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Understanding how Indigenous
community factors affect Indigenous
entrepreneurial process


Bob Kayseas, Ph.D.
Purpose of interest
Purpose of interest


• My own heritage (community)

• The situation that exists in many communities;
Purpose of interest


• IF INDIGENOUS PEOPLE WILL ONLY REJECT
  THEIR OWN HISTORY, INTELLECTUAL
  DEVELOPMENT, LANGUAGE, AND CULTURE AND
  REPLACE THESE THINGS WITH EURPOEAN
  VALUES AND IDEALS, THEN INDIGENOUS
  PEOPLE WILL SURVIVE

  (Ryser in Seton, 1999, 4; emphasis in original).
Purpose of interest
• …Stimulation of Indigenous entrepreneurship has
  the potential to repair much of the damage through
  creation of an enterprise culture, which fully respects
  Indigenous traditions but empowers Indigenous
  people as economic agents in a globally competitive
  modern world

•   (Hindle and Lansdowne, 2005).
Research problem
• A core question:
   – what makes for successful as distinct from unsuccessful
     entrepreneurship in the Canadian band community
     context?
• To answer this I needed to understand how
  Indigenous context at the community level influences
  entrepreneurial process.
• Intended outcome…
Entrepreneurial process
• My core focus…
   – Involves all the functions, activities, and actions associated
     with the perceiving of opportunities

   – and the creation of value based on the perceived
     opportunities.


• Within the context of Canadian First Nations…
Outcomes
• To describe and explain the importance of and the
  relationships between key contextual factors that affect
  successful or unsuccessful entrepreneurship within the
  context of the Indigenous Canadian Band community
• To assist prospective Indigenous entrepreneurs to negotiate
  the positive and negative influences of these factors in order
  to develop entrepreneurial initiatives that are likely to succeed
  for the benefit of both the entrepreneur and the community at
  large.
Entrepreneurial environment

• Considerable variation of people who choose
  self-employment by starting new firms across
  communities, regions, nations.
  – Causal factors?
  – Environmental factors?
• The ‘entrepreneurial environment’ is the
  combination of factors that play a role in
  entrepreneurship developing in a country or
  region
Entrepreneurial environment
•   (1) Venture capital availability
•   (2) Presence of experienced entrepreneurs
•   (3) Technically skilled labour force            Suggests that these
                                                    affect both the
•   (4) Accessibility of suppliers                  entrepreneurial process
•   (5) Accessibility of customers or new markets   and the outcomes
•   (6) Governmental influences
•   (7) Proximity of universities
•   (8) Availability of land or facilities
•   (9) Accessibility of transportation
•   (10) Attitude of the area population
•   (11) Availability of supporting services
•   (12) Living conditions
Case Studies


                                                                        Membertou First
                                                                        Nation, NS




