Supply Nation, which manages Australia’s largest national directory of verified Indigenous businesses, has released its ‘State of Indigenous Business’ report.
The sixth in this series, the report provides insights into the current state of the sector, particularly the contribution supplier diversity and procurement has on the growth and success of Aboriginal and Torres Strait Islander-owned businesses.
In the financial year 2023-24, Supply Nation facilitated $4.6 billion in procurement spend from its corporate, government and not-for-profit members to verified Indigenous businesses. This represents an increase of $500 million over the previous year.
The research finds that Supply Nation members with a Reconciliation Action Plan (RAP) spent a much greater amount with Indigenous-owned businesses at $3.8 billion compared to $776 million for members without a RAP.
Other key findings include:
- A total of 284,864 contracts were awarded for the year with the largest contract valued at $91 million between a resources company and a facilities management business.
- There were 713 contracts valued at over $1 million, with 22% of those being awarded to businesses owned by women.
- For the reporting year, 89% of procurement spend was with small- to medium-sized enterprises.
- Supply Nation Registered businesses received 74,000 contracts in total, valued at $1.9 billion, while Certified businesses received 210,000 contracts in total, valued at $2.7 billion.
- Member organisations spending the most (a total of $1.3 billion) and suppliers who received the most contracts (a total of $1.4 billion) have been with Supply Nation for 5-9 years.
“In a year where business has confronted significant inflationary pressures and global uncertainty, our members and suppliers have stepped up to the challenge and continued their commitment to values-based collaboration. Their efforts bring tangible benefits to their business growth and the communities they serve,” says Supply Nation CEO Kate Russell.
“Supply Nation is celebrating 15 years of working alongside Aboriginal and Torres Strait Islander suppliers. We are in the business of creating long-term, authentic and sustainable partnerships that bring real economic empowerment, jobs growth and better social outcomes. This report offers wonderful insights into the growth and success of Indigenous businesses – something we should all be proud of.”
Supply Nation’s report is available here.