Native American Businesses
When you look at self-sufficiency among tribes, there are many things to consider… many variables that must act together to create a path toward economic and financial independence. And, when you consider that Native-owned businesses “represent the smallest number of minority owned small businesses when compared to African American, Hispanic, or Asian American businesses,” it’s easy to see why financial self-sufficiency is such a daunting undertaking.
Besides the obvious topic of sovereignty when discussing businesses on reservations, there is the issue of how businesses might help tribes as their individual members work toward self-sufficiency. Why do Native people, on reservations or off, start their own businesses? Because they want to make their lives better. They want to provide a service. They want to add economic value to the community.
However, starting a business on the reservation is difficult for many reasons. On the reservations NRC serves, the impoverishment that spans entire communities makes it difficult to build a customer base that can support a business long-term. There is a shortage of college graduates and a lack of entrepreneurial training or initiatives on the reservations that would help Native Americans with little or no experience in the many facets of running a business. Accessing business start-up funding is also difficult, especially when the business would be located on federal trust lands.
Yet, for a group that makes up 1.01% of the total population in the United States, the 300,000 Native-owned businesses are growing, albeit in small increments. For example:
“Although the total number of Native American small businesses continues to increase, those with employees decreased 3.2 percent during the 2002-2007 period (0.9 percent of all U.S. businesses). In 2007, Native American businesses numbered 236,967 for an increase of 17.7 percent during the five-year time period of 2002-2007. These American Indian- and Alaska Native-owned firms accounted for 0.9 percent of all non-farm businesses in the United States, employed 184,416 persons (0.2 percent of total employment) and generated $34.4 billion in receipts (0.1 percent of all receipts).”
The U.S. Census reports the following scenarios for Native American businesses. Thinking these through, $34.4B in revenue sounds like a lot, but it averages out to $114,667 per business. Further, only eight percent of Native businesses actually create jobs and less than 1/2000 of one percent employ 100 people or more. These businesses do, however, represent a significant amount of self-employment.
$34.4 billion
Receipts for American Indian- and Alaska Native-owned businesses in 2007, a 28.0 percent increase from 2002. These businesses numbered 236,967, up 17.7 percent from 2002.45,629
Number of American Indian- and Alaska Native-owned firms in California in 2007, which led the states. Oklahoma and Texas followed. Among the firms in California, 17,634 were in the Los Angeles-Long Beach-Santa Ana metro area, which led all metro areas nationwide.23,704
Number of American Indian- and Alaska Native-owned firms that had paid employees in 2007. These businesses employed 184,416 people.30.5%
Percent of American Indian- and Alaska Native-owned firms that operated in construction; and repair, maintenance, personal and laundry services in 2007.52.9%
Percent of American Indian- and Alaska Native-owned business receipts accounted for by construction, retail trade and wholesale trade in 2007.4,599
Number of American Indian- and Alaska Native-owned firms with receipts of $1 million or more in 2007.162
Number of American Indian- and Alaska Native-owned firms with 100 or more employees in 2007.
Source for data in this section: Survey of Business Owners-American Indian and Alaska Native Owned Firms: 2007.
The growing self-employment and incremental growth is a good thing for Native Americans across the country. They are seeing the potential for positive change in their own lives, in their communities, and in the world around them as they create self-sustaining opportunities for financial independence.
12 Comments
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how do i get more details about this?
There are several organizations you can contact, such as the Native American Enterprise Initiative and the American Indian Business Alliance. Different localities also have an American Indian Chamber of Commerce.
Hello, do you have a newsletter to follow up by email?
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