New Beginnings!

That is the model of growth and development of the new face on the Standing Rock Sioux reservation. Incubators have become a part of the business landscape around the rest of the country and Sitting Bull College on the Standing Rock reservation is getting in on the action.

After years of planning, organizing and raising funds, the doors are now open to a new generation of future business owners at the Standing Rock Sioux Tribe Entrepreneurial Center. The funding came from the USDA Rural Development agency, Sitting Bull College and some private donations.

The more than $3 million facility houses space for the business education programs of the college, the Business Equity Loan Fund (BELF) program and the Sitting Bull College president, according to Jonathan Anderson, Tribal Business Information Center director.

Anderson says that still leaves plenty of space for start-up businesses looking for a way to develop their ideas.

Anderson notes that there are two, 600-square-foot areas and two 300 square foot areas still available for new business operations. “It’s not the size of a Wal- Mart,” Anderson noted, “but it provides room for most small start ups to get started and grow and be successful. We provide fax service, computers and a computer lab for larger needs, as well as instruction and workshops for the businesses. This was an overall part of the vision for a new campus. ”

Anderson says the center also provides education on accounting, pricing products and how to access additional funding. One of those methods for businesses includes the Business Equity Loan Fund, or BELF, which has already invested a substantial amount of money into reservation-based businesses.

Since its inception in 2002, the BELF has funded 20 small businesses enterprises and 18 are still in operation. The Business Equity Loan Fund has invested $660,696 into reservation- based businesses and that has directly resulted in $1.3 million of other private-sector capital getting invested in these small business enterprises.

The center provides a threetiered project-based funding system. The first tier is for total project costs of $10,000 or less; tier II is for those over $10,000 but less than $25,000; and the final tier is for total project costs exceeding $25,000. The maximum equity award is $85,000, based on projects that total $250,000. Anderson says that while projects may exceed that amount, the most a business would receive in funding from BELF is $85,000.

“We’ve helped a number of people with businesses, for sound systems, coffee shops, and computer service shops,” Anderson said. “We want to continue to fund those businesses that will have a direct impact on the reservation. The fund is designed to encourage those on the reservation to think more entrepreneurial. Starting a business is not always the fi rst choice for people and we want to change that. We want to make that happen here.”

Anderson adds that with about 96 percent of the businesses on the reservation being government, buying or expanding an existing business has become nearly impossible, making startups an extremely valuable option. Business incubation has proven to increase the success of many small businesses, and helps to keep those businesses in the community. The center also has extension services in McLaughlin, South Dakota, providing a much needed outreach program.

Anderson adds that with the Center not having to carry its own debt, more opportunities exist to create greater awareness. “We can provide rental space to the new businesses at a reduced rate,” Anderson notes.

“We can use other funds to enhance what we are doing for our clients. If they want to create and sell worldwide through an Internet service, that’s great for us too. We would like to work with any business that can provide for the needs with a variety of products or services. To me, its all about marketing, and just letting people know what you have to offer.”

Anderson says the wish-list includes some type of credit union or banking facility, office supply company, a small restaurant and an interest in bringing in the younger generation to encourage sustainability.

“We would like to gear some programs for the third, fourth and fifth grades,” Anderson said. “We have the space and while most of the country was enjoying growth of businesses and jobs, we (the reservation) didn’t have many of those options. We want to provide resources and the right kind of motivation.”

(Editor’s note: Karel Sovak is an assistant professor in the Tharaldson School of Business at the University of Mary, and co-founder of the I.D.E.A. Center, Bismarck-Mandan’s own incubator.)

Story by KAREL SOVAK