New report offers solutions, recommendations to grow Indigenous economy in Canada

Targeted Indigenous financing programs, which allow lenders to rethink traditional loan criteria, are key to economic reconciliation, according to a new study by the Ontario Chamber of Commerce, released in partnership with the Canadian Council for Indigenous Business.  

“Access to capital continues to be one of the most critical barriers Indigenous businesses face today,” said Tabatha Bull, council president and CEO.

She said the report, which focuses on six key recommendations, challenges financial institutions to make long-term, culturally informed commitments to Indigenous communities that move beyond “incremental change.”

It’s the second installment of the Chamber’s The Way Forward series and focuses on the National Truth and Reconciliation Commission’s 92nd Call to Action, which asks Canada’s corporate sector to adopt the United Nations Declaration on the Rights of Indigenous Peoples as a reconciliation framework. 

The value of the Indigenous economy in Canada has more than doubled in recent years. Estimated at $24 billion in 2011, it hit $50 billion in 2020. 

Despite that growth, the report found Indigenous entrepreneurs continue to face significant financing barriers, partly due to the constraints of the Indian Act, but also unrealistic lending policies, and a lack of culturally appropriate services.

Training, mentorship and resources

“Economic reconciliation is not only a moral imperative but also an economic opportunity,” said Daniel Tisch, chamber president and CEO.

He said the report offers “tangible recommendations to help financial institutions and businesses invest more effectively in the Indigenous economy, enabling Indigenous entrepreneurs, businesses and communities to build long-term wealth.”

Those recommendations include providing financial literacy resources, training, and mentorship to support capacity-building within Indigenous businesses and tools and financial models that work with Indigenous knowledge systems.

The report’s authors also recommended expanding Indigenous Loan Guarantee programs, partnering with Indigenous financial institutions, and supporting long-term self-determination through Indigenous trusts, equity investments, and revenue-generating governance models.

Colonial policies, a lack of on-reserve banks and systemic racism have historically excluded many Indigenous people from the financial system. 

According to Prosper Canada, about 15 per cent of Indigenous people didn’t have a bank account in 2015.

“We have been stewards of the land since time immemorial. Now, we must learn to become stewards of capital,” said Fred Di Blasio, CEO and managing partner of Longhouse Capital Partners.

The best way to do that is to get First Nations directly involved in finance, he said.

“When I teach portfolio theory, I use a simple analogy: when you go hunting, you have three caches. It’s the same principle—diversifying to manage risk and ensuring you’re not putting all your eggs in one basket,” Di Blasio said.

“Finance isn’t inherently complicated; it’s the jargon that makes it feel inaccessible. Our goal is to cut through that noise and keep it simple.”