A 35-YEAR-OLD US model for developing African-American and Native American businesses is being considered by the Federal Government as an answer to the economic disadvantage of indigenous Australians.
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The US National Minority Supplier Development Council accredits minority-owned businesses and links them with corporations such as Cisco, IBM and GlaxoSmithKline.
In 2006, the council's member companies bought more than $US100 billion ($104 billion) of goods and services from businesses owned by African Americans, Native Americans and other minorities.
The concept has spread to Canada, where in four years it has delivered $C200 million ($206 million) worth of business to minorities, and to Britain, where it is being used to foster social inclusion.
The US council is now helping Brazil, China and South Africa set up similar systems, but it is particularly interested in indigenous Australia.
In September, a US delegation, including the council's president, Harriet Michel, will visit Australia on a self-funded trip to address the parliamentary standing committee on Aboriginal and Torres Strait Islander affairs, and to meet the Indigenous Affairs Minister, Jenny Macklin, and representatives from other levels of government.
"Such is the level of commitment we have towards the Australian initiative, last year I approved our Global Link division to begin directing resources towards supporting the Australian effort," Ms Michel wrote in a submission to the committee, which the Herald has obtained.
She has formed a committee with representatives of Cisco, IBM, GlaxoSmithKline, Motorola and Dell to assist indigenous Australians to create a similar system.
Investigating the feasibility of the concept in Australia is one of four terms of reference of a parliamentary inquiry into indigenous business development announced by Ms Macklin and the Minister for Small Business, Craig Emerson, in June.
The concept, known as a "supplier diversity model", is based on the belief that partnerships with corporate Australia - not sponsorships or charity - are the way to build indigenous businesses and lift the living standards and health of Aborigines. And unike other business development strategies, the concept does not rely on pro bono work by corporate members.
Michael McLeod, an indigenous entrepreneur, said he has spent three years bringing the concept to Australia with his business partner, Dug Russell and others.
Their telecommunications company, Message Stick Communications, achieved sales of $2.4 million in the last financial year, its fourth year of operation.
Its chairman is the indigenous former rugby league player David Liddiard, who has won a Churchill Fellowship to study supplier diversity models overseas.
Mr McLeod said the Australian proposal would require an investment of "a few million dollars" from government for a three-year pilot involving 10 indigenous businesses, and would pay for itself with members' fees beyond that.
"This is ground-breaking stuff. This is the future for indigenous Australians, for mine. Everything else is relevant, but in the mid- to long-term this is the key," Mr McLeod said.
Mr McLeod and Mr Russell presented their submission to a public hearing in Sydney yesterday.
Ms Macklin said she had had a productive meeting with Message Stick and was looking forward to reviewing its submission to the inquiry. She said she was keen to meet the US Minority Business Council in September if possible.
Yesterday's forum also heard from the federal president of the ALP, Warren Mundine, and the human rights lawyer George Newhouse, who have set up an Australian Indigenous Chamber of Commerce.
