In an exclusive interview with Indigenous-SME Business Magazine, Dr. Ken S. Coates, author, academic, and Indigenous policy expert, shares a grounded perspective on the realities shaping Indigenous economic development in Canada. Drawing from decades of research and collaboration, Dr. Coates explores why Indigenous businesses are often misunderstood, the importance of true partnership over consultation, and how aligning policy with community values can unlock stronger, more sustainable growth.
Interview By Darian Kovacs
Ken Coates is a non-Indigenous researcher and writer with deep interests in Indigenous business, Indigenous rights, and economic development. Raised in Whitehorse, Yukon, and educated at the University of British Columbia and the University of Manitoba, Ken has worked at universities across Canada and internationally. From his initial studies on the northern Canadian fur trade, Ken has worked on Indigenous economic development corporations, the importance of Indigenous-centric policy development, Indigenous legal rights, the economic impacts of court decisions and new government policies, and the value of Indigenous-controlled financial institutions.
You have worked extensively at the intersection of policy, Indigenous rights, and economic development. From your perspective, what do policymakers often misunderstand about Indigenous economies, especially when it comes to small and medium-sized businesses?
As a non-Indigenous observer and ally, I have always admired the tenacity and resilience of Indigenous communities and businesses. Canadian policy-makers have difficulty appreciating the contributions of SMEs in general and Indigenous companies in particular.
The country is committed to “going big,” pouring billions of dollars in subsidies into foreign-owned businesses in hopes of landing a community-saving major investment. On the Indigenous side, policy-makers continue to underestimate the strength and determination of Indigenous business.
Further, one of the key elements in economic development is mobility – moving capital and commercial attention to the most advantageous business location. Indigenous businesses are open to remote operations and investments in distant projects, but they prioritize the local economy and look for opportunities proximate to their traditional territories. Policy-makers, working in the much less culturally-defined and more formal world of the modern bureaucracy and corporate world, often fail to appreciate the “love of place” that dominates Indigenous approaches to economy-building.
Many economic systems still treat Indigenous communities as stakeholders rather than true partners. What does a real partnership-based approach to economic development look like, and how can it better support Indigenous entrepreneurs and community-owned businesses?
Forty years ago, Canada set off on a long journey to figure out how to collaborate with Indigenous communities. This was not done willingly and was undertaken only in response to political actions and/or court decisions. The process unfolded incrementally: specific business development programs for Indigenous businesses, a slowly expanding commitment to consultation, special arrangements with governments and businesses to provide business capital and, eventually, equity. The half-hearted application of the concept of “free, priority and informed consent” moved the bar a little, but much less than hoped. A new model of successful engagement – based on seeing Indigenous peoples as real and proper partners. Partnerships arise from personal connections and understanding; successful non-Indigenous business people engage with Indigenous peoples as friends and collaborators. Real partnerships emerge from these contacts much more effectively than from specific business proposals, government policies, and investment plans. In my experience, personal contact and deep professional friendships matter more than simple business-case commercial arrangements.
You have highlighted the importance of education and skills development in Indigenous communities. How can universities, training programs, and governments better align with Indigenous economic needs so graduates are prepared to lead in their own communities?
Canada has spent a great deal of money on Indigenous training and education, but sadly, with less impact than expected. The focus on graduates is not the most effective approach. Indigenous peoples and communities need to emphasize the life circumstances of children aged 0 to 5 years, launching more and more healthy children into the education system. Only a small percentage (perhaps as low as 10-20%) of Indigenous students who start school make it through to high school graduation and on to advanced study. Furthermore, the completion of technical skills, college diplomas, or university degrees often leads young people to move to cities or southern work sites. Many Indigenous communities struggle to hold onto the most talented young people. I believe that the economy-builders (government departments, communities, colleges, universities and businesses) need to expand cooperative education and training programs, combining learning opportunities with Indigenous employment to connect young Indigenous people to the workforce as early as possible.
Ensure that young Indigenous people have a strong and positive start to life, support them through their educational journey and put more effort into the transition to full-time employment.
It would be helpful to have a much better sense of what works and does not work in terms of Indigenous career development and employment readiness. A great deal of money and effort is spent in this area, but the results are uneven, at best. The preparatory systems are western-centric, focusing on traditional high school training, college and university programming, and standard Canadian workplace transitional preparation. The workplace outcomes suggest that at least a substantial portion of the career development funding is ineffective. Few of the programs (mostly those delivered by Indigenous governments) focus on Indigenous cultures and traditional values, and take into account the lived realities of Indigenous communities and remote regions. It is time, I believe, to place our trust and confidence where it properly belongs: with Indigenous communities, governments, and Indigenous urban organizations. Government agencies and traditional educational and training institutions have had some 40 years of accelerated funding and government support, but the practical results failed to match the government investment and public expectations.
Large infrastructure and resource projects are often planned without Indigenous leadership at the centre. What changes would help ensure Indigenous businesses and communities are meaningfully included in procurement, planning, and development opportunities?
