Economics Assignment: Article Review On Ongoing Growth Of Indigenous Australians In Business

Question

Task: Write a 1000-word report on economics assignment summarizing the article "Ongoing Growth in the Number of Indigenous Australians in Business” written by S Shirodkar, B Hunter And D Foley.

Answer

Introduction
Indigenous enterprises are critical to indigenous communities' economic self-determination. The current economics assignment provides a greater understanding of the Australian sector and portraying its progress. With the recent increase in awareness of indigenous enterprises, there has been a lot of interest in determining the size of the sector. Understanding the fundamental characteristics of such businesses, as well as the structure of their industries, is critical information for policymakers. This paper focuses on the development of a summary of the selected article which is “ongoing growth in the number of indigenous Australians in business”. For this purpose, various aspects of the selected paper has been analysed and discussed in the assignment.

Summary
Despite the challenging climate, the number of Aboriginal people working for themselves has expanded dramatically in recent decades. Recent attempts to highlight indigenous peoples' commercial accomplishments have boosted the public visibility of fast-growing sectors. Initiatives like the Indigenous Procurement Policy (IPP), which set the Australian Government's sectoral procurement targets in 2015, have fuelled recent growth in this industry (Shirodkar, Hunter and Foley, 2018). An individual can more correctly estimate the number of indigenous peoples using the ACLD release from 2006 to 2016. In the last three periods, the owner-manager has delivered. Despite the increase of indigenous Australians, the proportion of indigenous business owners in the population over the age of 15 is much lower than that of non-indigenous Australians.

There are, however, some encouraging indicators. Over the age of 15, the proportion of indigenous owners-managers in the population will rise from 3.2 percent in 2006 to 3.4 percent in 2016. In fact, from 10.0 percent in 2006 to 9.2 percent in 2011 and 8.6 percent in 2016, the rate has declined. The fall in non-indigenous business ownership may be a reflection of Australia's economic woes after the global financial crisis of 2008. The share of indigenous owners and managers has increased significantly, indicating that indigenous peoples and managers are making economic gains despite the relatively sluggish growth environment of the previous decade.

The overall drop of non-indigenous business owners could be due to challenges that have plagued the Australian economy since the global financial crisis of 2008. In light of this, the share of managers who are indigenous owners has risen dramatically, demonstrating that managers are making economic progress despite the relatively sluggish growth environment of the previous decade. The bulk of indigenous owners and managers are concentrated on Australia's east coast, particularly in Sydney and surrounding regions of New South Wales. Many also dwell in Brisbane, the remainder of Queensland, and Melbourne. With the exception of Darwin, where the number of indigenous enterprises dropped between 2011 and 2016, the growth of indigenous owners and managers in capital has been spectacular over the last decade, at double digits (Shirodkar, Hunter and Foley, 2018). Part of the reason for the recent lack of increase in indigenous owners and managers in Western Australia, as well as the recent large fall in the Northern Territory, is the decline in business prospects following the end of the mining boom. Indigenous owners and managers in Queensland, on the other hand, have not witnessed a similar drop in numbers. As a result, a wider range of business activities are taking place across the state. The substantial changes in the Northern Territory cannot be explained entirely by mining.

The prolonged impact of the Australian government's intervention in the Northern Territory may have had an impact on the region's economic prospects. This is a problem that needs to be looked into more. The ABS Area Map shows the locations of indigenous owners and managers in greater detail and as a percentage of indigenous individuals of working age in the area. The biggest share of indigenous owners and managers can be found in eastern Queensland, New South Wales, Victoria, and Tasmania, where labour and product markets are the most established. The rest of the country has a lower proportion of indigenous peoples, with many of the rural Western Australia, South Australia, and Northern Territories having the lowest proportion of indigenous peoples. In 2011, the number of owner-managers fell the highest in distant locations, where there were few firms. The Northern Territory, as well as the most isolated parts of Western Australia and the Northern Territory, appear to have been the hardest hit (Shirodkar, Hunter and Foley, 2018). Overall, variations in the number of indigenous owners and managers support the narrative that market access in distant areas, where roughly 20% of indigenous people dwell, is underdeveloped. The situation appears to be deteriorating.

Men account for 67% of indigenous owners and managers, while women account for 33%. One of the goals of the Indigenous Enterprises Sector Strategy, according to the Australian government, is to improve the proportion of indigenous women who work in the economy. Because the number of indigenous women (and males) of working age is still very low, this is a worthwhile goal. The population profile of indigenous owners and managers is younger than that of non-indigenous owners and managers, according to the census. Indigenous entrepreneurs are between the ages of 40 and 44, while non-indigenous entrepreneurs are between the ages of 45 and 49 (Shirodkar, Hunter and Foley, 2018). About 5% of indigenous owners and managers are between the ages of 20 and 24, but just 2% of non-indigenous owners and managers are between the ages of 20 and 24. A three-percentage-point disparity exists in the 25-29 year old age group. Conversely, older Australians, particularly those over the age of 55, have a disproportionately high number of children.

Conclusion
From the above discussion on economics assignment, it can be stated that Eastern Queensland, New South Wales, Victoria, and Tasmania, which have the most established labour and product markets, have the highest proportion of indigenous owners and managers. The majority of indigenous owners and managers live on Australia's east coast, particularly in Sydney and the adjacent New South Wales districts. Many people live in Brisbane and the rest of Queensland, as well as Melbourne. The proportion of indigenous owners-managers in the population over the age of 15 will increase from 3.2 percent in 2006 to 3.4 percent in 2016.