Mon, Jul 06, 2009

Business

Census data: U.S., Tucson native-owned firms thriving

By Levi J. Long
ARIZONA DAILY STAR
Tucson, Arizona | Published: 06.21.2006
New census figures highlighting American Indian and Alaska Native-owned businesses in the United States show that more than 760 such firms operated in the Tucson region in 2002, with annual receipts totaling more than $72 million.
Most of those firms consist of self-employed people working as professional consultants in the health and social services sector or in retail trade.
The number of American Indian-owned firms with paid employees in Tucson is much lower with about 75 companies reporting paid staffs, with most of those in the construction sector.
The information comes from a report released Tuesday by the U.S. Census Bureau.
In Arizona, the report shows more than 6,500 American Indian-owned companies, with annual receipts totaling more than $570 million. Nationwide, there were more than 200,000 American Indian- and Alaska Native-owned businesses with receipts totaling $26.9 billion.
The data comes from the Census Bureau's 2002 Survey of Business Owners, which counted businesses with more than 51 percent of its stock or equity owned by American Indians or Alaska Natives.
Statistics from the report do not count businesses owned by an American Indian tribes, which are considered to be government-owned enterprises and are excluded from estimates. A 1997 census survey of American Indian businesses did not make that distinction.
The 1997 report showed more than 197,300 American Indian and Alaska Native-owned businesses in the United States.
Comparative figures are not available, as the Census Bureau cannot quantify how many tribal governments were included in the 1997 estimates, said Val-erie Strang, a survey statistician with the Census Bureau.
Local experts are seeing more interest among American Indians in starting small businesses in Tucson — and seeing existing firms succeed.
"We're seeing more businesses, not only starting but surviving and thriving," said Joan Timeche, assistant director of the Native Nations Institute for Leadership, Management and Policy at the University of Arizona, which researches American Indian economic policies.
Many new businesses fail in their first few years, but some are getting past that mark, she said.
With its rows of hydroponic herbs and plants growing inside a greenhouse, Native American Botanics, 4721 W. Calle Torim, is one of the few in Tucson with a major presence in the community, she said.
Since starting the herbal supplement business in 1998, Guillermo "Bill" Quiroga, president of Native American Botanics, said they have been able to remain competitive because of federal grants and loans through the Pascua Yaqui Tribe.
"We are surviving, but the market is tough," Quiroga said, citing a lack of resources for startup businesses.
American Indian nations need to embrace entrepreneurship by supporting and offering more business literacy classes and providing access to business consultants and capital, he said.
Support is also a problem locally, without a chapter of the American Indian Chamber of Commerce, which has been inactive for several years, said Quiroga, a former member of the group.
Several nonprofits, including some in Arizona, offer assistance and training to American Indians, but many entrepreneurs are unaware of such help, Timeche said.
Indians may lack career education and business role models, Timeche said, while tribal culture may not foster an entrepreneurial spirit.
"Some are raised to think about the common good of the community, rather than the success of the individual," she said.
Most reservations also do not have retail or office space to rent and prospective business owners can face red tape, she said.
"It's much easier to look in towns or cities to start businesses. There is a distinct advantage to moving off the reservation," Timeche said.
But local tribal governments are starting to develop more support for tribal members, with the Tohono O'odham Nation and the Pascua Yaqui Tribe both offering business loans and business education classes.
"We have a lot of talent on the reservation. We see a lot of growth for the future," said Pascua Yaqui Chairwoman Herminia Frias. The tribe's Development Services Division provides members with consultants to develop business plans and help with finding grants.
● Contact reporter Levi J. Long at 573-4179 or llong@azstarnet.com.