Native American Small Business

Americans across the board are opening small businesses in record numbers. Native American small business entities are growing also, as more resources are becoming available for Native entrepreneurs.

Technical Assistance

There is a great deal of technical assistance available to help a Native American small business. The US Department of Commerce has the Minority Business Development Agency that provides a number of Native American business enterprise centers distributed throughout the Unites States. These centers exist to help Native businesses with financing, procurement leads, technical contract assistance, and much more. The US federal government also provides an Office of Native American Affairs with the Small Business Administration. While the US Department of Defense provides a few Procurement Technical Assistance Centers for Native Americans.

These are just a sampling of federal centers specifically for a Native American small business. There are many more small business centers for minorities provided on the local, state, and regional level. Then there are open small business centers available to all entrepreneurs, many within chambers of commerce. They often have business loans for minorities through regional or local not-for-profit lenders. If not they have relationship with banks open to small businesses. Also, they can utilize the SBA Express Micro-loan program as another option. It is a quick low documentation loan program, but also for low capital requirements (under $50,000).

Also, tribes are beginning to open small business development centers for the tribes. These tribal centers assist a Native American small business not only with technical business assistance, but can also help an entrepreneur become a vendor with the tribe. Some tribes have very large economic development concerns, and being a vendor for such can be lucrative.

Financing

Financing a business is never easy. Conventional financing comes down to a good business plan, proven management, top-notch credit, and an ability to collaterize the loan. These components may be difficult for a Native American small business but help is available.

As more tribes begin to prosper with economic development efforts like gaming and federal contracting, they have begun to help their tribal members begin the road to entrepreneurship. Many tribes as they develop business development centers, realize that financing is a needed ingredient for business success. With that thought they establish revolving loan funds for entrepreneurs. Some choose to assist tribal members only, others all natives, others open funds to all in the tribe's vicinity. As an example the Citizen Potawatomi have established a loan fund serving all Native Americans within their tribal jurisdiction.

Diversity

Fortune 500 companies have established diversity departments that serve two functions- to develop a diverse workforce and a diverse small business vendor base. Of interest to a Native American small business is becoming a vendor for the large corporation. These diversity offices can be a welcome place to start contacting the larger companies for purchasing opportunities. Indeed, many of these diversity and purchasing personnel attend many of the minority marketing events like ethnic chambers of commerce and supplier councils. Also, large government contractors are required to a certain amount of business with small businesses. That is another reason the large corporations could seek out a Native American small business.

Government Set Asides

Speaking of government contracts, pursuing government set-asides is a huge incentive for the Native American small business. HubZone and minority 8(a) status are two federal certifications a business can pursue for federal contracts. Also, these certifications can help businesses pursue state and local set-aside contracts. This certification is also of interest to many government contractors that need to do business with disadvantaged businesses.

While the above government contracts set-asides are for all minorities, the Department of Defense allocates a portion of business to be done to be with Native firms every year. Unfortunately, these dollars are quickly taken in the fiscal year. To leverage this program, those businesses wishing to business with the DoD should try to push contracts early in the fiscal year. However, at the end of the year the federal departments are often trying to spend their excess dollars before the end of the year. That makes a couple of months before and after the fiscal year change a good time for government sales.