Senate Democrats

Native American Small Businesses: Diversity, Economic Growth, and Job Creation in America

America’s small businesses are the backbone of our economy, helping to keep the country competitive through innovation and new ideas. Democrats recognize that one of our nation’s greatest assets is our diversity. Investing in minority businesses, therefore, helps to increase the value of that asset and to promote economic growth and job creation.

Native American small business enterprises are growing. Over the last ten years, minority business enterprises accounted for over 50 percent of the two million new businesses started in the United States, crossing every industrial sector from financial services and health care to construction and transportation. Today there are more than four million minority-owned companies in the country with annual sales totaling $694 billion. Between 1997 and 2002, the number of Native American-owned firms increased by two percent. (SBA Office of Advocacy, 4/2007)

There are over 200,000 Native American-owned firms in America,
supporting 191,270 employees.

A state-by-state report on Native American small businesses is attached in Appendix A.

Minority-owned firms, however, make significantly less than their non-minority counterparts. The average gross receipts of minority firms were $162,000 – considerably lower than the $448,000 average gross receipts of non-minority firms. On average, for every dollar that a White-owned firm made, Native American-, Hispanic-, and Asian-owned businesses made 56 cents; Black-owned businesses made 43 cents; and Pacific Islander-owned firms made about 59 cents, according the Small Business Administration (SBA) (SBA Office of Advocacy, 4/2007).

The Small Business Administration should be a resource for minority-owned firms. The SBA is supposed to reach out to more minorities, women and other underserved communities to market their financing, contracting, and training programs. For the last seven years, however, the Bush Administration has not made helping underserved communities a priority.

The continuing disparity between the number and earnings of minority firms in the United States and the continuing barriers many minorities face as they seek to start or expand a business demonstrates the need for targeted programs at the federal level for minority entrepreneurs. Despite signs that small businesses are facing increasingly difficult market conditions, President Bush’s Fiscal Year 2009 budget proposal for the SBA raises fees on loans, provides no funding for microloans, fails to invest in more contracting oversight, and cuts funding for key business assistance programs like Women’s Business Centers and Small Business Development Centers. 

Appendix A

Native-American-Owned Small Businesses

State

Small Businesses

Jobs

Income

American Indian- and Alaska Native-Owned Small Businesses

UNITED STATES

26,800,000

58.6 million

$992.5 billion

201,400

Alabama

368,500

826,200

$10.6 billion

2,900

Alaska

67,300

132,700

$2.4 billion

5,200

Arizona

473,000

1,000,000

$15.1 billion

6,500

Arkansas

247,700

499,800

$6.0 billion

2,300

California

3,675,700

6,900,000

$151 billion

38,100

Colorado

550,100

991,900

25.4 billion

3,900

Connecticut

347,600

774,800

$18.8 billion

1,200

Delaware

76,300

180,000

$2.5 billion

Data Unavailable

District of Columbia

65,200

207,200

$4.2 billion

200

Florida

1,942,200

3,100,000

$39.2 billion

9,900

Georgia

859,500

1,600,000

$25.6 billion

4,500

Hawaii

117,200

268,900

$3.1 billion

900

Idaho

151,300

284,700

$4.5 billion

1,100

Illinois

1,121,300

2,600,000

$42.5 billion

3,400

Indiana

486,400

1,300,000

$14.7 billion

2,000

Iowa

261,800

660,400

$6.4 billion

600

Kansas

246,900

609,800

$8.8 billion

1,700

Kentucky

346,200

759,200

$8.5 billion

1,300

Louisiana

364,900

895,600

$10.6 billion

2,700

Maine

154,000

302,700

$3.4 billion

700

Maryland

536,200

1,100,000

$16.8 billion

3,600

Massachusetts

651,100

1,500,000

$24.8 billion

2,200

Michigan

849,500

2,000,000

$28.4 billion

5,400

Minnesota

504,000

1,200,000

$13.1 billion

2,700

Mississippi

216,700

473,000

$5.8 billion

700

Missouri

508,900

1,200,000

$14.5 billion

3,300

Montana

115,700

224,700

$3.1 billion

2,000

Nebraska

161,800

400,700

$5.0 billion

400

Nevada

215,800

453,100

$6.7 billion

1,900

New Hampshire

145,900

311,500

$4.7 billion

500

New Jersey

828,400

1,800,000

$34.9 billion

2,600

New Mexico

158,200

338,700

$4.6 billion

6,800

New York

1,925,100

3,900,000

$85.4 billion

11,200

North Carolina

766,500

1,600,000

$19.1 billion

6,000

North Dakota

63,100

167,700

$1.7 billion

900

Ohio

920,500

2,400,000

$26.9 billion

3,100

Oklahoma

332,000

656,000

$16.4 billion

17,100

Oregon

350,500

771,400

$10.3 billion

3,100

Pennsylvania

1,006,900

77,800

$39.9 billion

Data Unavailable

Rhode Island

101,800

252,900

$2.8 billion

400

South Carolina

352,900

780,800

$8.1 billion

1,400

South Dakota

79,100

195,700

$2.3 billion

1,300

Tennessee

531,200

1,100,000

$23.3 billion

3,600

Texas

2,093,400

3,900,000

$122.6 billion

16,200

Utah

236,000

467,200

$7.0 billion

1,100

Vermont

80,300

162,800

$1.7 billion

300

Virginia

643,600

1,500,000

$20.7 billion

2,700

Washington

578,300

1,300,000

$19.4 billion

5,700

West Virginia

125,300

313,600

$3.6 billion

400

Wisconsin

447,200

1,300,000

$12.1 billion

2,500

Wyoming

61,900

129,000

$2.4 billion

600

Source: SBA Office of Advocacy, 2007. Minority-owned business data are from 2002, the most recent data available from SBA and the Department of Commerce. Statewide figures are from 2006, the most recent data available from SBA and the Department of Labor.

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