Challenges and successes with economic and business development models at the local level: The Quatsino experience By Nadine Pinnell B.Sc. (Hons., Ecology), University of British Columbia, 2001 Research Project Submitted in Partial Fulfilment of the Requirements for the Degree of Master of Resource Management in the School of Resource and Environmental Management Faculty of Environment Project No. 534 © Nadine Pinnell 2012 Simon Fraser University Summer 2012 All rights reserved. However, in accordance with the Copyright Act of Canada, this work may be reproduced, without authorization, under the conditions for "Fair Dealing." Therefore, limited reproduction of this work for the purposes of private study, research, criticism, review and news reporting is likely to be in accordance with the law, particularly if cited appropriately. !""#$%&'( Name: Nadine Pinnell Degree: Master of Resource Management (Planning) Project No: 534 Title of Project: Challenges and successes with economic and business development models at the local level: The Quatsino experience Examining Committee: Chair: Bronwyn MacDonald MRM Candidate, School of Resource and Environmental Management, Simon Fraser University ______________________________________________ Dr. Evelyn Pinkerton Senior Supervisor Associate Professor, School of Resource and Environmental Management, Simon Fraser University ______________________________________________ Michael Lewis Supervisor Managing Director Centre for Community Enterprise Date Defended / Approved: May 18, 2012 ii !)*+#&,+( In this case study, I examine the economic development and business development experiences of the Quatsino First Nation and make recommendations for future economic development and considerations for the development and sustainability of new businesses, including a proposed shellfish aquaculture social enterprise. I conducted semi-structured interviews with Quatsino First Nation leaders, community members and staff focused on community experiences with an economic development corporation and First Nation owned businesses, joint ventures, individually owned businesses and co-operatives. Recommendations for future economic development in Quatsino include community planning processes around long-term economic development goals and human resource development, continued use of the development corporation to separate politics and business, clear definition of its mandate and ongoing entrepreneurial capacity development. Some factors that contribute to the successful development and sustainability of new businesses in Quatsino are leadership, entrepreneurial capacity, community support, access to business development resources and individual training and commitment. Keywords: aboriginal economic development; community economic development; business development; First Nation; shellfish aquaculture; social enterprise iii !,-.$/'012030.+*( I need to thank everyone who contributed to this project and provided me with assistance, support and encouragement in various forms. This project would not exist without the Quatsino First Nation leaders, community members, staff and economic development corporation board members who generously took the time to speak with me regarding their experiences. I would also like to thank the Quatsino First Nation, who allowed this project to go ahead and helped me organize interviews when I was in Quatsino. My supervisors, Dr Evelyn Pinkerton and Mike Lewis, provided me with valuable guidance and insight throughout this process, as did other members of the Golden Mussel team, Kenn Renaud and Dr Douglas Gordon. The BC Alberta Alliance for Research on the Social Economic Economy and the Social Sciences and Humanities Research Council provided financial support while the Resource and Environmental Management Program at Simon Fraser University was a great source of intellectual stimulation and support. I am incredibly grateful for all of the friends and family members who have supported and encouraged me throughout this process, particularly my parents, who never stopped believing I could do it. iv !4&)'0($5(6$.+0.+*( Approval .......................................................................................................................... ii! Abstract .......................................................................................................................... iii! Acknowledgements....................................................................................................... iv! Table of Contents ........................................................................................................... v! List of Tables................................................................................................................ viii! List of Figures................................................................................................................ ix! 1! Introduction............................................................................................................... 1! 1.1! Aboriginal economic development .................................................................. 1! 1.1.1! Approaches and strategies for economic development................................ 2! 1.1.2! Aboriginal economic development management structures ......................... 3! 1.1.3! Types of economic development corporations ............................................. 3! 1.1.4! Types of business ownership structures....................................................... 4! 1.2! Context for economic development in aboriginal communities in Canada. 6! 1.2.1! The Indian Act............................................................................................... 7! 1.3! Aboriginal rights and title and economic development opportunities....... 11! 1.3.1! Landmark aboriginal rights and title decisions............................................ 11! 1.3.2! Aboriginal title in British Columbia and economic development ................. 12! 1.4! Shifting options for coastal British Columbia First Nations ....................... 14! 1.4.1! Traditional sectors....................................................................................... 15! 1.4.2! New and emerging opportunities ................................................................ 15! 1.5! British Columbia First Nations and shellfish aquaculture........................... 16! 1.6! Golden Mussel Project .................................................................................... 18! 1.7! Quatsino First Nation ...................................................................................... 22! 1.8! Research goal and scope ............................................................................... 23! 2! Methods ................................................................................................................... 24! 2.1! Project development ....................................................................................... 24! 2.2! Case study approach ...................................................................................... 24! 2.2.1! Entrée into the community .......................................................................... 24! v 2.2.2! Identifying interviewees............................................................................... 25! 2.2.3! Interview techniques ................................................................................... 26! 2.3! Methods for analysis ....................................................................................... 26! 2.4! Study limitations.............................................................................................. 27! 2.4.1! Interview technique..................................................................................... 27! 2.4.2! Range of representation ............................................................................. 28! 2.4.3! Effects of researcher position in and knowledge of the community............ 28! 3! Economic and Business Development Experiences .......................................... 30! 3.1! Quatsino First Nation Economic Development Corporation....................... 30! 3.1.1! QFNEDC structure...................................................................................... 31! 3.1.2! Transferring economic development functions ........................................... 31! 3.1.3! Perceptions of the QFNEDC....................................................................... 32! 3.1.4! Future directions ......................................................................................... 34! 3.2! Experiences with different business structures........................................... 34! 3.2.1! First Nation owned businesses................................................................... 34! 3.2.2! Joint ventures.............................................................................................. 37! 3.2.3! Individually owned businesses.................................................................... 37! 3.2.4! Co-operatives.............................................................................................. 38! 3.3! Perceptions of ownership models ................................................................. 39! 3.3.1! Strengths of First Nation owned businesses............................................... 39! 3.3.2! Challenges of First Nation owned businesses............................................ 40! 3.3.3! Strengths of joint ventures .........................................................................