Neskonlith First
Nation

Osoyoos Indian                                                          Shubenacadie First
Band                                                                    Nation
                                             Lac La Ronge Indian Band
                   Onion Lake First Nation
How and what affect the
entrepreneurial process?
YY First Nation
• 80%to 90% reliance on social assistance
• 128 jobs – all in band government positions – and
  another 1,000 unemployed
• Failed ventures
• Social environment is ‘harsh’
XY First Nation
• The chief and council operated almost all business
  affairs.
   – The Xx Mall had a debt load of approximately three
     quarters of a million dollars.
   – The Ranch was on the verge of shutting down.
• The band is now in the process of delegating the
  authority for all of its business operations to the
  newly created Nation Development Corporation.
Xx First Nation
• Seventy percent of the band membership is ‘on social
  assistance’ (Interviewee, 2009).
• When asked why there was such a high dependency on
  social assistance payments, ‘lack of jobs, lack of skills, lack of
  commitment sometimes’ was offered as reasons
• One Participant attributes the reliance on social assistance as
  being related to, ‘anything from fear of success to or just a
  bad habit’ (Manuel, Martha, 2006).
Dependency
        For thousands of years Native people were a part of the local and
 regional economy. Yet over the last 100 years Natives have been
 marginalized and denied their right to provide for themselves and their
 families.
        If you go back 100 years in our territory you find a sustainable
 economy, a trading people who did business with people to the north and
 to the south. But the conditions after contact and the takeover of our affairs
 by the Indian Agent soon led to complete dependence on the Indian Agent
 office in nearby Vernon…
        Our major weakness…is all the leftover dysfunction from our colonial
 past – the control exerted over us by the Indian Act, the administration of
 our affairs by the D.I.A., family breakdown, the cycle of welfare, the
 victimization syndrome, the dependency syndrome are still with us today.
 We are like a Third World country trying to emerge from a colonial past
 (Chief Louis).
Land
  So it is really more a matter of making sure that you release
  the capital that has been for so long, what is the terminology?
  Trapped capital. You know the fact that it is capital for First
  Nations (the land) is basically burdened with DIA…Nobody
  goes by without talking about the escalating real estate values
  in this country and how land prices have been going up 20,
  25, 35% or more annually. And here (on-reserve) real estate
  gets locked and its not allowed to have the same leveraging
  effect or the same opportunities for being able to enjoy that
  elevation in value (Chris Scott, 2005).
Culture
…when people come here (Inkameep Canyon Golf
 Course) they are going to know that they are on a
 First Nations golf course. And, yeah, we may lose
 some customers over it but I would rather have a
 company that breaks even and showcases First
 Nation heritage… you know you are in a First
 Nations business, than have a business that says
 you have a lot of money but you have sold out and
 you have nothing there to identify that you are in a
 First Nations business (Louis 2005).
Culture
…I would rather have a company that loses money but
  still has the ability to stay open but has the majority
  or all First Nation employment, than have a company
  that makes a lot of money yet has very little or no
  First Nation employment…To me I would put a
  company at the bottom of the list that doesn’t have
  the majority or all First Nation employment as
  opposed to one that is making money with no native
  employment (Louis 2005).
Findings
The intersection of First Nations systems and
the western world


                          Western world
                           Western world
      First Nations
      First Nations
                      economic, legal, social
                       economic, legal, social
         Systems
         Systems
                         political systems
                          political systems
The Indigenous Community Venturing Model
Projects that my research
led me to…
Business Readiness
Investment Gateway
Business Readiness




                     26
Investment Development




                         27
Saskatoon Tribal Council
Saskatoon Tribal Council
      * STC
       * STC
Investments Ltd
                                        Political & Corporate Structure
  Investments Ltd
 Partnership as
   Partnership as
 represented by                                      Treaty Assembly
                                                     Treaty Assembly
   represented by
STC Investments
 STC Investments
   Corporation
    Corporation                                                         Saskatoon Tribal Council
                                                                         Saskatoon Tribal Council
 *First Alliance                        Elders
                                        Elders                           Is the 77 STC FN Chiefs who also are the
  *First Alliance                                                         Is the STC FN Chiefs who also are the
  Construction                                                           Board of Directors for each Corporation
    Construction                                                          Board of Directors for each Corporation
  Solutions Ltd
    Solutions Ltd
 Partnership as
   Partnership as
 represented by
                                              Senators
                                               Senators
   represented by
  First Alliance                                                                  Tribal Chief
                                                                                  Tribal Chief
   First Alliance
  Construction
    Construction
 Solutions Corp
  Solutions Corp
STC Investments                                                                                    Vice Chief
                                                                                                   Vice Chief
 STC Investments
 LP owns 30%
   LP owns 30%

