Profile of businesses in desert Australia

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1 The Working Paper Series Profile of businesses in desert Australia MF Rola-Rubzen D Altangerel FM Gabunada Working Paper

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3 Profile of businesses in desert Australia Maria Fay Rola-Rubzen Delgermaa Altangerel Fe M Gabunada

4 Contributing author information Dr Fay Rola-Rubzen is the Core Project Leader of the Desert Knowledge CRC s Desert Biz core project and Associate Professor at Curtin University of Technology. Fay is an economist with a strong background in economic modelling, rural and regional development, capacity building, community development and small and medium enterprises (SMEs). Delgermaa Altangerel is Project Officer in the Desert Biz core project. She has a background in business and experience working in desert environments. Dr Fe Gabunada is a postdoctoral fellow working with the Desert Biz project. She is experienced in participatory research and development and in working in interdisciplinary teams. Desert Knowledge CRC Working Paper #39 Information contained in this publication may be copied or reproduced for study, research, information or educational purposes, subject to inclusion of an acknowledgement of the source. ISBN: (Web copy) ISSN: (Web copy) Citation Rola-Rubzen MF, Altangerel D and Gabunada FM Profile of businesses in desert Australia. DKCRC Working Paper 39. Desert Knowledge CRC, Alice Springs. The Desert Knowledge Cooperative Research Centre is an unincorporated joint venture with 28 partners whose mission is to develop and disseminate an understanding of sustainable living in remote desert environments, deliver enduring regional economies and livelihoods based on Desert Knowledge, and create the networks to market this knowledge in other desert lands. Acknowledgements The Desert Knowledge CRC receives funding through the Australian Government Cooperative Research Centres Programme; the views expressed herein do not necessarily represent the views of Desert Knowledge CRC or its Participants. For additional information please contact Desert Knowledge CRC Publications Officer PO Box 3971 Alice Springs NT 0871 Australia Telephone Fax Desert Knowledge CRC 2009

5 Contents Introduction...1 Number of businesses in desert areas...1 Contribution of desert businesses to employment...2 What are the types of industries?...2 Income of owner-managers...4 Access to internet by desert enterprises...5 References...5 Profile of businesses in desert Australia Desert Knowledge CRC i

6 Tables Table 1: Number of businesses in desert regions in Australia, Table 2: Internet access by owner-managers of desert businesses by Aboriginal status in desert regions...5 Figures Figure 1: Percentage of Aboriginal-owned and non-aboriginal owned businesses in desert regions...2 Figure 2: Desert businesses employing one or more workers by Aboriginal status in desert regions...2 Figure 3: Industries of Aboriginal-owned businesses in desert regions...3 Figure 4: Industries of non-aboriginal owned businesses in desert regions...3 Figure 5: Individual weekly income of owner-managers of Aboriginal-owned businesses in desert regions...4 Figure 6: Individual weekly income of owner-managers of non-aboriginal owned businesses in desert regions...4 ii Desert Knowledge CRC Profile of businesses in desert Australia

7 Desert Knowledge CRC Working Paper 39: MF Rola-Rubzen, D Altangerel and FM Gabunada Introduction The desert offers numerous opportunities for desert residents. Notably, it is endowed with rich natural resources. It has a strikingly unique landscape, vast mineral deposits and natural resources, and is rich in heritage, culture and traditional knowledge. This natural wealth offers opportunities for business enterprises in a range of industries including tourism, bush food, arts, pastoral and other commercial enterprises that service large companies operating in the desert. But what are the types of businesses in the desert? How many of these businesses are Aboriginal-owned and not Aboriginal-owned, and in what industries are these enterprises engaged? This paper presents a profile of businesses in desert Australia. The paper outlines the number of businesses 1 located in Australian desert regions, the number of businesses by Aboriginal status, the types of industries and the access these enterprises have to internet facilities. The analysis is based on ABS 2006 census data. Number of businesses in desert areas There are businesses in desert Australia. They comprise three per cent of business enterprises in Australia. The majority (66%) are located in semi-arid regions (Table 1). Table 1: Number of businesses in desert regions in Australia, 2006 Ownership Desert region Aboriginal Non-Aboriginal Total a No. % No. % No. % Arid , Semi arid , Overlap b , Total , a Total includes those who did not state Aboriginal status b Overlap regions are those SLAs that have both semi-arid and savannah areas. This will be explained further in Rola-Rubzen et al. (forthcoming). Of the total number of desert businesses, only about one per cent (513) are Aboriginal-owned. The rest (40 383) are non-aboriginal owned. In general, Aboriginal enterprises are scattered across the desert regions, with almost similar percentages located in arid and semi-arid regions; whereas about two-thirds of non-aboriginal-owned businesses are located in the semi-arid region (Figure 1). 1 In this paper, the number of businesses refers to the number of owner-managers of incorporated and unincorporated enterprises. Profile of businesses in desert Australia Desert Knowledge CRC 1

