The role of small businesses in your community

Historically, the Navajo Nation has placed a lot of importance on tribal enterprises as the driver of economic growth and job creation. While tribal enterprises do create some job opportunities in our communities, America’s small businesses – some 25 million strong – are the true strength of the U.S. economy. They create between 60% and 80% of net new jobs. Despite the demonstrated importance of small businesses in a healthy and diverse local economy, the growth rate of Navajo small businesses is less than half the growth rate for the U.S.

Reasons for stagnant growth of the Navajo small business community include the lack of infrastructure, limited small business financing, lack of support networks and mentors, and a long history of exclusion from national and global economies, which is exacerbated by broadband connectivity in our communities. Operating a formal business on the Navajo Nation means dealing with the complexity of tribal regulations. These processes are opaque, time consuming, and onerous for business owners, which often results in business owners, entrepreneurs, artisans, and vendors choosing not to formally register their business with the Navajo Nation. This decision ultimately limits their ability to grow and shortchanges Navajo communities from benefiting from the products and services they have to offer. 

Creating an environment that enables entrepreneurship and business growth is an important tool for creating sustainable economic growth at the Chapter level and alleviating poverty within our families. Poverty rates within communities on the Navajo Nation (38%) are more than twice as high as poverty rates in the state of Arizona (15%). The unemployment rate on the Navajo Nation is reportedly as high as 50% in 2016, compared to a national rate of 4.7%  that same year. 

Despite these obstacles, our community members persevere and continue to maintain their livelihoods, earn money, and buy the goods and services necessary to support their families. But we need to transition from the “survive” mindset to a “thrive” mindset. And to do that requires a significant investment in the success of our greatest asset:  our own Navajo businesses, vendors, and artisans.