Economic Impact of Tribal Businesses

In today's interconnected economy, the contributions of tribal businesses often go unnoticed, yet they play a pivotal role in both local and national economic landscapes. Tribal businesses are not just enterprises but engines of growth, cultural preservation, and community development. In this blog post, we will explore the economic impact of tribal businesses, highlighting their contributions through data and real-life examples.

Driving Local Economies

Tribal businesses significantly bolster local economies through job creation and infrastructure development. For instance, in Oklahoma, tribal governments employed over 54,000 people in 2019, supporting a total of 113,442 jobs when accounting for indirect and induced employment. The direct economic activity of tribes in Oklahoma generated $8.3 billion, with the total economic impact, including secondary effects, amounting to $15.6 billion (Tribal Business News).

Example: The Cherokee Nation in Oklahoma employs 11,000 people across its government and subsidiaries. Beyond providing jobs, the Nation invests in local infrastructure, such as fire trucks and funding for municipal projects, highlighting the broader community benefits of tribal businesses (Tribal Business News).

Economic Contributions and Investments

Tribal businesses contribute billions to the economy through employee compensation, purchases of goods and services, and investments in infrastructure. For example, in Michigan, non-gaming tribal businesses generated nearly $288.8 million in economic impact in 2019. When including gaming activities, the total economic contribution swelled to $3.4 billion (Tribal Business News).

In Oklahoma, tribal gaming facilities contributed $148 million to the state in 2019 through exclusivity agreements, with $130 million of this going to Oklahoma’s revolving education fund. Since 2006, tribal gaming revenues have contributed $1.8 billion in exclusivity fees (Tribal Business News).

Example: The Jamestown S’Klallam Tribe collaborated with various partners to restore Jimmycomelately Creek, saving a crucial salmon run. This environmental project not only preserved natural resources but also created jobs and promoted tourism in the area.

Diversification and Economic Independence

Tribal businesses are diversifying into various sectors, including gaming, hospitality, retail, and natural resources. This diversification strengthens tribal economies, making them more resilient to economic fluctuations. The economic independence gained from diverse revenue streams allows tribes to reinvest in their communities and reduce reliance on external funding.

Example: The Tulalip Tribes have developed a thriving business portfolio that includes the Tulalip Resort Casino, Quil Ceda Village retail center, and various entertainment venues. These enterprises generate significant revenue, which gets reinvested in health, education, and housing projects for the tribal community.

Cultural and Community Impact

Tribal businesses do more than generate revenue; they preserve and promote cultural heritage and community well-being. Investments in cultural initiatives such as language immersion programs, museums, and public cultural events foster a stronger sense of identity and community among tribe members.

Example: The Colville Tribes' Waterfalls language immersion program and the annual canoe journey are vital cultural initiatives that reinforce traditional practices and engage the wider community, promoting understanding and respect for Native cultures.

Final Thoughts

The economic impact of tribal businesses is profound and multifaceted. By creating jobs, investing in infrastructure, and fostering cultural and economic growth, tribal businesses are vital contributors to both local and national economies. Recognizing and supporting these enterprises is crucial for sustaining their positive impact and ensuring the continued prosperity of tribal and surrounding communities.

At Marlin & Associates, we understand the unique opportunities and challenges of engaging with tribal businesses. Our expertise and connections can help your business navigate and thrive in these promising markets. Contact us today to learn how we can help you build successful and sustainable partnerships with tribal communities.