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- Supply Nation members spent a record $5.83 billion on Indigenous-owned businesses in 2024-25, more than double the growth of the previous year.
- Independent research indicates that every $1 invested in the Indigenous business sector generates $3.66 in social and economic value.
- There are now over 6400 verified Indigenous businesses operating across all sectors and scales, with boards advised to prioritise overall value and strategic alignment over lowest-cost contracting.
If your board isn't yet treating Indigenous procurement as a core commercial strategy, you’re missing the point. Last year, the sector generated a record $5.8 billion, proving that supplier diversity makes genuine commercial sense.
Presented by Supply Nation
Indigenous procurement has come a long way from a purely social initiative into a powerful example of a hugely successful economic growth story.
No longer just performative, Indigenous procurement is an effective and practical lever that adds strategic and economic value to businesses while contributing to supply chain resilience and diversification as well as ESG priorities. It’s now in the best interest of boards to incorporate Indigenous businesses into their company’s procurement processes.
“The sector is growing really quickly,” says Kate Russell, CEO of Supply Nation, Australia’s leading supplier diversity organisation. “Indigenous-owned businesses are contributing to the national economy in an incredible way,” she says.
In 2024-25, Supply Nation’s members procured a national record of $5.83 billion from verified Indigenous-owned businesses. That’s an increase of $1.23 billion on the previous year’s figures and more than double the growth for 2023-24.
Additionally, independent research from last year’s Sleeping Giant Rises report shows that for every $1 that goes into an Indigenous business, $3.66 of social and economic value is created.
When Supply Nation began 17 years ago, they had just 13 Indigenous businesses and 13 corporate, government and non-profit buyers – with about $300,000 of contracts that first year, says Russell.
“We've now got over 6400 businesses [in the Indigenous Business Direct database] and over 880 corporate, government and non-profit buyers,” she says. Each month, roughly 50 to 60 new Indigenous businesses join Supply Nation.
Russell believes the implementation of the Indigenous Procurement Policy in 2015 (which mandates a certain percentage of total contract value from Commonwealth, non-corporate entities to be spent on Indigenous business) was likely the start of more mainstream awareness of Indigenous businesses.
Smart business
“Indigenous business presents an alternative at the national, local and state levels that is smart business for a number of reasons,” says Russell.
“It makes strategic sense to have a thriving Indigenous business sector,” she says. “If we can empower Indigenous people to have better outcomes, it’s a better financial investment from the government. No one wants to be receiving benefits if there is an opportunity to be independent.”
Russell also points to the “clear strategic alignment” of being able to position your organisation as having a positive economic impact on its local community. “We know that Indigenous businesses invest their money back into their families and communities,” she says. “It makes sense to try and invest your supply chain dollars into that same community.”
Economically, diversifying the supply chain helps mitigate risk and makes organisations, and the country, more resilient. “COVID demonstrated just how dependent we are on traditional pathways,” says Russell. “If we’re over-reliant on one particular area or one particular supplier, that’s actually a national weakness.”
From an external stakeholder perspective, keeping in line with market trends, such as supply chain ethics, sustainability and provenance, will also serve companies.
“Customers increasingly are asking questions around transparency, supply chain and social licence,” says Russell. “The expectations of the average organisation now is not only returning profits to shareholders or customers, but about having transparency in how they go about it.”
Partnerships with Indigenous-owned businesses can also help boards and their organisations achieve their ESG outcomes. Studies show that not only do consumers care about environmental, social and governance priorities, they spend more on products with ESG-related claims.
“Indigenous businesses present a very appealing positive social impact narrative for the customer,” says Russell. “The younger generation is more willing to spend more money on purchases if it has a story, a connection or there is more social value to it.”
Misconceptions
When it comes to Indigenous businesses, there are some prevalent stereotypes. “One of my favourite myths to bust is to demonstrate the diversity of the sector and capabilities,” says Russell. “Indigenous businesses operate in every sector at every size and scale.”
From businesses making cookies and T-shirts, to construction, mining, telco, media, utility, professional services, government, cryogenic and aerospace engineering companies, the breadth of businesses range from mums and dads operating from a spare room to businesses that export internationally and want to take over the world, says Russell.
“There’s no limitation to the ambition or the aspiration of our Indigenous businesses,” she adds.
Another myth Russell likes to refute is on pricing. Sometimes Indigenous products or services are more expensive, but often they aren’t. Russell’s advice to
Procurement: Don’t put a contract in place because it’s the lowest dollar. “Get a contract because it presents the best value.”
While Supply Nation is frequently mistaken for a government agency that certifies Aboriginality, both are incorrect. However, their verification process of matching names on ASIC documentation with identity documents that confirm Indigeneity (most commonly a certificate of Aboriginality) safeguards procurement confidence.
Start small, build big
Russell sees the role of Supply Nation to not only ensure conversations about Indigenous procurement are happening at a board level, but to support management in implementing a long-term sustainable strategy for how to include Indigenous businesses in their supply chain.
When it comes to setting procurement frameworks, Russell advises board members to start small and build big.
“Be clear on what you're trying to achieve, why you’re trying to achieve it, how you’re going to go about it and then engage a consultant or Supply Nation to make sure it’s successful,” she says. “Becoming a leader in supply diversity does not happen overnight. It takes effort, but comes with huge reward.”
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