Aboriginal Co-operatives in Canada - Centre for the Study of Co ...

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~ C O - O P S I N Q U É B E C A B O R I G I N A L C O M M U N I T I E Sorganizational structure of Nunavik co-operatives. The figures they present are of butlimited use to us today, since they no longer reflect the current situation. For this purpose,one would do much better to consult the minutes and annual reports of the Fédération descoopératives du Nouveau-Québec, for that is where the most recent data are to be found.The great majority of the works on economic development in Nunavik were produced toolong ago—most of them in the eighties—to offer profiles of any validity today.According to the information in the minutes of the general assembly of the Fédération descoopératives du Nouveau-Québec held from April 4–11, 2000 (FCNQ 2000 (b)), sales ofInuit carvings seem to be one of the major current concerns of the Nunavik co-operatives.For some years now, the fédération has been encountering substantial problems in sellingthese carvings, which are said to be sometimes of mediocre quality. The quality of thecarvings is, in fact, a major, recurring problem. As a result, the fédération is forced to sellthem at a discount, which affects not only sales and finances but also the image of Nunavikart.In recent years, the co-operatives have also developed tourism packages to northernQuébec. This sector is doing very well. For the year 2000, 191 hunting trips and 138fishing trips have been reserved, representing about 65 percent of the excursions available(FCNQ 2000 (b), p. 29). The sector is experiencing certain growth pains, however, due toa lack of adequate guide training. Lack of training among co-operative employees andgeneral management is another constant concern. According to Investissement Québec(telephone conversation, 2000), which grants loan guarantees to the co-operatives of NewQuébec, the two main causes of the poor operation of certain co-operatives are unskilledpersonnel (it identifies, in particular, shortcomings at the general management level) andcompetition from the North West Company (formerly the Hudson’s Bay Company) incertain villages.The Co-operatives in the SouthCo-operative experiences south of the 55th parallel have not received any thorough study.There is some literature, however, on individual entrepreneurship on Native reserves inQuébec. Harold Bherer is key figure in this regard. In his work Wampum and LettersPatent, Bherer analyzes the entrepreneurial development of Native communities in termsof different variables such as geographic location, culture and traditions, and naturalresources (Bherer et al. 1990). Company objectives, therefore, vary depending on thegeographic, demographic, and cultural characteristics of each Native community. Bherernonetheless manages to identify certain common features of business development inAboriginal communities.~ 223
A P P E N D I X C ~The business, whether individual or collective, is seen in many Native communities as ameans of defending and preserving the vitality of culture on the reserve. The community(or family) dimension is thus a factor even in an individual enterprise. Family members areparticularly present during the start-up phase, and the entrepreneur naturally shares his orher profit with the family. The importance of family life has much to do with the desire ofAboriginal entrepreneurs to limit the growth of their business. Their main goal is to meetthe needs of their community, not to be constantly maximizing profits. This cultural traitexplains why one finds so many small businesses in Aboriginal communities. Given thiscultural aspect, Bherer seems to agree that the community formula, from which the cooperativewas born, is particularly well suited to traditional Native values: “The collectiveenterprise (created by a board council, group, or co-operative) then becomes a privilegedvehicle of the cultural syntheses required for community development, a means ofpreserving its special character and fighting against assimilation into White culture”(Bherer et al. 1990, p. 145).In 1990, the participants in a symposium on Native entrepreneurship (Grasse and Bherer1990) proposed to encourage the development of enterprises of a “third type.” They feltthat a business that could deliver projects for the community while allocating a portion ofthe profits to “individual developers” was the one best adapted to Aboriginal culture. Symposiumparticipants regarded this type of enterprise as “the true foundation of Nativeentrepreneurship.” Although not specifically defined as such, this business of the “thirdtype” is oddly similar to the co-operative formula. Incidentally, it would appear that thisbusiness model is not being given sufficient consideration by band councils.Bherer identifies three reasons for starting a co-operative: to create jobs on the reserve, totake control of economic development, and to get the chance to be a decision maker inthe community. Using a few case studies done on reserves, Bherer manages to identify thefactors of success and failure that are most often cited by the Native entrepreneurs questioned.Factors affecting the success of an enterprise include the owner’s commitment(whether an individual or collective owner), the support provided by the family, and thefiscal advantages on the reserves. The entrepreneurs emphasize the importance of notdepending on outside aid, however, so they consider it a priority to aim to be self-financingin the short term. The main causes of failure include mismanagement due to lack of technicalknowledge, and lack of funding (which is either not available or limited by restrictivegovernment criteria). For co-operatives specifically, a major cause of failure is lowenthusiasm by the members and employees, which compromises the organization’sproductivity.Certain difficulties peculiar to the development of an economy on a reserve also emergedat the symposium on Native entrepreneurship. Among the main ones are the location of224 ~ F A U B E R T - M A I L L O U X / G I R A R D