 *STC Casino                SDC Development
                             SDC Development         Saskatoon
                                                      Saskatoon      Cress Housing
                                                                      Cress Housing      STC Urban
                                                                                          STC Urban             STC
                                                                                                                 STC
   *STC Casino
 Holdings Ltd                 Corporation
                               Corporation         Tribal Council
                                                    Tribal Council    Corporation
                                                                       Corporation           First
                                                                                              First           Health &
                                                                                                               Health &
   Holdings Ltd
Partnership as                                          Inc.
                                                         Inc.                              Nations
                                                                                            Nations            Family
                                                                                                                Family
  Partnership as
represented by                                                                           Services Inc.
                                                                                          Services Inc.       Services
                                                                                                               Services
  represented by          Cattail Holdings Ltd.
  STC Casino               Cattail Holdings Ltd.                                                                Inc.
                                                                                                                 Inc.
    STC Casino             (Partnership with
Holdings Corp.              (Partnership with
 Holdings Corp.             Muskeg Lake)
                             Muskeg Lake)
* Dakota Dunes             SDCDC owns 40%
                            SDCDC owns 40%
 * Dakota Dunes
  Community
   Community
  Development
   Development
  Corporation
   Corporation
*Affiliated with STC First Nations –
 *Affiliated with STC First Nations –
separate Board of Directors
 separate Board of Directors
Kinistin First
                                           Kinistin First
                                             Nation
                                              Nation


       Whitecap
        Whitecap
      Dakota First                                                      One Arrow
                                                                          One Arrow
       Dakota First
        Nation                                                          First Nation
                                                                         First Nation
         Nation
                                      Assembly of Nations
                                       Assembly of Nations



                                          Government
                                           Government
                                            House
                                             House


Mistawasis First
 Mistawasis First
    Nation                                                                Muskeg Lake
                                                                           Muskeg Lake
     Nation                       CC & C, Elders, Senators,
                                    & C, Elders, Senators,
                                                                          Cree Nation
                                                                           Cree Nation
                                         TC, TVC
                                           TC, TVC




                      Muskoday
                        Muskoday
                      First Nation                      Yellow Quill
                                                         Yellow Quill
                       First Nation
                                                        First Nation
                                                         First Nation
Membership of the seven
                                            Membership of the seven
                                              STC First Nations
                                               STC First Nations




  Senators, Elders, Veterans
   Senators, Elders, Veterans                  Assembly of Nations
                                                Assembly of Nations              Legislative Authority



                                                                                 Lead Political Body
                                                                                 representing Seven
Vice Chief                  Tribal Chief         Chief’s Council                 Nations AND
 Vice Chief                  Tribal Chief         Chief’s Council                Lead Governance
                                                                                 Body – oversees all
          STC Holding                                                            operations at a
                                                                                 strategic level
          Co.

                                                  Board of Directors of
                                                    Board of Directors of
                                                      STC Entities               Operations
                                                        STC Entities
                                            (structure yet to be determined)
                                              (structure yet to be determined)
Organizational Values
• Cree;
  – Askeew Pim Atchi howin (make a living in a good way);
  – Wah kooh toowin (laws of familial relationships and the
    respective duties and responsibilities);
  – Meyo Weecheh towin (principles of good relations);
  – Wi Taski Win (living together on the land in harmony)
Institute for Tribal Energy Asset
     Management, and Mining (ITEAM2)


33
• Questions

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Understanding how Indigenous community factors affect Indigenous entrepreneurial process

