Untapped Potential: Best Business to Start in Nunavut

Starting a business in Nunavut offers unique opportunities and challenges shaped by its cultural, economic, and geographical landscape. With a population of about 39,000 across 25 communities, Nunavut is Canada’s newest and least densely populated territory. Despite its remote location and harsh climate, it holds great potential for entrepreneurs.

Did you know that Nunavut’s mining sector has attracted over $9 billion in investments in the last decade and is projected to contribute $1.4 billion in 2024?

Whether you’re a local investing in your community or an entrepreneur exploring new opportunities, this guide will provide key insights on market trends, resources, and strategies to help you succeed in this fascinating territory.

1. Understanding Nunavut’s Market

Nunavut’s unique market presents both challenges and opportunities for entrepreneurs. The territory’s vast landscape, cultural diversity, and growing economy create a distinctive business environment.

Economic Landscape

Nunavut’s economy is characterized by a mix of traditional and modern sectors. Mining and resource extraction play a significant role, alongside government services and tourism. The territory’s GDP has been growing steadily in recent years. You’ll find that the public sector is a major employer and economic driver.

This creates opportunities for businesses that can support government operations or provide services to public employees. Tourism is an emerging sector with potential for growth. Adventure tourism, cultural experiences, and Northern Lights viewing are attracting visitors from around the world.

Consumer Demographics

Nunavut has a young and growing population. The median age is significantly lower than the Canadian average, which influences consumer preferences and needs. You’ll notice a strong emphasis on Inuit culture and traditions. This affects purchasing decisions and business practices.

Many communities are small and isolated, which impacts consumer behavior and supply chains. Local stores often play a crucial role in these areas. Income levels vary widely across the territory. Some regions have high-income households due to resource sector jobs, while others face economic challenges.

Local Resources

Nunavut is rich in natural resources. Mining for gold, iron, and diamonds is a key industry. You might find opportunities in supporting these operations or in related services. Traditional Inuit knowledge and skills are valuable resources. Businesses that incorporate or support these skills can find success in the market.

The territory’s unique wildlife and landscapes offer potential for eco-tourism and sustainable resource-based businesses. Arctic research and climate change studies create demand for specialized services and support industries.

Business Regulations

Starting a business in Nunavut requires navigating specific regulations. You’ll need to register your business with the territorial government and obtain the necessary licenses. Environmental regulations are strict due to the fragile Arctic ecosystem. Ensure your business plan accounts for these requirements.

The Nunavut Business Credit Corporation offers financial support and advice for new businesses. They can help you understand and comply with local regulations. Labor laws in Nunavut emphasize fair employment practices and prioritize hiring local Inuit workers. Familiarize yourself with these requirements when planning your staffing strategy.

2. Major Industries in Nunavut

Nunavut’s economy is diverse and dynamic, with several key sectors driving growth and employment. These industries capitalize on the territory’s unique resources and cultural heritage, contributing significantly to its economic landscape.

Mining Sector

The mining sector is a cornerstone of Nunavut’s economy. Rich mineral deposits attract substantial investments, creating jobs and stimulating economic activity. Gold, iron ore, and diamonds are among the primary resources extracted.

Mining industry in Nunavut

Major resource developers, such as mining companies, play a crucial role in the territory’s development. They often partner with local communities, providing employment opportunities and supporting infrastructure projects.

If you’re considering entering this industry, be aware of the environmental regulations and the need for sustainable practices. The sector offers various business opportunities, from equipment supply to environmental consulting.

Fishing Industry

Nunavut’s vast coastal areas support a thriving fishing industry. Commercial fishing focuses on species like Arctic char, turbot, and shrimp. This sector provides significant employment and export revenue for the territory.

You’ll find opportunities in fish processing, equipment supply, and transportation services. The industry is carefully managed to ensure sustainability and protect traditional Inuit fishing rights.

Consider exploring niche markets for Nunavut’s unique seafood products. There’s potential for value-added processing and developing specialty products for export markets.

