"Beyond Casinos: Understanding the Business Climate on Indian Lands"

Presented by Joan Timeche

Beyond Casinos: Understanding the Business

Climate on Indian Lands

July 13, 2011 Hotel, Ft. Lauderdale, FL

Presented by Joan Timeche

Village of Old Oraibi,

Hopi Reservation,

~ 1980’s

My daughter, Briana, in traditional Hopi dress.

Hopi Buffalo dancers

Long-Hair Katsina dancers, painting by Gilbert Timeche

Presented by Joan Timeche

Presentation Topics1. What is the status of business development in

Indian Country?2. What are the challenges of business

development in Indian Country?3. What is the business development process on

Indian lands?4. What’s working in Indian Country?5. Q & A

Presented by Joan Timeche

1. What is the status of business development in Indian Country?

564 federally recognized tribes in 32 states

> 1.5 million Native Americans (~1% of US population)

55.7 million acres of trust land across the U.S.

Sources: Bureau of Indian Affairs and US Census 2000

Presented by Joan Timeche

1. What is the status of business development in Indian Country?

Presented by Joan Timeche

1. What is the status of business development in Indian Country?

Who constitutes the tribal economy?

•For illustrative purposes only.•There is great variation from Native nation to Native nation.

Presented by Joan Timeche

1. What is the status of business development in Indian Country?

Presented by Joan Timeche

Survey of Minority Owned Enterprises – American Indian and Alaska Natives (2007 Economic Census)

Presented by Joan Timeche

Survey of Minority Owned Enterprises – American Indian and Alaska Natives (2007 Economic Census)

Presented by Joan Timeche

Survey of Minority Owned Enterprises – American Indian and Alaska Natives (2007 Economic Census)

Presented by Joan Timeche

Survey of Minority Owned Enterprises – American Indian and Alaska Natives (2007 Economic Census)

Presented by Joan Timeche

So, despite these increases, why are there not

more businesses in Indian

Country?

Presented by Joan Timeche

2. What are the challenges of business development in Indian Country?

TRIBAL GOVERNMENT POWERS:Citizenship Governmental FormLaw Making and Enforcement*Dispute Resolution (Court Systems)*Civil Affairs (within limits) Some Criminal Matters TaxationLands and Natural ResourcesEnvironmental RegulationBusiness Permitting and Regulation*Cultural and Religious Affairs

The business climate …

Presented by Joan Timeche

2. What are the challenges of business development in Indian Country?

Goal of the business

Land The business development processCapital Etc., etc.

Jobs ProfitDefinition of wealth

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The Nation-Building Approach to Economic Development

(Harvard Project on American Indian Economic Development and Native Nations Institute)

1. Practical self-rule (the nation calls the shots)

2. Capable governing institutions (back up authority with competence)

3. Cultural match (governing institutions match community beliefs about how authority should be organized)

4. Strategic orientation (decisions are made with long-term priorities in mind)

5. Public-spirited leadership (instead of politics as boxing ring where factions fight to control the goodies)

Presented by Joan Timeche

What Might the Nation Do to Support Business Development?

Sensible Regulation• Zoning• Site leasing• Land/Env/Nat Res• A commercial code• A corporation code

Financing Services• Start-up loans• Lines of credit• Credit counseling

Small Business Services• Education• Marketing & other

cooperatives• Support services

Infrastructure• Land• Water and Sewer• Telecommunications• Roads

Efficient and Effective Dispute Resolution (an independent tribal court)

Presented by Joan Timeche

3. What is the Business Development Process?The following is a very basic and generic listing of steps. Note that these will vary from nation to nation thus may not be in sequential order. Conduct initial research and

begin business planning Contact tribal/ local

government and all relevant entities for appropriate processes

Secure land (if applicable) and obtain all clearances (survey, NEPA, archeological , etc.)

Obtain any necessary licenses/ permits

Submit business plan (letter of intent or application may be required in advance)

Secure financing Obtain approvals at local/

regional/ tribal levels Obtain BIA lease approval

(as applicable)

Presented by Joan Timeche

3. What is the Business Development Process?

❏ Plan, Plan, Plan (write a business plan)• Define your company and formalize legal structure• Obtain the land/site for your business, if applicable• Define your product or service • Conduct an industry analysis• Define your target market, competitors, and marketing

plan• Define your operational/management plan• Define what you need to start your business, financial

projections, and sources/uses of funds

Presented by Joan Timeche

Who are the Principal Authorizing Agents who play a role in development of any business?• Tribal Government (administration, Chairman/President,

legislative committees, Tribal Council/Legislature)• Local governing entities/individuals (as applicable)• Clans/Religious Leaders and informal leaders• Bureau of Indian Affairs• Indian Health Service Office of Environmental Health

What is the Regulatory Environment (federal, tribal, state)? • Preferential Employment (TERO)• Environmental protection• Business licensing• Taxation• Judicial system

3. What is the Business Development Process?

Presented by Joan Timeche

4. What’s Working in Indian Country?

For successful sustained development to occur, the following are critical:

Common vision about the future of the community a strategic plan for community & economic development

Informed consent on use of land a land use plan or comprehensive plan for planned growth

Land for development - Uncertainties can be reduced by adopting:⇒ a zoning ordinance⇒ an efficient leasing process⇒ a position on private sector

development vs. tribal ownership

Presented by Joan Timeche

A commitment to economic development by the local/tribal decision-makers. This includes: a willingness to learn

about development understanding that you

must spend money to make money (authorizing the $$)

understanding and practicing the separation of business and politics

Institutional Infrastructure that can support development such as - a regulatory system that addresses

• rules of commerce (Uniform Commercial Code, preference laws, etc.)

• acceptable industries (policy statement)

• controls you want to impose (safety, health, and other integrity concerns)

• registration/licensing of business and collection of fees & taxes

a judicial system that• can enforce regulations• is fair & consistent in resolving

disputes a business development process

that is efficient and user friendly

Presented by Joan Timeche

Resources to develop the physical infrastructure (water, sewer, electricity, roads, etc.) as most land is either under- or undeveloped

The financial resources or willingness to secure funds to support development

Gathering as much information as possible and seeking the necessary assistance to make informed decisions

Believe in yourself and in your people. We may not be as business savvy as the non-Indian world yet, but we have definitely made major strides. Look at all our accomplishments in exercising our sovereignty building our nations all while maintaining our cultural integrity!!

Presented by Joan Timeche

Some Examples . . .

Kayenta Township Ho-Chunk, Inc.,

Winnebago Tribe Crow Nation Ysleta del Sur Pueblo

Pine Ridge Chamber of Commerce

Citizen Potawatomi Nation

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Q & A

We’ve covered a lot --- what questions do you have or any items that need to be clarified?

Presented by Joan Timeche

For further information:Visit:

www.nni.arizona.edu www.rebuildingnativenations.com www.arizonanativenet.com www.ksg.harvard.edu/hpaied/

Obtain a copy of:

Presented by Joan Timeche

Contact Information:Joan Timeche, Executive DirectorNative Nations InstituteUdall Center for Studies in Public Policy803 E. First StreetTucson, AZ 85719Phone: 520.626.0NNI (0664)Fax: 520.626.3NNI (3664)Email: [email protected]

Askwali! (Thank You!)