Canada may, if Prime Minister Carney’s bold and unproven promises about major infrastructure investments and large development projects come to fruition, go through the largest expansion phase in decades. Bill C-5 (the Building Canada Act) promises federal support for “projects of national importance.” The Liberal government proceeded with the Act without consulting Indigenous groups, promising to hold consultations and then completing them after the legislation passed. First Nations, Metis and Inuit groups are not amused. If this is Indigenous consultation in advance of major project developments, Canada has not learned as much as we thought.
The nation’s planning tables are now covered with proposals of road expansion, pipeline development, hydro and transmission line construction, port expansion, and mining activities. In some instances – particularly the proposals that were well advanced as of 2025 – there have already been extensive discussions with affected Indigenous communities.
Several of the projects, including the major LNG plants in British Columbia and the road and part initiative in the Northwest Territories and western Nunavut, were initiated by or jointly with Indigenous communities.
Indigenous peoples cannot assert full leadership of a project unless they are major funders of the activity and have direct authority over the affected lands. This is much easier in the territorial North, where modern treaties have given them clear lines of engagement over projects in their areas. All the policies and procedures are in place to provide Indigenous communities with access to procurement and contracting opportunities and appropriate engagement in planning processes. Recent history makes it clear that having legislation and policy in place does not ensure compliance or successful outcomes. Real commitment and sincere engagement are essential.
Moving forward, Canada needs to shift from a consultation-and-regulation mindset to one based on genuine partnerships. Where such elements are in place, with many mining projects, LNG projects in Kitimat, several key pipelines, energy transmission lines, and other commercial ventures, there are positive outcomes and sustained benefits for the Indigenous peoples. When engagement is grudging, limited and not built into the core operations of the companies involved, outcomes are much more limited and incomplete. Canada can do a great deal better, in large part by picking up on the models established through existing collaborations and partnerships.
Going forward requires the entrenchment of partnership in the development of projects that require Indigenous participation, affect Indigenous communities, or use Indigenous territories. These collaborations must be sincere and require extensive up-front engagement with communities, Indigenous leadership, and Indigenous economic development corporations. Indigenous communities require access to investment capital to have substantial influence over project design and execution.
Partnership, to state the obvious, requires that both/all partners have the capacity to exercise substantial influence over the execution of the project. This requires access to investment capital, managerial capacity, an appropriately trained workforce (or, in developing contexts, access to training programs), and suitable infrastructure (or a detailed plan to build it in a timely manner). In almost all cases in Canada, Indigenous communities are at a distinct disadvantage relative to project proponents. Relationships without real equality are out of balance, by design. The path forward will be rocky; not all development companies make good partners, and not all Indigenous communities and governments are ready to engage fully with major projects. Fortunately, Canada has enough positive examples of productive, mutually beneficial, and long-standing partnerships in infrastructure and resource development.
For young Indigenous professionals, scholars, and entrepreneurs, what advice would you give on building a career in business, policy, or academia while staying connected to their community values and responsibilities?
For much of the last half-century, Young Indigenous professionals were pulled into law (and to a lesser extent, politics) as a means of supporting their Nations. In recent years, business engagement has been added to the list. The rush of young, energetic and talented Indigenous young people into business has been truly impressive. ( Note, by the way, that very few non-Indigenous Canadians try to figure out how they can best help Canada move forward. Career planning for non-Indigenous peoples focuses on career advancement and potential income; societal impact drives a subset of people, but I fear it is a much smaller percentage.) This is the Indigenous super-power: a high proportion of Indigenous young adults seek to lift up their peoples and dedicate their lives and careers to supporting their communities.
As a non-Indigenous academic who has had the pleasure of working with many talented and highly motivated Indigenous people over the decades, I have found that certain elements stand out. First, young people should listen to their community and their elders. They carry the wisdom of the Nation and also look to the long view. If a young person is fortunate, they will also know their strengths, aspirations and special qualities. They should seek counsel from the people who care deeply about the Nation and their members. Find and capitalize on mentors’ support. These may be teachers, community leaders, regional professionals, business people, and key individuals in the not-for-profit sector. Young professionals should find strength in the people around them, particularly those with whom share their vision of the future.
Young people – and not just Indigenous folks – often pull away from community and culture in their 20s, as they focus on education, training and family and career development.
During these key years, it is important that young Indigenous people attend ceremonies, pay attention to culture and community affairs, attend regional Indigenous sporting events, and attend relevant conferences, workshops, and meetings. Perhaps most importantly, and I am sharing advice I have received from many Indigenous elders, it is vital that young Indigenous professionals spend time on land, engaging in harvesting and cultural activities.
Young and aspiring Indigenous professionals have many career options before them. The re-empowerment of Indigenous people in Canada creates many opportunities and presents numerous challenges. First Nations, Inuit, and Métis people need long-term, comprehensive engagement from Indigenous young people if Nations are to thrive in the years ahead. Staying connected with the Indigenous community and culture gives careers meaning and strengthens Indigenous peoples across Canada.
Disclaimer: Indigenous-SME Business Magazine is committed to providing insightful interviews that highlight the successes and challenges faced by small and medium-sized businesses. The views expressed in this interview are those of the guest and may not reflect the opinions of the magazine or its affiliates.