8 Desert Knowledge CRC Working Paper 39: MF Rola-Rubzen, D Altangerel and FM Gabunada 100% 80% 60% 40% 20% 0% Overlap 28 Semi-arid region 38 Arid region 34 Aboriginal Overlap 11 Semi-arid region 67 Arid region 22 Non-Aboriginal Figure 1: Percentage of Aboriginal-owned and non-aboriginal owned businesses in desert regions Contribution of desert businesses to employment In general, owner-managers of both Aboriginal and non-aboriginal businesses across desert regions provide livelihood opportunities for other people, employing one or more people in the business (Figure 2) Per cent Aboriginal Non-Aboriginal Figure 2: Desert businesses employing one or more workers by Aboriginal status in desert regions As can be seen in Figure 2, about 55 per cent of Aboriginal businesses and close to 60 per cent of non-aboriginal enterprises employ at least one other person in the business. What are the types of industries? Desert businesses are engaged in various industries. More than a quarter (26%) of desert Aboriginal enterprises are in mining, manufacturing, electricity, gas, water and waste services as well as construction. About 15 per cent are in agriculture, forestry and fishing; 15 per cent are in accommodation, food services and transport industries; while around 21 per cent are in other industries, including arts and culture (Figure 3). 2 Desert Knowledge CRC Profile of businesses in desert Australia

9 Desert Knowledge CRC Working Paper 39: MF Rola-Rubzen, D Altangerel and FM Gabunada Education and training; health care and social assistance 12% Other industries including culture and arts 21% Accommodation and food services; transport, postal and warehousing 15% Agriculture, forestry and fishing 15% Wholesale; retail trade 11% Mining; manufacturing; electricity gas, water and waste services; construction 26% Figure 3: Industries of Aboriginal-owned businesses in desert regions For non-aboriginal businesses, more than a third are in the agriculture, forestry and fishing sector, while about 20 per cent are in mining, manufacturing, electricity, gas, water and waste services and construction (Figure 4). Education and training; health care and social assistance 4% Other industries including culture and arts 16% Accommodation and food services; transport, postal and warehousing 11% Mining; Wholesale; retail trade 13% manufacturing; electricity gas, water and waste services; construction 20% Agriculture, forestry and fishing 36% Figure 4: Industries of non-aboriginal owned businesses in desert regions Profile of businesses in desert Australia Desert Knowledge CRC 3

10 Desert Knowledge CRC Working Paper 39: MF Rola-Rubzen, D Altangerel and FM Gabunada Income of owner-managers Owner-managers of desert businesses have varying levels of income. More than half (55%) of Aboriginal owner-managers of desert businesses earn a weekly income of $599 and below, 25 per cent earn between $600 $999, while 11 per cent earn $1 300 or more per week (Figure 5). $1000-$1299 9% $1300 or more 11% $0-$249 17% $600-$999 25% $250-$599 38% Figure 5: Individual weekly income of owner-managers of Aboriginal-owned businesses in desert regions On the other hand, about 46 per cent of non-aboriginal owner-managers of incorporated and unincorporated enterprises earn $599 and below per week, while about 28 per cent have a weekly individual income of $600 $999. About 15 per cent earn a weekly income of $1300 or more (Figure 6). $1000-$ % $1300 or more 15% $0-$249 12% $600-$999 28% $250-$599 34% Figure 6: Individual weekly income of owner-managers of non-aboriginal owned businesses in desert regions 4 Desert Knowledge CRC Profile of businesses in desert Australia

11 Desert Knowledge CRC Working Paper 39: MF Rola-Rubzen, D Altangerel and FM Gabunada Access to internet by desert enterprises Modern information and communications technology (ICT) and the era of globalisation offer new opportunities to overcome many of the spatial barriers that confront desert businesses. ICTs offer new ways of doing business and reaching markets. However, the degree by which businesses can harness new developments in ICT will depend to a large degree on their access to the technology. Access to the internet by owner-managers of desert enterprises is shown in Table 2. As can be seen in the table, internet access is available to most desert businesses. However, access by Aboriginal entrepreneurs is lower at 49 per cent, compared with access by non-aboriginal entrepreneurs at about 73 per cent. Table 2: Internet access by owner-managers of desert businesses by Aboriginal status in desert regions Aboriginal status Aboriginal Non-Aboriginal Total b Internet access a No. % No. % No. % With internet access Without internet access Not stated Total a Internet access is based on the owner-manager s household connection b Total includes those who did not state Aboriginal status A more in-depth analysis of the profiles of desert businesses will be available in Rola-Rubzen et al. (forthcoming). References Australian Bureau of Statistics Census of Population and Housing 2006, Commonwealth of Australia Contracted data. ABS, Canberra. Rola-Rubzen MF, Altangerel D and Gabunada FM. (forthcoming). Profile of businesses in desert Australia, DKCRC Research Report. Desert Knowledge Cooperative Research Centre, Alice Springs. Profile of businesses in desert Australia Desert Knowledge CRC 5

12 DKCRC Partners