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A REPORT ONAboriginalCo-operativesi
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Copyright © 2001 Centre for the St
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A B O R I G I N A L C O - O P E R A
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A B O R I G I N A L C O - O P E R A
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Table of ContentsExecutive Summary
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F O R E W O R DThe Nature of This S
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~ F O R E W O R DCo-operatives are
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C H A P T E RO N EThe Current State
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~ T H E C U R R E N T S T A T EGove
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~ T H E C U R R E N T S T A T EFirs
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~ T H E C U R R E N T S T A T ESelf
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~ T H E C U R R E N T S T A T EUnde
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~ T H E C U R R E N T S T A T EThir
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~ T H E C U R R E N T S T A T Eretu
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~ T H E C U R R E N T S T A T Ehave
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~ T H E C U R R E N T S T A T Epatt
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~ T H E C U R R E N T S T A T EOngo
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~ T H E C U R R E N T S T A T Epote
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~ E M E R G I N G T H E M E SThe ne
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~ E M E R G I N G T H E M E SEmergi
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~ E M E R G I N G T H E M E Sl’Ou
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~ E M E R G I N G T H E M E SConclu
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~ E M E R G I N G T H E M E SAkochi
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~ E M E R G I N G T H E M E SManage
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~ E M E R G I N G T H E M E SConclu
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~ T H E P O T E N T I A L F O R G R
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APPENDIX APART 1Socio-Economic Prof
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5. Relative performance of consumer
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Every year, the Co-operatives Secre
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1. Formation of Aboriginal Co-ops a
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is even more striking when we look
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The dichotomous structure ofactivit
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2.2 Sectoraldistribution ofAborigin
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in sectors that are more labor inte
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77Table 2.3 ACTIVITIES OF A SAMPLE
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3. Organization of Aboriginal co-op
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The selling of Inuit art by individ
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caisses populaires Desjardins. The
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Both the Federal and Provincial Gov
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4.2 Sales GrowthIn this section, we
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products (basically food and hardwa
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in employment between 1993 and 1997
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health of co-ops in general. Unlike
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“overcapitalization” by Aborigi
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5. Relative Performance of Consumer
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5.3 Consumer Products and Food Sale
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The “Aboriginal” member spends
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to other consumer co-ops.It was als
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Aboriginal) are more liquid than th
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6.2 EmploymentFigure 6.2 shows the
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Aboriginal workers could receive el
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of two major components: property (
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In short, Inuit co-ops are an impor
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115Table 6.3 Selected Statistics of
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some analysis that we felt was impo
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Aboriginal co-ops remain active in
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Indian Affairs and Northern Develop
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HIGHLIGHTS• Population, including
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PopulationFigure A.1 Population in
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Table A.1 Public School Enrollments
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Table A.4 Aboriginal Employment Rat
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were 13.7% and 20.7% respectively,
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Consumer Price Index (CPI)Figure A.