  • 1. Understanding how Indigenous community factors affect Indigenous entrepreneurial process Bob Kayseas, Ph.D.
  • 3. Purpose of interest • My own heritage (community) • The situation that exists in many communities;
  • 4. Purpose of interest • IF INDIGENOUS PEOPLE WILL ONLY REJECT THEIR OWN HISTORY, INTELLECTUAL DEVELOPMENT, LANGUAGE, AND CULTURE AND REPLACE THESE THINGS WITH EURPOEAN VALUES AND IDEALS, THEN INDIGENOUS PEOPLE WILL SURVIVE (Ryser in Seton, 1999, 4; emphasis in original).
  • 5. Purpose of interest • …Stimulation of Indigenous entrepreneurship has the potential to repair much of the damage through creation of an enterprise culture, which fully respects Indigenous traditions but empowers Indigenous people as economic agents in a globally competitive modern world • (Hindle and Lansdowne, 2005).
  • 6. Research problem • A core question: – what makes for successful as distinct from unsuccessful entrepreneurship in the Canadian band community context? • To answer this I needed to understand how Indigenous context at the community level influences entrepreneurial process. • Intended outcome…
  • 7. Entrepreneurial process • My core focus… – Involves all the functions, activities, and actions associated with the perceiving of opportunities – and the creation of value based on the perceived opportunities. • Within the context of Canadian First Nations…
  • 8. Outcomes • To describe and explain the importance of and the relationships between key contextual factors that affect successful or unsuccessful entrepreneurship within the context of the Indigenous Canadian Band community • To assist prospective Indigenous entrepreneurs to negotiate the positive and negative influences of these factors in order to develop entrepreneurial initiatives that are likely to succeed for the benefit of both the entrepreneur and the community at large.
  • 9. Entrepreneurial environment • Considerable variation of people who choose self-employment by starting new firms across communities, regions, nations. – Causal factors? – Environmental factors? • The ‘entrepreneurial environment’ is the combination of factors that play a role in entrepreneurship developing in a country or region
  • 10. Entrepreneurial environment • (1) Venture capital availability • (2) Presence of experienced entrepreneurs • (3) Technically skilled labour force Suggests that these affect both the • (4) Accessibility of suppliers entrepreneurial process • (5) Accessibility of customers or new markets and the outcomes • (6) Governmental influences • (7) Proximity of universities • (8) Availability of land or facilities • (9) Accessibility of transportation • (10) Attitude of the area population • (11) Availability of supporting services • (12) Living conditions
  • 11. Case Studies Membertou First Nation, NS Neskonlith First Nation Osoyoos Indian Shubenacadie First Band Nation Lac La Ronge Indian Band Onion Lake First Nation
  • 12. How and what affect the entrepreneurial process?
  • 13. YY First Nation • 80%to 90% reliance on social assistance • 128 jobs – all in band government positions – and another 1,000 unemployed • Failed ventures • Social environment is ‘harsh’
  • 14. XY First Nation • The chief and council operated almost all business affairs. – The Xx Mall had a debt load of approximately three quarters of a million dollars. – The Ranch was on the verge of shutting down. • The band is now in the process of delegating the authority for all of its business operations to the newly created Nation Development Corporation.
  • 15. Xx First Nation • Seventy percent of the band membership is ‘on social assistance’ (Interviewee, 2009). • When asked why there was such a high dependency on social assistance payments, ‘lack of jobs, lack of skills, lack of commitment sometimes’ was offered as reasons • One Participant attributes the reliance on social assistance as being related to, ‘anything from fear of success to or just a bad habit’ (Manuel, Martha, 2006).
  • 16. Dependency For thousands of years Native people were a part of the local and regional economy. Yet over the last 100 years Natives have been marginalized and denied their right to provide for themselves and their families. If you go back 100 years in our territory you find a sustainable economy, a trading people who did business with people to the north and to the south. But the conditions after contact and the takeover of our affairs by the Indian Agent soon led to complete dependence on the Indian Agent office in nearby Vernon… Our major weakness…is all the leftover dysfunction from our colonial past – the control exerted over us by the Indian Act, the administration of our affairs by the D.I.A., family breakdown, the cycle of welfare, the victimization syndrome, the dependency syndrome are still with us today. We are like a Third World country trying to emerge from a colonial past (Chief Louis).
