Although Canada’s economic environment is changing due to the internet revolution, many Indigenous entrepreneurs still face the digital divide. Indigenous company owners in the digital economy face both opportunities and enduring challenges, according to a recent 2025 research from the Indigenous Prosperity Foundation (IPF). Closing these disparities, from e-commerce and artificial intelligence (AI) to broadband access, is not only an equitable issue but also a national economic need. Providing digital tools to Indigenous businesses will open up new avenues for development, creativity, and community resilience.
The State of the Digital Divide
Indigenous-owned companies are disproportionately underrepresented in the digital economy, despite contributing more than $30 billion to Canada’s economy annually. According to the IPF survey, 65% of Indigenous business owners face challenges related to expensive internet and erratic connectivity, particularly in rural and isolated areas. Out of 748 First Nations communities, only 20 have the complete digital infrastructure required to fully engage in the digital marketplace, including a fibre backbone, a last-mile connection, and LTE mobility.
Economic and social inequalities are sustained by this lack of connectivity, which restricts access to online business tools, digital healthcare, and virtual education. For Indigenous enterprises to grow, export, and compete internationally, the rising concern of the estimated $5.2 billion digital infrastructure deficit must be addressed.
Barriers to Digital Adoption: Training, Mentorship, and Support
Business support and digital literacy continue to be significant obstacles, in addition to infrastructure. Fifty-seven percent of Indigenous business owners do not have access to digital training, which prevents them from utilizing automation, AI-powered productivity tools, and e-commerce, according to the IPF survey. Lack of mentorship and support for digital businesses is cited by 39% of respondents as a barrier to obtaining funding, embracing new technologies, and growing their market.
Indigenous female entrepreneurs have supplementary obstacles: Participation in the internet marketplace is discouraged by the fact that 91% of respondents express financial constraints, and that many have experienced online harassment.
Although initiatives like PLATO’s mentorship networks and software tester training are starting to close these gaps, more community-based, culturally appropriate training is needed to ensure that Indigenous business owners can thrive in the digital era.
Enabling Digital Transformation Through Reliable Broadband
The success of digital businesses is based on dependable, reasonably priced broadband. However, 363 First Nations communities lack both broadband and regular cellphone coverage, and 61% of First Nations communities still lack sufficient high-speed internet. Opportunities for remote work, e-commerce, and involvement in Canada’s expanding digital economy are all hampered by this digital exclusion. The IPF research identifies investing in broadband initiatives managed by Indigenous peoples as a major priority, as it enables businesses to reach new markets, adopt digital tools, and develop economic resilience. Partnerships between the government and industry are crucial to ensuring fair access for all Indigenous people and accelerating the development of infrastructure.
Unlocking Growth Through E-Commerce and Digital Marketplaces
Indigenous company owners may access customers across Canada and beyond, thanks to e-commerce, which is a potent driver of business growth. Communities are redirecting spending to local firms and retaining wealth within Indigenous economies, thanks to initiatives like eSupply, Canada’s Indigenous-owned internet platform, which is backed by federal investment.
Entrepreneurs still encounter obstacles when attempting to use e-commerce, due to a lack of mentorship, difficulties with online payment systems, and insufficient technical skills. More Indigenous firms will be able to capitalize on the opportunities presented by e-commerce and digital markets if they have increased access to digital training, business incubators, and culturally relevant support.
AI Adoption and Indigenous Data Sovereignty
Although technology raises concerns about data sovereignty and cultural representation, artificial intelligence (AI) offers opportunities to enhance efficiency, automate processes, and create new business models. Indigenous groups are often excluded from the development of AI legislation and have limited representation in Canada’s IT sector.
In addition to incorporating Indigenous knowledge and data governance concepts, such as OCAP (ownership, control, access, and possession), into national AI policies, the IPF report urges the creation of culturally appropriate digital training in AI and automation.
Preventing digital colonialism and fostering fair innovation requires Indigenous leadership in AI development.
Solutions and Opportunities: A Roadmap for Empowerment
The IPF report provides a clear road map for boosting Indigenous entrepreneurs and closing the digital divide. Important suggestions consist of:
- Putting money into broadband initiatives run by Indigenous peoples to guarantee dependable connectivity.
- Creating digital training in e-commerce, cybersecurity, artificial intelligence, and automation that is culturally appropriate.
- Extending networks of business assistance and mentorship to assist entrepreneurs in navigating the digital transition.
- To guarantee fair access and representation, Indigenous companies should be incorporated into national digital infrastructure and policy decisions.
- Providing targeted funding and online safety strategies to support Indigenous women entrepreneurs.
Canada can boost productivity, generate employment nationwide, and unlock billions of dollars in new economic activity by implementing these measures.
The Future of Indigenous Digital Entrepreneurship
It takes more than simply technology to close the digital divide; it also requires economic self-determination, cultural resilience, and national prosperity. Indigenous business owners are poised to steer Canada’s digital future, but they require equitable access to broadband, support, and training. Through funding Indigenous-led initiatives and incorporating Indigenous perspectives into digital policy, Canada can create a more inventive, resilient, and inclusive economy for everybody. Empowering Indigenous entrepreneurs would benefit both communities and the country as a whole; therefore, now is the time to take action.
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Disclaimer: This article is based on publicly available information intended only for informational purposes. Indigenous-SME Small Business Magazine does not endorse or guarantee any products or services mentioned. Readers are advised to conduct their research and due diligence before making business decisions.