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D. Finance and InvestmentThis secti
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BibliographyCensus Dictionary, Fina
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FIGURE B1 A MAP OF CANADIAN ABORIGI
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~ P E R S P E C T I V E S O F R E G
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2.0 INCREASING SELF-RELIANCE2.1 LAN
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CANADA MORTGAGE AND HOUSING CORPORA
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3.0 SUPPORTIVE BUSINESS ENVIRONMENT
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2.0 INCREASING SELF-RELIANCE2.1 LAN
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INDIAN AND NORTHERN AFFAIRS CANADA1
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1.4 INNOVATION (FINANCIAL AND NON-F
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2.2 WORKFORCE TRAINING AND EXPERIEN
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3.2 CONNECTEDNESS INITIATIVESProgra
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Page 232 and 233: Bibliography[Quotes in the body of
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Page 266 and 267: ~ M E T H O D O L O G Y2. In-Person
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~ C A S E S T U D I E Sthe main foc
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~ C A S E S T U D I E Sthey sold, t
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~ C A S E S T U D I E Sboth in Sask
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~ C A S E S T U D I E Sestimate the
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~ C A S E S T U D I E SThey are les
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A P P E N D I X I ~have been diffic
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A P P E N D I X I ~arts and crafts.
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A P P E N D I X I ~286 ~
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A P P E N D I X I ~288 ~
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~ C A S E S T U D I E SIkaluktutiak
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A P P E N D I X I ~In order to meet
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A P P E N D I X I ~and recently dra
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A P P E N D I X I ~The bakery was s
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A P P E N D I X I ~Bill describes h
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A P P E N D I X I ~Reasons for Succ
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A P P E N D I X I ~Bill states, “
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A P P E N D I X I ~The future looks
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A P P E N D I X I ~communities in C
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A P P E N D I X I ~third parties wh
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A P P E N D I X I ~measure of confi
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A P P E N D I X I ~BibliographyPape
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A P P E N D I X I ~number of areas,
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A P P E N D I X I ~although the org
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A P P E N D I X I ~BibliographyPape
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A P P E N D I X I ~Apaqtukewaq Fish
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A P P E N D I X I ~ManagementIn the
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A P P E N D I X I ~Anishinabek Nati
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A P P E N D I X I ~termed Aborigina
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A P P E N D I X I ~Profitable Proje
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A P P E N D I X I ~ANCU will only b
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A P P E N D I X I ~3. Funding is se
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A P P E N D I X I ~knowledgeable ab
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A P P E N D I X I ~Native Inter-Tri
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A P P E N D I X I ~are both working
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A P P E N D I X I ~local school and
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A P P E N D I X I ~We found that th
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A P P E N D I X I ~In return for th
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A P P E N D I X I ~When they do hav
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A P P E N D I X I ~The two NITH int
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A P P E N D I X I ~for anyone to us
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A P P E N D I X I ~youth of the com
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A P P E N D I X I ~Community Involv
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A P P E N D I X I ~Advice to Others
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A P P E N D I X I ~Neechi Foods Co-
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A P P E N D I X I ~Community Impact
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A P P E N D I X I ~few years as a r
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A P P E N D I X I ~The worker co-op
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A P P E N D I X I ~Since the start
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A P P E N D I X I ~to urban Native
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A P P E N D I X I ~December because
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A P P E N D I X I ~Social Attitudes
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A P P E N D I X I ~years ago. The o
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A P P E N D I X I ~sources can be m
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A P P E N D I X I ~Wilp Sa Maa’y
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A P P E N D I X I ~opened an accoun
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A P P E N D I X I ~grow on the coas
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A P P E N D I X I ~We also need to
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A P P E N D I X I ~• We gave pres
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A P P E N D I X I ~its direction. (
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A P P E N D I XJAdditional Case Stu
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A P P E N D I X J : A D D I T I O N
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A P P E N D I X K : T H E C O N S U
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