Improving success rates for Indigenous business engagement

Abstract

Although some oil and gas projects have successfully engaged Indigenous businesses in their supply chain, other projects have found this difficult to achieve. Understanding the risk factors in the process of Indigenous engagement and successfully managing those risks creates a positive environment for Indigenous business engagement, one that is much more likely to support long-term success and minimise business and contract failure. Risk management areas to consider include not understanding Traditional Owner community goals and priorities, not assisting communities to build their capabilities and poor communication. This paper maps these risks and outlines four practical strategies to mitigate these risks: (1) giving local Indigenous businesses the lead time to prepare for work opportunities and build their capabilities; (2) including a mix of large, medium-sized and small local Indigenous businesses in the supply chain; (3) using culturally respectful pathways for Indigenous employment; and (4) maintaining the relationship with Traditional Owner groups. Managing risks and using these practical approaches will improve and increase Indigenous business engagement in project supply chains.