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Public Information Office                                                                    CB01-87
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Eddie Salyers
Valerie Strang
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American Indian- and Alaska Native-Owned Businesses Near 200,000;
California, Texas, Oklahoma Lead States, Census Bureau Reports

   American Indian- and Alaska Native-owned businesses [PDF] in the United States totaled 197,300, employed 298,700 people and generated $34.3 billion in revenues in 1997, according to a report released today by the Commerce Department's Census Bureau.

   Businesses owned by American Indians and Alaska Natives made up 0.9 percent of the nation's 20.8 million nonfarm businesses and generated 0.2 percent of all receipts.

   The vast majority of American Indian- and Alaska Native-owned firms, 88 percent or 173,400, were sole proprietorships (unincorporated businesses owned by individuals). Some businesses not owned by individuals, such as those owned by tribes, were excluded from the survey.

   For the first time, the data, which were collected in the 1997 Survey of Minority-Owned Business Enterprises, included C corporations. C corporations are legally incorporated businesses, excluding subchapter S corporations whose shareholders elect to be taxed as individuals rather than corporations. Nearly one-third of all revenues generated by American Indian- and Alaska Native-owned businesses were produced by 9,400 C corporations with receipts of $11.9 billion.

   The number of American Indian- and Alaska Native-owned firms, excluding C corporations for which prior comparable data are not available, increased 84 percent from 1992 to 1997, compared with a 7 percent increase for all U.S. firms.

   Receipts of American Indian- and Alaska Native-owned firms rose 179 percent, to $22 billion in 1997, compared with a 40 percent increase for all U.S. firms over the same period.

   Four states, California (26,600), Texas (15,700), Oklahoma (15,100) and Florida (10,500), accounted for 34 percent of the firms owned by American Indians and Alaska Natives. Three out of 10 American Indians and Alaska Natives reside in these states.

   The following two tables show the top 10 states by number and percentage of American Indian- and Alaska Native-owned firms.

   About 41 percent (80,800) of American Indian- and Alaska Native-owned businesses had 1997 receipts of under $10,000 and about 2 percent (4,900) had sales of $1 million or more. Average receipts per firm were $174,100 compared with $410,600 for all U.S. firms excluding publicly held corporations and firms, such as mutual companies, whose owners' race or ethnicity could not be determined.

   The survey data also show that 17 percent (33,300) of American Indian- and Alaska Native-owned firms had paid employees. There were 400 firms with 100 or more employees.

   Seventeen percent of American Indian- and Alaska Native-owned firms were in the service industry and 14 percent were in construction. Receipts from service businesses accounted for 15 percent of all receipts, while construction businesses accounted for 16 percent of all receipts.

   The data in the report were collected as part of the 1997 Economic Census from a large sample of all nonfarm businesses filing tax forms as sole proprietorships, partnerships or any type of corporation with receipts of $1,000 or more in 1997.

   The report, 1997 Survey of Minority-Owned Business Enterprises: American Indians and Alaska Natives, presents data for American Indian- and Alaska Native-owned businesses by size, type of business and geographic areas (states, counties, metropolitan areas and places).

   The data were collected in a sample survey and are subject to sampling variability, as well as nonsampling errors. Sources of nonsampling error include errors of response, nonreporting and coverage. Further details concerning survey design, methodology and data limitation are contained in the full report. Comparisons with 1992 data should be conducted with caution due to changes in tax laws that caused inconsistencies between 1992 and 1997 data. Changes in survey methodology also may contribute to differences.

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