The economic key

Entrepreneurialism within First Nations communities is the key to economic development in Northern Ontario, says the minister responsible for FedNor.

Thursday Tony Clement (Con., Parry Sound-Muskoka), announced $1.82 million for First Nation small business development in Northwestern Ontario through the Nishnawbe Aski Development Fund.

The not-for-profit organization will use $960,000 of the funds to offer business support services and access to capital for small and medium-sized businesses over the next three years. Another $400,000 will provide repayable loans, equity and loan guarantees.

The remainder of the money will help Bingwi Neyaashi Anishinaabek First Nation build a saw and pellet mill.

“It’s a little bit tougher to raise money, raise capital, for small to medium-sized businesses in rural areas, in northern areas than it would be in some our larger urban centres,” said Clement.

“The whole idea is to level the playing field a little bit, get that access to capital for these kinds of job-creating projects here in Northwestern Ontario and throughout Northern Ontario.”

Clement said it’s good to see entrepreneurs popping up in numerous First Nations and the federal government wants to be supportive.

Not only will the funding help independent small businesses, but also ones that contribute to some bigger ticket industries like forestry and mining, said MP Greg Rickford (Con., Kenora).

“That’s the endgame,” he said. “Anything we can do to create jobs, we recognize that we continue to work with First Nations communities, particularly the isolated remote ones to improve their fortunes in areas of job creation and that’s still a key challenge, but it’s one we’re working on.”

The money going to Bingwi Neyaashi Anishinaabek First Nation will provide a foundation for that community, said senior advisor of economic development J.P. Gladu.

“Quite literally, the site development is going to be the foundation for our projected saw mill and pellet mill in the near future as well as expansion,” he said. “It’s also a foundation for our community to allow us to build an economy to bring our First Nation members back so they can feel they are contributing to an economy and to society and contribute to our community in the North.”

“It’s a solid foundation,” Gladu added. “It’s a seed we’re planting today and it’ll grow into the future.”

The mill will also see economic spin-off as Gladu expects other small businesses to spring up and create more jobs.

He feels the mill will not only have a large impact on the region, but will also showcase Northern Ontario as a good place to do business.

The Nishnawbe Aski Development Fund has handed out $25 million in loans to more than 500 small to mid-sized businesses in Aboriginal communities across Northern Ontario, creating more than 2,000 jobs in the process.