In the world of business, we often talk about return on investment. But what if we told you there’s a sector generating nearly four times more social value than its financial output? Welcome to the extraordinary multiplier effect of Indigenous businesses in Australia.
Supply Nation today releases new research and data on Indigenous businesses and their contribution to Closing the Gap targets. The Sleeping Giant Rises report confirms that Indigenous-owned businesses are generating significant economic and social value to the Australian economy.
The pioneering research has discovered that Indigenous businesses create $42.6 billion of social value each year for Indigenous business owners, their households and Indigenous employees. For every dollar of revenue generated by Indigenous businesses, $3.66 of economic and social value is created for Indigenous communities—a multiplier effect that demonstrates the extraordinary impact these enterprises have beyond their immediate financial footprint.
The community bond
What makes this multiplier possible isn’t just smart business practices—it’s a fundamentally different relationship between enterprise and community. As one Indigenous business owner put it: “I could afford to drive a Porsche. But where I’m from, in my Community, I don’t get to drive a Porsche until everyone can drive a Porsche.”
This philosophy transforms how success is measured and shared. It’s not about individual accumulation; it’s about collective elevation.
Supply Nation’s Chief Executive Officer and proud Awabakal woman Kate Russell said Indigenous businesses create this social value purely by operating as a business, it excludes any funding support or other philanthropic programs that might be out there.
“We know that Indigenous businesses often give back, through formal or informal processes but there should not be the expectation or assumption that Indigenous businesses are all philanthropic. It is important to demonstrate that even without social or community elements, these businesses are creating economic and social value purely by being in business and that’s a great thing.”
The scope of this impact is staggering. An estimated 16% of the Indigenous population are directly connected to the Indigenous business sector, including 29,200 Indigenous business owners, over 61,300 people living in the households of these business owners, and more than 65,700 Indigenous employees working within these businesses.
The value creation
The $42.6 billion in annual social value doesn’t appear out of thin air. It emerges from very specific ways Indigenous businesses operate, creating what the research calls “social value” – positive changes seen through an Indigenous lens of wellbeing that includes improved agency and control over life, expanded aspirations, financial security, pride, physical health and mental wellbeing and stronger connections to Community, Culture and Country.
When Indigenous businesses employ people, 84% of those employees become more positive about their futures. That’s billions in value created through hope, career pathways, and the belief that meaningful work is possible. Indigenous businesses are twice as likely to hire Indigenous employees compared to mainstream businesses because they create workplaces where people can bring their whole selves—their culture, values, and identity—without compromise.
The research reveals profound personal and cultural impacts. Outcomes related to owning a business show that 95% of respondents feel proud of who they are, 89% said they are more able to express their Culture with 86% stating that young people in their family have more pride in their Culture.
The future we’re building
“The Sleeping Giant Rises report clearly shows the significant impact Aboriginal and Torres Strait Islander businesses are having. These entrepreneurs are creating social and economic value that is changing Indigenous and non-Indigenous Australia,” said Ms Russell.
What we’re witnessing isn’t just successful business—it’s a fundamental reimagining of what business can be. When community bonds are this strong, when cultural identity is this integrated into economic activity, when success is measured by collective well-being rather than individual accumulation, the multiplier effect becomes inevitable.
“I am immensely proud of this research and what Supply Nation verified businesses and member organisations are achieving together. This NAIDOC Week, we need to focus on strength, vision and legacy and this report allows us to celebrate the strength of Indigenous businesses, the vision they hold and the legacy they are leaving for future generations,” said Ms Russell.
Indigenous businesses are proving that you don’t have to choose between profitability and purpose, between individual success and community well-being, between economic growth and cultural preservation. In fact, they’re showing us that integrating these elements creates exponentially more value than pursuing them separately.
The Indigenous business multiplier isn’t just good economics: it’s a blueprint for what business can become when it’s rooted in community, driven by purpose, and measured by its impact on human flourishing. Non-Indigenous organisations can be proactive in sourcing from Indigenous-owned businesses and ensure procurement teams understand the social value being created.
A copy of the report is available here.
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