Tourism and Its Economic Impact

Tourism is a growing industry in Nunavut, attracting visitors with its pristine wilderness, Inuit culture, and unique Arctic experiences. Adventure tourism, cultural tours, and wildlife watching are popular activities.

You can tap into this sector by offering guided tours, accommodation services, or authentic Inuit cultural experiences. The tourism industry also supports local artisans and performers, creating a ripple effect in the economy.

Keep in mind the seasonal nature of tourism in Nunavut and the need for careful planning to protect the fragile Arctic environment.

Seal Harvesting and Trade

Seal harvesting is an important traditional and commercial activity in Nunavut. It provides income for many Inuit families and supports the production of sealskin products.

If you’re interested in this industry, consider the potential for developing sustainable, ethical seal products. There are opportunities in processing, product design, and marketing to both local and international markets. Be aware of the regulations surrounding seal harvesting and the importance of respecting traditional Inuit practices.

Arts and Crafts Production

Nunavut’s arts and crafts industry is renowned worldwide for its unique Inuit creations. Sculptures, prints, textiles, and jewelry are sought-after by collectors and tourists alike.

You can support this sector by opening an art gallery, organizing workshops, or developing online platforms to sell Inuit art globally. There’s also potential for collaborations between artists and contemporary designers.

Remember to respect intellectual property rights and ensure fair compensation for artists.

Infrastructure and Transportation

Given Nunavut’s vast territory and challenging geography, infrastructure and transportation are crucial industries. They support all other economic activities in the region.

You’ll find opportunities in construction, logistics, and maintenance services. The government often invests in infrastructure projects, creating demand for various services.

Consider specialized transportation solutions for the Arctic environment, such as ice road construction or maintenance of remote airstrips. There’s also potential for innovative technologies to improve connectivity in isolated communities.

3. Best Business to Start in Nunavut

Nunavut offers unique opportunities for entrepreneurs looking to tap into its rich natural resources and cultural heritage. The territory’s vast landscapes and Arctic environment provide a backdrop for innovative business ventures that cater to both local needs and global markets.

Geological Survey Services

Geological survey services are in high demand in Nunavut due to its mineral-rich terrain. You can start a business offering geological mapping, mineral exploration, and environmental assessments. Your services would be valuable to mining companies and government agencies.

Invest in advanced surveying equipment and build a team of experienced geologists. Develop expertise in Arctic geology and stay updated on environmental regulations. Offer specialized services like permafrost analysis and ice-core sampling.

Consider partnering with local Inuit communities to gain valuable insights into the land. This collaboration can also help you secure contracts and build strong relationships in the region.

Seafood Processing Plant

Nunavut’s waters are teeming with Arctic char, turbot, and shrimp. Starting a seafood processing plant can be a lucrative venture. You’ll need to invest in freezing and packaging equipment to ensure product quality.

Partner with local fishermen to secure a steady supply of fresh catch. Develop relationships with restaurants, hotels, and distributors across Canada and internationally. Focus on sustainable fishing practices to appeal to environmentally conscious consumers.

Consider offering value-added products like smoked fish or ready-to-cook meals. Implement strict quality control measures to meet export standards. Train local workers in food processing techniques to create employment opportunities.

Fish Export Business

A fish export business can capitalize on Nunavut’s abundant marine resources. Focus on high-value species like Arctic char and turbot. You’ll need to establish a network of reliable fishermen and invest in cold storage facilities.

Obtain necessary export licenses and certifications. Build relationships with international seafood buyers and distributors. Develop a strong brand that emphasizes the unique qualities of Arctic fish.

Implement a robust logistics system to ensure timely delivery of fresh and frozen products. Consider air freight options for premium markets. Stay informed about trade regulations and tariffs in target export countries.

