American Indian/Native American Small Businesses: A Profile

This article profiles businesses that are owned by American Indian/Native Americans. Too often, this important segment of minority business owners is overlooked in market research. The Gazelle Index seeks to correct this by periodically analyzing the characteristics of this segment. This profile focuses on business owners who are registered small business contractors with the federal government.

According to the Survey of Business Owners, the number of businesses owned by American Indian/Native Americans increased by 17.7% between 2002 and 2007, and their earnings increased by 28.0%. There were 236,967 businesses owned by this group, and they generated $34 billion in revenue at the latest census, which was conducted in 2007. They now comprise .9% of all small businesses in the US.

Geographically, California had the largest number of firms owned by American Indians/Native Americans (19.3%) followed by Oklahoma (A .9%) and Texas (8%).

Profile of American Indian/Native American Federal Contractors

The Gazelle Index conducted a study of minority-owned businesses that are registered with the federal government.

Firms owned by American Indian/Native Americans were most heavily concentrated in construction industries. For example, 31.4% of their businesses were in construction of buildings, 7.1% was in heavy construction and 11.4% was a specialty trades contracting.

The other industries where American Indians/native American firms were concentrated include professional, scientific and technical services (20.7%) and primary metal and machinery manufacturing (10.0%). Also, for a more recent Gazelle Index post on this topic see Native Americans/American Indians Excel in Construction Contracting.

INDUSTRY CONCENTRATION OF AMERICAN INDIAN/NATIVE AMERICAN SMALL BUSINESS FEDERAL CONTRACTORS

The profile indicates that American Indian/Native American firms comprised .9% of all small businesses in the US and represented 4.3% of the federal government contractors. The field represented the largest share of all government small business contractors was construction of buildings, 11.5%and heavy construction.

 AMERICAN INDIAN/NATIVE AMERICAN’S SMALL BUSINESS SHARE OF FEDERAL CONTRACTORS BY INDUSTRY

 The average revenue of firms in this group was $2.9 million. Revenue was highest among firms in paper, printing and related manufacturing ($7.8 million); Internet publishing and telecommunications ($7.2 million); computer and electronic manufacturing ($4.7 million) textile and leather manufacturing ($4.2 million); and construction of buildings ($4.1 million).

The gross revenue of American Indian/Native Americans, who were registered with the federal government, was $5.9 billion. The largest share of that revenue was earned in the construction industry. Finally, the average employment size of firms was 11 workers and firms in paper, printing and related manufacturing had the highest average employment (17 workers). All figures above are compiled for the year 2007.

AMERICAN INDIAN/NATIVE AMERICAN SMALL BUSINESSES AVERAGE REVENUE, EMPLOYMENT AND GROSS REVENUE BY INDUSTRY

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American Indian/Native American Small Businesses: A Profile
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