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Facts On Working Women

U.S. Department of Labor
Women's Bureau 

No. 89-9
December 1989


AMERICAN INDIAN/ALASKA NATIVE WOMEN BUSINESS OWNERS

American Indian/Alaska Native women business owners, like
all women business owners, are more likely to own sole
proprietorships in the services industries (43 percent)
and in retail trade (36 percent). The 6 States with the
most sole proprietorships owned by these women are
California (19 percent), Oklahoma (11 percent), North
Carolina (9 percent), Alaska (6 percent), Texas (5
percent), and Colorado (4 percent). Among sole
proprietorships owned by American Indian/Alaska Native
women: 

-- Almost 69 percent were home-based, compared with all
women-owned sole proprietorships (61 percent). 

-- About 94 percent had no employees. Women were employed
in 5 percent and minorities were employed in 3 percent of
the firms. 

-- Eighty-nine percent did not export any of their goods
or services out of the U.S. 

-- In 1982, 59 percent had less than $5,000 in sales and
28 percent had between $5,000 and $24,999 in sales. 

-- Most showed some profits. About one-fifth suffered a
net loss. Of firms owned by American Indian/Alaska Native
women, 49 percent had 1982 profits of less than $5,000;
25 percent had profits between $5,000 and $19,999; and 19
percent had a net loss less than $5,000. 

-- About 20 percent reported none of their income
originated with the firm. On the other hand, 21 percent
reported that 100 percent of their 1982 income came from
their businesses. 

-- About half had no initial capital and an additional 33
percent began with less than $5,000. 

-- Seventy-five percent of American Indian/Alaska Native
women reported their firms had no equity capital. Of
those with equity capital, the dominant source (11
percent of firms) was family. 

-- With respect to the firms' initial debt ratio, 68
percent had no debt. However, 10 percent had between 91
and 100 percent debt. Two debt sources dominate in the
case of firms owned by American Indian/Alaska Native
women. They are banks (46 percent) and family (22
percent). 

-- About 54 percent of firms owned by American
Indian/Alaska Native women in 1982 survived until 1986.
The two chief reasons given by those that discontinued
operations were insufficient profit gains (42 percent)
and personal preference (47 percent). 


Characteristics of American Indian/Alaska Native women
business owners: 

-- 82 percent were between the ages of 25 to 54

-- 70 percent were married 

-- 80 percent had been business owners for less than 7
years. About 31 percent had been in business for less
than 1 year 

-- 70 percent were founders of the firm covered in this
report. Ten percent had previously owned another business

-- 90 percent had had previous paid employment. Although
63 percent had had no managerial experience in paid
employment, 45 percent had attended business courses or
seminars. Thirty-eight percent had at least 1 year of
college. 

-- Had few role models. Only 23 percent of American
Indian/Alaska Native women business owners had a close
relative who owned a business. Of those with a role
model, 31 percent reported they had worked for a
relative. About 39 percent of all women sole proprietors
had a role model. 

Opportunities for American Indian/Alaska Native and other
women business owners should be enhanced by The Women's
Business Ownership Act of 1988 which authorizes $10
million over a 3-year period for private organizations to
provide financial, management, and technical assistance
to women business owners. Information about programs
funded under this Act may be obtained from the Office of
Women's Business Ownership in the U.S. Small Business
Administration at (202) 653-8000. 

The Office of Women's Business Ownership in the U.S.
Small Business Administration recently announced a
program to foster long-term mentoring relationships
between successful women-owned businesses and fledgling
women-owned businesses of 1 to 3 years. Additional
information about this program, Women's Network for
Entrepreneurial Training (WNET), may be obtained from the
Office of Women's Business Ownership at the number listed
above. 

Federal loans or grants for American Indians/Alaska
Natives can be obtained by contacting the Division of
Financial Assistance, Bureau of Indian Affairs, 18th and
C Streets, NW., Washington, DC 20240, (202) 343-3657. For
tribal groups or Indian organizations, financial
assistance applications are available from the
Administration for Native Americans, Office of Human
Development Services, Department of Health and Human
Services, 200 Independence Avenue, SW., 344F, Washington,
DC 20201-1000. For technical assistance or training,
contact the National Center for American Indian
Enterprise Development Headquarters, 9650 Flair Drive,
Suite 303, El Monte, California 91731, 1-800-423-0452
(outside California) or (818) 442-3701. 

_______
Sources: "Minorities, Women, Veterans and the 1982
Characteristics of Business Owners Survey, A Preliminary
Analysis," Faith Ando and Associates, Haverford,
Pennsylvania, September 1988; and U.S. Small Business
Administration. 


The Voice for Working Women for 70 Years 
1920-1990