Cultural Heritage Tours

Nunavut’s rich Inuit culture offers a unique opportunity for cultural heritage tours. Design immersive experiences that showcase traditional Inuit practices, art, and way of life. Collaborate with local elders and artisans to provide authentic experiences.

Offer a range of tours, from day trips to multi-day expeditions. Include activities like igloo building, dog sledding, and traditional hunting techniques. Ensure your tours are respectful and contribute positively to local communities.

Invest in marketing to attract both domestic and international tourists. Develop partnerships with travel agencies and cruise lines. Train local guides to provide informative and engaging tours.

Arctic Cruise Packages

Arctic cruise packages are gaining popularity among adventure seekers. Start a business that offers unique cruise experiences in Nunavut’s pristine waters. Focus on small-scale, eco-friendly cruises that minimize environmental impact.

Invest in a suitable vessel or partner with existing cruise operators. Design itineraries that showcase Nunavut’s stunning landscapes, wildlife, and Inuit culture. Offer activities like whale watching, iceberg viewing, and visits to remote communities.

Ensure your cruises comply with all safety regulations and environmental standards. Hire experienced crew members familiar with Arctic conditions. Develop partnerships with local communities to provide authentic cultural experiences.

Seal Product Manufacturing

Seal product manufacturing is a traditional industry with modern potential. Start a business producing high-quality seal skin products like clothing, accessories, and home decor. Source ethically harvested seal skins from local hunters.

Invest in equipment for tanning, cutting, and sewing. Develop a range of products that appeal to both local and international markets. Focus on showcasing the durability and unique qualities of seal skin.

Train local artisans in modern manufacturing techniques while preserving traditional skills. Develop a strong brand that emphasizes sustainability and cultural significance. Navigate export regulations carefully, especially for markets with restrictions on seal products.

Seal Oil Production

Seal oil production offers a niche market opportunity. Start a business that processes and packages seal oil for health supplements and cosmetics. Ensure your production methods meet strict health and safety standards.

Invest in processing equipment that preserves the oil’s nutritional properties. Develop relationships with local seal hunters to secure a steady supply. Create a range of products, from capsules to topical applications.

Educate consumers about the health benefits of seal oil. Develop marketing strategies that highlight its unique omega-3 profile. Navigate regulatory challenges in different markets, especially those with restrictions on seal products.

Seal Craft Workshops

Seal craft workshops can preserve traditional skills while creating economic opportunities. Start a business offering workshops on seal skin crafting. Teach techniques for creating clothing, accessories, and artwork.

Partner with experienced Inuit artisans to lead workshops. Offer both short-term classes for tourists and longer programs for locals. Provide all necessary materials and tools for participants.

Develop a curriculum that balances traditional methods with modern design trends. Create a welcoming studio space that fosters creativity and cultural exchange. Consider offering online workshops to reach a wider audience.

Inuit Art Gallery

An Inuit art gallery can showcase the rich artistic heritage of Nunavut. Start a business that represents local artists and sells authentic Inuit art. Focus on a range of mediums, including sculptures, prints, and textiles.

Build relationships with talented artists across Nunavut. Invest in a physical gallery space and develop an online presence for global sales. Educate customers about the cultural significance and techniques behind each piece.

Organize regular exhibitions and events to promote Inuit art. Develop partnerships with museums and collectors. Ensure fair compensation for artists and transparency in pricing.

Online Craft Marketplace

An online craft marketplace can connect Nunavut artisans with global buyers. Start a platform that showcases and sells a wide range of Inuit crafts. Focus on user-friendly design and secure payment systems.

Develop a vetting process to ensure authenticity and quality. Provide support for artisans in photographing and describing their products. Implement a fair pricing structure that benefits both artisans and buyers.

Invest in digital marketing to reach potential customers worldwide. Develop features like artist profiles and cultural context for each item. Consider offering virtual workshops or live demonstrations to engage customers.

Logistics and Freight Services

Logistics and freight services are crucial in Nunavut’s remote communities. Start a business that provides reliable and efficient transportation for goods and supplies. Focus on sustainability and minimizing environmental impact.