  • 17. Land So it is really more a matter of making sure that you release the capital that has been for so long, what is the terminology? Trapped capital. You know the fact that it is capital for First Nations (the land) is basically burdened with DIA…Nobody goes by without talking about the escalating real estate values in this country and how land prices have been going up 20, 25, 35% or more annually. And here (on-reserve) real estate gets locked and its not allowed to have the same leveraging effect or the same opportunities for being able to enjoy that elevation in value (Chris Scott, 2005).
  • 18. Culture …when people come here (Inkameep Canyon Golf Course) they are going to know that they are on a First Nations golf course. And, yeah, we may lose some customers over it but I would rather have a company that breaks even and showcases First Nation heritage… you know you are in a First Nations business, than have a business that says you have a lot of money but you have sold out and you have nothing there to identify that you are in a First Nations business (Louis 2005).
  • 19. Culture …I would rather have a company that loses money but still has the ability to stay open but has the majority or all First Nation employment, than have a company that makes a lot of money yet has very little or no First Nation employment…To me I would put a company at the bottom of the list that doesn’t have the majority or all First Nation employment as opposed to one that is making money with no native employment (Louis 2005).
  • 21. The intersection of First Nations systems and the western world Western world Western world First Nations First Nations economic, legal, social economic, legal, social Systems Systems political systems political systems
  • 22. The Indigenous Community Venturing Model
  • 23. Projects that my research led me to…
  • 25.
  • 29. Saskatoon Tribal Council * STC * STC Investments Ltd Political & Corporate Structure Investments Ltd Partnership as Partnership as represented by Treaty Assembly Treaty Assembly represented by STC Investments STC Investments Corporation Corporation Saskatoon Tribal Council Saskatoon Tribal Council *First Alliance Elders Elders Is the 77 STC FN Chiefs who also are the *First Alliance Is the STC FN Chiefs who also are the Construction Board of Directors for each Corporation Construction Board of Directors for each Corporation Solutions Ltd Solutions Ltd Partnership as Partnership as represented by Senators Senators represented by First Alliance Tribal Chief Tribal Chief First Alliance Construction Construction Solutions Corp Solutions Corp STC Investments Vice Chief Vice Chief STC Investments LP owns 30% LP owns 30% *STC Casino SDC Development SDC Development Saskatoon Saskatoon Cress Housing Cress Housing STC Urban STC Urban STC STC *STC Casino Holdings Ltd Corporation Corporation Tribal Council Tribal Council Corporation Corporation First First Health & Health & Holdings Ltd Partnership as Inc. Inc. Nations Nations Family Family Partnership as represented by Services Inc. Services Inc. Services Services represented by Cattail Holdings Ltd. STC Casino Cattail Holdings Ltd. Inc. Inc. STC Casino (Partnership with Holdings Corp. (Partnership with Holdings Corp. Muskeg Lake) Muskeg Lake) * Dakota Dunes SDCDC owns 40% SDCDC owns 40% * Dakota Dunes Community Community Development Development Corporation Corporation *Affiliated with STC First Nations – *Affiliated with STC First Nations – separate Board of Directors separate Board of Directors
  • 30. Kinistin First Kinistin First Nation Nation Whitecap Whitecap Dakota First One Arrow One Arrow Dakota First Nation First Nation First Nation Nation Assembly of Nations Assembly of Nations Government Government House House Mistawasis First Mistawasis First Nation Muskeg Lake Muskeg Lake Nation CC & C, Elders, Senators, & C, Elders, Senators, Cree Nation Cree Nation TC, TVC TC, TVC Muskoday Muskoday First Nation Yellow Quill Yellow Quill First Nation First Nation First Nation
  • 31. Membership of the seven Membership of the seven STC First Nations STC First Nations Senators, Elders, Veterans Senators, Elders, Veterans Assembly of Nations Assembly of Nations Legislative Authority Lead Political Body representing Seven Vice Chief Tribal Chief Chief’s Council Nations AND Vice Chief Tribal Chief Chief’s Council Lead Governance Body – oversees all STC Holding operations at a strategic level Co. Board of Directors of Board of Directors of STC Entities Operations STC Entities (structure yet to be determined) (structure yet to be determined)
  • 32. Organizational Values • Cree; – Askeew Pim Atchi howin (make a living in a good way); – Wah kooh toowin (laws of familial relationships and the respective duties and responsibilities); – Meyo Weecheh towin (principles of good relations); – Wi Taski Win (living together on the land in harmony)
  • 33. Institute for Tribal Energy Asset Management, and Mining (ITEAM2) 33