A landmark report from Supply Nation found Indigenous businesses create $42.6 billion of social value each year and allow First Nations people more freedom to live on their own terms.
It's leading to better mental health outcomes, more pride among communities and a better connection to culture and Country, the report found.
Supply Nation, which provides Australia's biggest database of Indigenous businesses, said "social value" included things such as agency over life, expanded aspirations, financial security and physical and mental health.
Some $16.2 billion of the social value created was experienced by Indigenous employees.
Supply Nation chief executive Kate Russell launched The Sleeping Giant Rises report at a Business Sydney event on Monday, coinciding with NAIDOC Week.
"The closing the gap narrative is overwhelmingly negative but ... we believe that indigenous entrepreneurs are closing the gap better than other parts of Indigenous Australia," she told AAP.
"By lifting up our indigenous communities ... that is saving government money in terms of welfare payments ... but it's also lifting a sense of pride, aspiration, happiness and well being in those communities."
By economically empowering a nascent but thriving business sector of about 6000 companies, verified by Sleeping Giants on a register, the financial and social dividends would benefit millions of Aboriginal Australians.
"The Indigenous business sector is not a story of disadvantage. It is a story of empowerment, it is a story of self determination and we need to have a positive lens on what is often a deficit conversation," she said.
Nearly 66,000 First Nations people are employed by Indigenous businesses, and 84 per cent of owners said those employees were better able to support families and feel positive about life.
Many owners reported more home ownership among staff, with more than six-in-10 believing employees were more likely to own homes.
Seven-in-10 business owners said young people in their families were more likely to finish year 12, the same result as those who were more likely to complete a university or TAFE degree.
One business owner quoted in the report described themselves as a "role model to my children".
"They've seen the hard work that's gone into being a business owner for the last 16 years and now they are starting to see the benefits for me and for them," they said.
The report also called for more active role in policymaking that affects Indigenous Australians.
"Governments must consider giving indigenous entrepreneurs or indigenous businesses a seat at the table when they're making broader policies like Closing the Gap," Ms Russell said.
"They deserve to be backed."
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