Invest in suitable transportation vehicles, such as snowmobiles or boats. Develop relationships with local businesses to secure contracts for delivery services. Offer competitive rates and ensure timely deliveries.

Consider expanding into other logistics services, such as storage and inventory management. Invest in technology to track shipments and improve efficiency. Prioritize safety regulations and proper handling of all cargo.

4. Starting a Small Business

Launching a business in Nunavut requires careful planning and consideration of the unique challenges and opportunities in Canada’s northernmost territory. You’ll need to focus on creating a solid business plan, securing funding, choosing the right location, and building a skilled team.

Crafting a Business Plan

Your business plan is the foundation of your venture. Start by defining your business concept and target market. Research the local business landscape to identify gaps you can fill. Outline your products or services, pricing strategy, and marketing approach.

Include financial projections for the first few years of operation. Be realistic about startup costs and potential revenue streams. Consider seeking help from local business development organizations to refine your plan.

Remember to account for Nunavut’s unique economic and geographic factors in your strategy. Your plan should demonstrate a clear understanding of the territory’s business environment and your ability to thrive within it.

Funding and Financial Aid

Securing funding is often a major hurdle for new businesses. Explore various financing options available to you. The Government of Nunavut offers several programs to support local entrepreneurs.

Look into grants, loans, and other financial assistance specifically designed for small businesses in the territory. Consider applying for federal programs that support northern development.

Don’t overlook traditional funding sources like banks and credit unions. Prepare a compelling pitch and have your business plan ready to present to potential investors or lenders.

Be prepared to demonstrate how your business will contribute to the local economy and community. This can be a key factor in securing government support and attracting investors interested in Nunavut’s development.

Location and Infrastructure

Choosing the right location is crucial for your business success. Consider factors like accessibility, utilities, and proximity to your target market. In Nunavut’s challenging climate, ensure your chosen site can support your operations year-round. Research available commercial spaces in communities across the territory. Consider registering as a Nunavut Business to gain potential advantages in leasing or purchasing property.

Searching for the right location to start a business in Nunavut

Infrastructure can be limited in some areas, so plan accordingly. You may need to invest in backup power systems or specialized equipment to operate in remote locations. Factor these costs into your business plan and startup budget. Think creatively about how to overcome infrastructure challenges. Could your business model incorporate online services or mobile operations to reach customers across Nunavut’s vast territory?

Recruiting and Training Staff

Building a skilled and reliable workforce is essential for your business. Tap into local talent pools by connecting with community organizations and educational institutions. Consider offering apprenticeships or training programs to develop the skills you need. Be prepared to invest in employee development. The unique environment of Nunavut may require specialized training for your staff. Look into government programs that support workforce development in the territory.

Create a positive work environment that respects and incorporates Inuit culture and values. This can help you attract and retain local talent while building strong community connections. Consider offering competitive salaries and benefits to attract skilled workers. In remote locations, you may need to provide additional incentives like housing assistance or travel allowances to build your team.

5. Market Entry Strategies

Entering the Nunavut market requires careful planning and a deep understanding of the local business landscape. You’ll need to identify your niche, analyze the competition, develop a strong brand, and focus on building lasting customer relationships.

Identifying a Niche

To succeed in Nunavut’s unique market, you must find an underserved area that aligns with local needs. Research the community’s specific requirements and cultural preferences. Consider factors like the harsh climate and remote location when choosing your niche.

Look for gaps in existing services or products. You might focus on sustainable energy solutions, specialized winter gear, or culturally relevant goods.

Don’t overlook traditional industries like fishing or arts and crafts, which hold significant importance in Nunavut. By tailoring your offerings to meet local demands, you’ll position your business for success.

Competitive Analysis

Before launching your venture, thoroughly assess the existing competition in Nunavut. Identify both direct and indirect competitors operating in your chosen niche. Evaluate their strengths and weaknesses. What do they offer? How do they price their products or services? What marketing strategies do they use?

