions that prioritize Indigenous and local businesses, such as mandatory set-asides or pre-qualification requirements, project proponents can ensure a fair and equitable selection process.

3. Equity Arrangements: Equity partnerships offer a mutually beneficial path towards collaboration. By establishing ownership models that involve Indigenous and local communities in project delivery, such as fixed pay or revenue sharing, minority partner (1-49% ownership by community), or majority partner (51%+ ownership by community), stakeholders can foster a sense of ownership and shared responsibility.

4. Capacity Funding Frameworks: Financial support at the early stages of contract and procurement planning relieves the burden of an administratively heavy bidding process. Project proponents can cover expenses related to business meetings, legal fees, and document review, easing the burden on smaller businesses and enabling them to fully participate in the often-strenuous contracting and procurement process.

5. Joint Ventures: Collaboration between small and medium-to-large businesses is key to building capacity and fostering mentorship. Joint ventures provide an avenue for sharing expertise and resources, paving the way for inclusive project delivery and workforce development.

Empowering local and Indigenous businesses isn’t just about meeting diversity quotas—it’s about fostering a more resilient and inclusive economy. By implementing these ideas, project proponents can harness the untapped potential of smaller enterprises, driving innovation, and positive social impact.