The importance of Indigenous educational outcomes to small enterprise development within remote Indigenous communities of Northern Australia

This paper assesses the extent to which the education system in Australia has produced outcomes likely to facilitate the development of an entrepreneurial culture for Indigenous Australians. Data from the 1991 and 1996 censuses indicate that Indigenous Australians are more likely than Non-Indigenous to leave school at an early age. Their level of attendance at post-secondary educational institutions is also substantially lower. Young Indigenous people are less likely to hold a qualification than their Non-Indigenous counterparts. Such outcomes are supported by field research in remote communities in the Northern Territory, which indicates that the skills required to manage and operate a small business are extremely scarce. This situation, and the poor educational outcomes that contribute to it, is one of the most important constraints upon the development of Indigenous owned and operated small businesses in remote areas, with important implications for economic and human development. The paper suggests a number of reasons why this situation exists. It also proposes a number of policy changes designed to increase the number of Indigenous small business owner-managers, by enhancing the educational outcomes of Indigenous young people.