Use this information to differentiate your business. Develop a unique value proposition that sets you apart. Consider factors like quality, pricing, or customer service as potential areas for differentiation. Remember, in a small market like Nunavut, personal relationships often play a crucial role. Network with local business leaders to gain insights and potentially form strategic partnerships.

Brand and Marketing

Building a strong brand is essential for standing out in Nunavut’s close-knit business community. Your brand should reflect local values and resonate with the target audience.

Develop a compelling brand story that highlights your commitment to the region. Use local imagery and language in your marketing materials when appropriate.

Choose marketing channels that are effective in reaching Nunavut’s population. Local radio, community events, and word-of-mouth can be powerful tools. Don’t overlook digital marketing, but be aware of potential connectivity issues in remote areas. Consider partnering with local influencers or respected community members to boost your brand’s credibility and reach.

Customer Relations

In Nunavut’s small communities, building strong customer relationships is crucial for long-term success. Focus on providing excellent customer service and creating positive experiences. Train your staff to understand and respect local cultural norms. Learn basic Inuktitut phrases to show your commitment to the community.

Implement a loyalty program to encourage repeat business. Consider offering personalized services or products to cater to individual needs. Be responsive to customer feedback and adapt your offerings accordingly. In a tight-knit community, word travels fast – make sure it’s positive. By prioritizing customer satisfaction, you’ll build a loyal customer base and establish your business as a valued part of the community.

6. Growing Your Business

Expanding your venture in Nunavut requires strategic planning, collaboration, and community involvement. These elements are crucial for sustainable growth in the unique business landscape of the territory.

Expansion Strategies

To grow your business in Nunavut, consider diversifying your products or services. This approach can help you tap into new markets and increase your customer base. Develop a comprehensive business plan that outlines your expansion goals and strategies. It’s an essential tool for securing financing and guiding your growth.

Look into e-commerce opportunities to reach customers beyond your local area. This can be particularly effective in Nunavut’s vast geography. Consider opening additional locations in other Nunavut communities if your business model allows. This can help you serve a wider population and increase your market share.

Partnerships and Collaboration

Forming strategic partnerships can be a powerful way to grow your business in Nunavut. Look for complementary businesses to collaborate with, creating mutually beneficial relationships. Join local business associations to network with other entrepreneurs and stay informed about industry trends and opportunities. These connections can lead to valuable partnerships and collaborations.

Consider partnering with larger companies or government agencies to secure contracts or expand your service offerings. This can provide stability and growth opportunities for your business. Explore joint marketing initiatives with other local businesses to increase your visibility and reach a wider audience. This can be especially effective in Nunavut’s close-knit communities.

Involving the Community

Engage with the local community to build strong relationships and foster loyalty. Sponsor local events or sports teams to increase your visibility and show your commitment to the community. Hire local talent and provide training opportunities. This not only helps your business grow but also contributes to the local economy and workforce development.

Consider offering internships or apprenticeships to young people in the community. This can help you develop a skilled workforce while giving back to the community.

Participate in community consultations and decision-making processes. Your involvement can help shape policies that support business growth in Nunavut. Support local suppliers and service providers when possible. This strengthens the local economy and can lead to valuable business relationships.

7. Legal and Tax Implications

Starting a business in Nunavut involves navigating specific legal requirements and tax obligations. Understanding these aspects is crucial for ensuring your business operates legitimately and efficiently in the territory.

Incorporation and Licensing

To establish your business in Nunavut, you’ll need to comply with legal requirements for operating in the territory. This includes choosing a business structure and registering your company.

For incorporation, you can opt for a federal or territorial corporation. Territorial incorporation may be more suitable if you plan to operate primarily within Nunavut.

You’ll need to obtain the necessary licenses and permits specific to your industry. These may include a general business license, professional certifications, or sector-specific permits. Remember to register for a Nunavut Business Number, which is essential for tax purposes and government interactions.

