Best States for Native American-Owned Small Businesses

Every November, we celebrate Native American Heritage Month. The celebration recognizes the “traditions, languages, and stories of the Native American, Alaska Native, Native Hawaiian, and affiliated Island communities,” ensuring their histories and contributions continue to thrive each passing year.

Native Americans own about 402,582 firms and contribute $66.9 billion in total sales, boosting the American economy. Additionally, Native American-owned (NAO) businesses employ 307,933 workers and have an annual payroll of $12.9 billion.

Zac Carman, CEO of ConsumerAffairs and a member of the Kaw Tribe, explains, “For Indigenous-owned businesses, success goes beyond profits. It’s about creating opportunities within our communities and preserving our culture through entrepreneurship.”

Yet, Native American business owners still face hurdles. Carman notes, “We’ve come a long way, but challenges like access to funding, mentorship, and resources remain hurdles that many Indigenous-owned businesses continue to overcome.” This resilience, he adds, is rooted in cultural heritage and a drive to build sustainable businesses that benefit Native American communities and beyond.

To celebrate Native American Heritage Month, B2B Reviews analyzed small business data to determine where Native American-owned businesses are thriving.

We compared all 50 states and the District of Columbia across five key metrics relevant to Native American businesses to determine our final rankings. For an in-depth overview of how we finalized our list, check out our methodology section.

Top 10 Best States for Native-Owned Small Businesses

Discover why these states ranked in the top ten on our list.

Oklahoma takes first place for the best states for Native American-owned businesses in 2025. It ranked second for the first metric, with 9.7% of all businesses being Native American-owned, which is higher than the national average of 1.5%. Oklahoma had the third-highest density of NAO businesses within the Native population, at 6.9%, which is higher than the average of 5.2%.

Between 2024 and 2025, Native American-owned businesses increased by 6.1%, which is nearly double the national average of 3.1%. Oklahoma also has a significantly higher than average (0.8%) percentage of NAO employer firms, at 6%. Finally, the state has approximately 35 Native tribes that are eligible for BIA funding and services, ranking the state third for this metric.

Coming in second on our list is New Mexico. The state has the third-highest percentage of Native American-owned businesses, at 6.2%, which is significantly higher than the national average (1.5%). New Mexico also saw a higher-than-average percent increase from 2024 to 2025, with NAO businesses increasing by 10.4%. This is significantly higher than the average of 3.1% and the sixth-highest increase nationwide.

Additionally, 2.1% of all New Mexico employer firms are Native American-owned, which is the third-highest percentage and greater than the national average of 0.8%. Finally, there are approximately 22 Native tribes eligible for BIA funding, ranking it fourth for this metric.

Alaska takes third place on our list. However, the state ranks first for the percentage of small businesses, with 11.1% of all small businesses being Native American-owned. The state also has a higher-than-average NAO business density within the native population, at 5.8%.

An estimated 3.8% of all employer firms are Native American-owned, ranking Alaska second for this metric. Additionally, the state has the most eligible tribes for BIA funding, at about 229.

In fourth place is Rhode Island. This state ranks well due to its higher-than-average density of NAO businesses within the native population, at 6.6%, ranking it fifth for this metric. Additionally, Rhode Island saw a massive percent increase in Native American-owned businesses. Between 2024 and 2025, NAO businesses increased by 28.9%, the highest rate in the nation.

Claiming fifth place on our list is Nevada. The state has a higher-than-average (5.2%) density of Native American-owned businesses within the native population, at 5.7%. Nevada also scores well due to its higher-than-average estimated percentage of NAO employer firms. Of all employer firms within Nevada, 0.9% are Native American-owned. Additionally, the state ranked seventh for eligible tribes, with approximately 18 native tribes being eligible for BIA funding and services.

Coming in sixth place is Kansas. The state ranks well due to its higher-than-average percent increase. From 2024 to 2025, small NAO businesses in Kansas increased by 6%, which is higher than the national average of 3.1%. Additionally, the state has a higher-than-average percentage of employer businesses. Of all employer firms in Kansas, 0.9% are Native American-owned.

Vermont takes seventh place on our list. It has the second-highest density of NAO businesses within the Native community, at 7.1%. Additionally, Vermont saw the second-highest percent increase in NAO businesses. From 2024 to 2025, Native American-owned businesses increased by 20.4%, which is significantly higher than the national average (3.1%).

Coming eighth on our list is Montana. It ranks well due to its higher-than-average percentage of NAO businesses. Of all small businesses in Montana, 2.5% are Native American-owned, which is the fifth-highest percentage in the nation. It also had a higher-than-average percent increase in NAO businesses, at 3.3%. Finally, Montana has the sixth-highest percent of NAO employer firms, with 1.1% of all small business employer firms being Native American-owned.

