Ongoing Business Venture Support

The Indigenous Business Australia (IBA) business model ensures that over time its Indigenous partners obtain the industry knowledge, training and skills they need to manage their investments without the assistance of IBA. IBA contributes to this through its preferred model of selling down its equity to these business partners after it has helped to give them the knowledge and skills they need to run a business.

IBA maximises opportunities for its Indigenous partners to sit on management committees and boards of directors, and take up any employment and small business opportunities that may be created by the investment. These experiences help build its Indigenous partners’ capacity in the governance, management and operation of commercial enterprises.

In 2008-2009 the Australian Institute of Company Directors (AICD) in collaboration with IBA developed the Indigenous Governance Program for the boards and senior managers of Indigenous corporations. The AICD’s focus is on ensuring that Indigenous directors and board members are equipped to meet the demands and responsibilities of their roles, thereby developing firmer foundations for their organisations.

In conjunction with Accounting Comes Alive, IBA has also piloted a three-part MoneyTalks workshop, covering basic financial literacy and corporate governance understanding. These interactive and practical workshops give participants the knowledge and tools to be able to participate in the AICD Indigenous Corporate Governance Training Program.

Indigenous partners must have adequate governance arrangements in place and from time to time potential Indigenous partners will not have the cash reserves to take an equity position in an investment. In those circumstances, IBA may lend the required equity to eligible Indigenous partners, if the projected cash returns can support the repayment of the investment loan.

In entering into an investment, IBA documents with the Indigenous partner the objectives they are seeking from the investment. The objectives will include the use of future profits to retire debt, to distribute to other programs managed by the Indigenous organisation or to finance other investment outcomes. IBA will also measure and report on employment outcomes associated with investments and on any measurable social outcomes that flow from the investment to the community.