Despite the fact that the government set the strategy and made the first step to implement it, there are still several challenges for the business to face. For example, access to working capital is the first issue for businesses, and this happens for several reasons.
- Businesses don't cooperate with traditional banks.
- They often face institutional bias due to high risks.
- The absence of collateral prevents them from getting loans and operating credits.
The next issue is related to the remoteness of the communities. The fact that they are located in Northern Ontario, Nunavut, Labrador, or the Northwest Territories creates several problems.
- Logistical issues. The problem with shipping goods becomes actual if no roads, airports, or highways are near the core points.
- Connection troubles. Whether there is no stable internet connection in the region, contacting customers and financial institutions becomes complicated.
- Access to resources. This is not only about material support but also qualified labor, local suppliers, and financial support from a local business. Once a company has a light banking presence in rural and remote areas, financing becomes limited.
Having fewer financial resources leads to a smaller asset base. Unfortunately, this problem remains for indigenous-owned companies, and they need help with several issues while trying to raise capital and sustain the business.