July 19, 2001

North Dakota Businesses Owned by American Indians Generate $147 Million in Revenue

American Indians owned 752 North Dakota nonfarm businesses in 1997, employing 1,111 persons and generating $147 million in business revenues. According to the recent Economic Brief released from the North Dakota State Data Center at North Dakota State University, in 1997 American Indian-owned firms accounted for 1.4 percent of all nonfarm businesses in North Dakota, 0.5 percent of the state’s employment and 0.4 percent of receipts.

"These data provide us important insight into the economic contribution of our largest minority group. Native Americans represent nearly 4 percent of our state’s adult population. Businesses owned by American Indians contributed nearly $17 million in annual payroll to the state in 1997. Unfortunately, the data regarding Native American businesses collected for the 1992 Economic Census are not comparable, thus we can’t determine how their ownership has changed," said Richard Rathge, director of the center.

Nearly half of American Indian-owned firms operated as a service or in retail trade. Another fourth were businesses in construction and transportation, communication, and utilities. Approximately one-half of the receipts were concentrated in retail trade and services.

American Indian-owned firms with paid employees accounted for 23.7 percent of the total number of American Indian-owned firms and 80.9 percent of gross receipts.

The data presented in this month’s Economic Brief are from the 1997 Economic Census, Minority-Owned Business Enterprises report released in May. The Economic Census is conducted every 5 years with 1997 data being the most current. The data for 1997 are not directly comparable to previous survey years because of several significant changes to the survey methodology. For more information on methodology, visit http://www.census.gov/epcd/www/econ97.html .

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Source: Richard Rathge, (701) 231-8621, richard_rathge@ndsu.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu

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