In ninth place is Louisiana, with a higher-than-average density of NAO businesses within the Native population, at 5.7%. Louisiana also saw the tenth-highest percent increase of NAO businesses, at 7.9%, which is higher than the national average of 3.1%.

Rounding off our list is Idaho. The state ranks well due to its higher-than-average percent increase of Native American-owned businesses. Between the years of 2024 and 2025, NAO businesses increased by 5.7% in Idaho, which is higher than the national average (3.1%). Additionally, the estimated density of NAO businesses in Idaho within the native population is 0.9%, which is higher than the average.

Methodology

To determine which states are best for Native American-owned small businesses, the B2B Reviews research team compared all 50 states and the District of Columbia across five key metrics.

We looked at the percentage of Native American-owned businesses within each state, found the density of NAO businesses within the local Native community, the percent increase of NAO businesses from 2024 to 2025, the estimated percent of NAO employer businesses, and the approximate number of tribal entities recognized by and eligible to receive services from the United States Bureau of Indian Affairs (BIA).

States were ranked within these metrics, earning a score based on the weighted value of each metric. We then graded them on a 100-point scale, with 100 points representing the states where Native American-owned businesses are thriving.

Below is a breakdown of each metric, along with the total number of points a state can earn for that category.

Percent of Native American-Owned Small Businesses – Total 35 Points

The B2B Reviews research team compiled the total number of small businesses in each state and identified how many are owned and operated by Native Americans, using the latest available data from the U.S. Small Business Administration. We then determined the percentage of Native-owned businesses. States with a higher percentage of NAO businesses scored better.

Density of Native American-Owned Businesses – Total 20 Points

To find the density of NAO businesses within the native population, we compared the number of NAO businesses to the total Native population within each state. This percentage indicates how active the native population is in the business community. States with a higher density scored better.

Percent Increase of Native American-Owned Businesses – Total 25 Points

To determine the percent increase, we collected the total number of Native American-owned small businesses for 2024 and 2025. We then calculated the difference and determined the percent increase. We assigned higher scores to states with more significant growth.

Estimated Percent of Employer Firms – Total 5 Points

We used the latest available SBA data to identify the total number of Native American-owned employer firms. Some states lacked information for this category, so we awarded the metric fewer points to ensure those states were not negatively impacted. After collecting the number of Native employer firms per state, we compared them to the state’s total of employer firms. States with a larger percentage of employer firms scored more points.

Approximate Number of Tribes Eligible for BIA Funding – Total 15 Points

We used the most recent list of Federally Recognized Tribes and Native Villages from the National Indian Law Library to identify the approximate number of tribes eligible for funding and services from the Bureau of Indian Affairs (BIA). States with more eligible tribes earned more points.

The Bottom Line

With 402,582 firms contributing $66.9 billion annually, Native American-owned small businesses are crucial to the American economy, helping to distribute wealth within Native communities. However, there’s plenty of opportunity and room for growth within the Native business community.

This National Native American Heritage Month, we encourage consumers to make an effort to support Native-owned businesses to promote business health and growth:

• Buy from Native-Owned Businesses: When purchasing gifts, clothing, or other products, consider supporting Native-owned businesses. Buying products directly ensures that the full economic benefits go to that business rather than a third party.
• Leave Positive Reviews: In an era where reviews significantly impact purchasing decisions, leaving positive, honest, and thoughtful reviews on Google, Yelp, and other social media platforms can greatly help small businesses. Reviews build credibility, encouraging new customers to try a new vendor.
• Advocate for Policies that Support Native Businesses: To help improve funding, provide resources, and expand opportunities for Native-owned businesses, you can advocate for policies and initiatives focusing on these areas.

Consumers aren’t the only ones who can support Native American-owned businesses. In fact, Native business owners can take steps to raise awareness and boost sales during November and beyond.

• Promote Cultural Heritage: Take advantage of the month and share your unique stories, heritage, values, and more. Utilizing tools such as social media, websites, local events, and other platforms is an effective way to raise awareness for both your business and your culture.
• Collaborate with Other Native-Owned Businesses: As the saying goes, two heads are better than one. Working with other Native entrepreneurs can cross-promote both companies’ products and services. It also helps build your network and attract new customers.
• Optimize Online Presence: The online world is arguably more important than the physical one when it comes to marketing. By optimizing your online presence and collecting customer reviews, you can reach your ideal customer and increase revenue.
• Ensure your website is up-to-date and user-friendly, directing customers to revenue-generating pages.
• Utilize social media and build a company identity and voice. Use relevant hashtags, run digital campaigns, offer special promotions, and be transparent with consumers.

Supporting Native American-owned businesses helps create a diverse business environment and strengthens local communities and economies. This Native American Heritage Month, we encourage you to make an effort to support Native businesses.

Fair Use Statement

If you found our findings insightful and wish to share them, please do so for non-commercial purposes only and provide a link to this report so readers can access our full methodology.

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