Native American Businesses Boom

WASHINGTON - According to the U.S. Census Bureau, there were 236,967 American Indian- and Alaska Native-owned businesses in 2007, an increase of 17.7 percent from 2002. The total number of U.S. businesses increased by 17.9 percent. American Indian- and Alaska Native-owned businesses generated $34.4 billion in receipts in 2007, a 28.0 percent increase from 2002.

These new data come from the Survey of Business Owners: American Indian- and Alaska Native-Owned Businesses: 2007. The survey provides detailed information every five years for American Indian- and Alaska Native-owned businesses, including the number of firms, sales and receipts, number of paid employees and annual payroll.

“The data released today provides the only source of population-wide, regularly collected information on businesses owned privately by individual American Indians and Alaska Natives,” said Thomas L. Mesenbourg, Census Bureau deputy director. “It's important to look at the progress of these businesses owned by individual American Indians and Alaska Natives to ensure they have access to the same entrepreneurial opportunities as other groups.”

Data are presented by geographic area (nation, state, county, city and metro area), industry and size of business. Preliminary national and state data were released in July 2010.

The tabulations released today do not include tribally-owned businesses or businesses owned by Alaska Native Regional or Village Corporations and their subsidiaries, which are defined as government-owned.

Among states, in 2007, California had the largest number of American Indian- and Alaska Native-owned businesses with 45,629, accounting for 19.3 percent of the nation's American Indian- and Alaska Native-owned businesses. California was followed by Oklahoma, with 21,194 American Indian- and Alaska Native-owned businesses (8.9 percent) and Texas, with 19,057 (8.0 percent).

Among counties, Los Angeles, Calif., had the largest number of American Indian- and Alaska Native-owned businesses with 14,195, accounting for 6.0 percent of all the nation's American Indian- and Alaska Native-owned businesses.

Among metropolitan areas, Los Angeles-Long Beach-Santa Ana, Calif., had the largest number of American Indian- and Alaska Native-owned businesses with 17,634 (7.4 percent), followed by New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa., with 13,188 (5.6 percent).

Other highlights:

Of the 236,967 American Indian- and Alaska Native-owned businesses in 2007, 23,704 had paid employees, a decrease of 3.2 percent from 2002. These businesses employed 184,416 people, a decrease of 3.6 percent from 2002. Their payrolls totaled $5.9 billion, an increase of 15.4 percent. Receipts from these employer businesses totaled $27.5 billion, an increase of 25.1 percent.
In 2007, 213,263 American Indian- and Alaska Native-owned businesses had no paid employees, an increase of 20.6 percent from 2002. These nonemployer businesses generated $6.9 billion in receipts, an increase of 40.7 percent from 2002.
The number of American Indian- and Alaska Native-owned businesses with receipts of $1 million or more increased 26.7 percent from 3,631 in 2002 to 4,599 in 2007.
The number of American Indian- and Alaska Native-owned businesses with 100 employees or more decreased by 9.0 percent from 178 to 162.
In 2007, 30.5 percent of American Indian- and Alaska Native-owned businesses operated in construction; and repair, maintenance, personal, and laundry services.
In 2007, construction, retail trade and wholesale trade accounted for 52.9 percent of American Indian- and Alaska Native-owned business receipts.

The Survey of Business Owners defines American Indian- and Alaska Native-owned businesses as firms in which American Indians and Alaska Natives own 51 percent or more of the equity, interest or stock of the business. Additional reports from the survey highlighting other minority- and veteran-owned businesses will be issued this year. Subsequently, separate publications will be issued highlighting additional characteristics of all businesses and their owners.

The Survey of Business Owners is conducted every five years as part of the economic census. The 2007 survey collected data from a sample of more than 2.3 million businesses. Data collected in a sample survey are subject to sampling variability, as well as nonsampling errors. Sources of nonsampling errors include errors of response, nonreporting and coverage.