Understanding Taxes

Nunavut’s tax system has some unique aspects you should be aware of. As a business owner, you’ll be responsible for various taxes:

  • Territorial corporate income tax
  • Federal corporate income tax
  • Goods and Services Tax (GST)
  • Payroll taxes if you have employees

You may be eligible for tax credits and incentives designed to support businesses in Nunavut. These can include northern resident deductions and investment tax credits.

It’s advisable to consult with a local tax professional who understands Nunavut’s specific tax landscape to ensure compliance and maximize benefits.

Compliance with Local Laws

Adhering to Nunavut’s local laws is crucial for your business’s success. Familiarize yourself with the territory’s labor standards, which cover areas like minimum wage, working hours, and employee rights. Environmental regulations are particularly important in Nunavut. Your business may need to comply with specific environmental protection measures, especially if you’re in resource extraction or tourism sectors.

Be aware of Nunavut’s unique land claim agreements and their impact on business operations. These agreements may affect land use, resource management, and employment practices. Consider joining local business associations like the Baffin Regional Chamber of Commerce for support in navigating local laws and regulations.

Frequently Asked Questions

Starting a business in Nunavut presents unique challenges and opportunities. The Arctic landscape, small population, and rich cultural heritage shape the entrepreneurial environment in this territory.

Nunavut’s Arctic location offers distinctive business prospects. You could explore eco-tourism ventures that showcase the stunning northern lights and pristine wilderness.

Cultural tourism is another niche, allowing you to share Inuit traditions and art with visitors. Sustainable fishing and hunting guide services can also thrive in this region.


In Nunavut’s small communities, home-based businesses can be ideal. You might consider starting an online craft store featuring local Inuit art and handicrafts.

Providing business support services like bookkeeping or virtual assistance can be profitable with minimal startup costs. Offering language translation services, particularly between Inuktitut and English, is another low-investment option.


Businesses that address specific community needs tend to thrive in Nunavut. You could open a specialty grocery store offering fresh produce and healthy food options.

A local delivery service connecting remote communities could be invaluable. Starting a daycare center or elder care service would also fill crucial gaps in many Nunavut towns.


The renewable energy sector holds great potential in Nunavut. You could start a business installing and maintaining solar panels or wind turbines.

The territory’s natural resources also present opportunities for sustainable mining or fishing. Technology services, particularly those improving internet connectivity, are in high demand across Nunavut.


Nunavut is rich in natural resources you can leverage for business. The territory’s vast mineral deposits could support a mining equipment rental or repair service.

The abundant wildlife could be the foundation for a sustainable food processing business. Nunavut’s expansive coastline also offers opportunities in the fishing industry or marine tourism.


To capitalize on Nunavut’s growing tourism, you could start a tour guide company specializing in Arctic adventures. Offering unique accommodations like ice hotels or traditional Inuit lodges can attract tourists seeking authentic experiences.

Creating a travel planning service focused on Nunavut’s attractions can help visitors navigate this remote territory. Developing a line of cold-weather gear tailored for Arctic tourism could also be profitable.

Resources on the Best Businesses to Start in Nunavut

Government Resources:

Industry Resources:

Other Resources:

Maurice

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Canada to identify and maximize funding to grow their business.

Sweet Success: How to Start a Home Baking Business in Ontario

Tips on How To Start A Bed And Breakfast In Ontario

Why Start Business in Toronto: A Guide to Canada’s Economic Hub

How To Start Immigration Business In Canada: An Overview

How to Start a Lending Business in Canada: Your Roadmap to Success

How to Get Money to Start a Business in Canada: Proven Ways

Bridging Borders: How to Start a Money Transfer Business in Canada

How To Start A Business In Toronto With No Money

How to Start a Business in Ontario: Your Guide to Winning Big

Breaking Down the Cost of Starting a Business in Toronto