By Madeline Bowen

Native Americans have often focused on a single industry in their tribe to generate economic impact such as manufacturing, casinos, farming, etc. However, a few tribes have taken on the task of diversifying their economic development by introducing a business incubator. Business incubators provide businesses with basic start-up programs designed to assist with accounting and tax information, turning business ideas into plans, marketing, networking, operation costs, and more. Different programs can be tailored to better serve the current cohorts of new businesses and entrepreneurs in the community. Beyond serving business needs, business incubators can also provide space to host conferences, public workshops and classes, meetings, private events, and more.

Currently two tribes in the Pacific Northwest have conducted, or are in the midst of, a feasibility study to determine the demand and impact of their own business incubators. In both cases, these studies were guided by the tribe’s Community Development Financial Institutions (CDFI). A CDFI is a financial institution that primarily serves geographically low-income communities and individuals who have limited access to financial assistance. Aside from financial aid, CDFIs may also provide home loan assistance, business education webinars/workshops, small business loans, and credit assistance.

The first study focused on the Nez Perce Tribe consisting of over 3,500 members with 1,800 living on the Reservation (77,000 acres) located in Lapwai, Idaho. Their local CDFI, formally known as the Nimiipuu Fund, piloted the study from November 2021 to May 2022 with the assistance and recommendations of Points Consulting. Following a community survey garnering over 180 tribal member responses, the study revealed a large need for small business owners and entrepreneurs to receive education on basic business concepts, marketing, taxes, and finances. It was also shown that many of these businesses and entrepreneurs are interested in establishing retail services for arts, craft, jewelry, and catering. Simultaneously, the interested individuals have a strong need for wifi/broadband access. Prior to and during the COVID-19 pandemic these business owners operated out of their homes and struggled to market and sell their products due to lack of internet service.

To address all needs of the business community within the Nez Perce Tribe, establishing a central location for a business incubator is a top priority for the Nimiipuu Fund. A prime location for the Nimiipuu Fund to construct the business incubator was recommended near the Clear Water River Casino. This site offered proximity to the highway and the Nez Perce Tribal Enterprise headquarters, as well as space for future expansion. The Nez Perce Tribe has recently purchased land behind the Casino intended for economic development. Based on a financial analysis, the initial building and outfitting of the Nimiipuu Fund Business Incubator is estimated to cost $2.17M. Once built and operating, the Business Incubator’s annual expenses would run in the range of $280K. The Business Incubator would earn some revenue, likely in the range of $21K, but would still require considerable subsidies from government and philanthropic organizations. Receipt of a Bureau of Indian Affairs’ (BIA) Indian Business Incubator Program (IBIP) grant in the amount of $245K/year would help considerably, but other sources are also needed. The recommended next steps for the Nimiipuu Fund and Nez Perce Tribal leaders are to seek and secure funding sources for construction and support, as well as provide continual and patient leadership. In addition, leaders need to exhort individuals with commercial interests to see themselves as entrepreneurs and demonstrate the value of investing the time, energy, and finances into growing their businesses.

The second Tribe interested in developing a Business Incubator is the Confederated Tribes of the Umatilla Indian Reservation. The Confederated Tribes of the Umatilla Indian Reservation (CTUIR) is a union of three tribes: the Cayuse, Umatilla, and Walla Walla. The CTUIR consists of over 3,100 members with over half living on the Reservation (172,000 acres) and headquarters located near Pendleton, Oregon. The CTUIR’s CDFI, officially called the Nixyáawii Community Financial Services (NCFS), recently began their feasibility and economic impact studies with assistance from Points Consulting. In recent years, the CTUIR has put over $22 million dollars toward construction at the Coyote Business Park and Arrowhead Travel Plaza. The NCFS headquarters was established in 2021 within the Coyote Business Park and the CTUIR intends to construct their Business Incubator in the same area, utilizing a large open space just behind their office. The Coyote Business Park is an ideal location to advance new small business owners and entrepreneurs through the Business Incubator program. Once they have successfully passed through the incubator, the business park has available lots for the businesses to establish themselves in and grow. The NCFS Feasibility Study is still underway to assess current demand for businesses, configure the prime industry of interest for the Tribe, and analyze financial cost and impacts of the Business Incubator.

As both Tribes and their CDFIs assess the need for economic development among their members’ small businesses and entrepreneurs, the importance of preserving their culture and educating future generations about their heritage are key foundational concepts to implement within their Business Incubators. As each new cohort of businesses and entrepreneurs arise over years, retaining the support and encouragement within the community will result in a stronger and more self-sufficient population.

About the Author

Madeline Bowen — Project Assistant | Analyst

Madeline graduated with a B.S. in Business Economics from the University of Idaho in 2020. She joined Points Consulting based out of Moscow, Idaho in October 2021. There, she serves multiple roles in projects and in the company ranging from data collection, project management, client communication, and report writing.

Some selected related projects she has worked on with Points Consulting include:

• Economic Impact of Moving the Idaho/Oregon State Border (ongoing) | Claremont Institute (CA)

• Lewiston Community Strategic Plan | City of Lewiston (ID)

• Okanogan Community Needs Assessment | Okanogan County Community Action Council (WA)

• Nimiipuu Community Development Fund Feasibility Study | Nimiipuu Fund (ID)

• North Central Idaho Housing Needs Assessment | Clearwater Economic Development Association (ID)

Introducing Business Incubators into Native Communities