Tribal corporations

Definition

Tribal corporations are business entities established by Native American tribes to engage in economic activities and promote economic development within their communities. These corporations are created under tribal law and can operate independently of the tribal government, allowing for flexibility in managing resources, generating revenue, and creating job opportunities while also adhering to the tribe's cultural and social values.

5 Must Know Facts For Your Next Test

1. Tribal corporations can help tribes diversify their economies, reducing dependence on federal funding and creating sustainable revenue streams.
2. They often focus on business ventures that align with the tribe's values and long-term goals, ensuring that economic activities benefit the community.
3. Tribal corporations can enter into contracts and partnerships with non-tribal entities, broadening opportunities for collaboration and growth.
4. The establishment of tribal corporations is often facilitated by federal laws like the Indian Reorganization Act and the Indian Self-Determination Act.
5. Successful tribal corporations have demonstrated that tribes can compete in various industries while preserving their cultural identity and supporting their members.

Review Questions

• How do tribal corporations enhance economic development within Native American communities?
  • Tribal corporations enhance economic development by creating job opportunities, generating revenue, and allowing tribes to diversify their economic activities. By establishing businesses that align with their cultural values, tribes can promote self-sufficiency and reduce reliance on external funding sources. This independence fosters a sustainable economy that benefits the entire community.
• Discuss the legal framework that supports the formation of tribal corporations and their operations.
  • The legal framework for tribal corporations is primarily grounded in tribal sovereignty, allowing tribes to establish business entities under their own laws. Federal laws such as the Indian Reorganization Act provide guidelines for creating these corporations, while the Indian Self-Determination Act supports tribes in managing their own resources. This framework enables tribes to operate independently from state and federal control, promoting entrepreneurial growth.
• Evaluate the impact of tribal corporations on the relationship between Native American tribes and external businesses or governments.
  • Tribal corporations have significantly impacted the relationship between Native American tribes and external businesses or governments by fostering partnerships that respect tribal sovereignty while promoting mutual benefits. As tribes engage in various industries through these corporations, they become more influential players in local economies. This shift not only helps tribes gain financial independence but also challenges historical narratives about dependency on external entities, paving the way for more collaborative efforts that respect tribal rights and cultures.

Related terms

sovereignty: The authority of a tribe to govern itself and make decisions independent of state and federal control, which is crucial for establishing tribal corporations.

economic development:

The process of improving the economic well-being and quality of life for a community, often facilitated by tribal corporations through investment in local enterprises.

tribal enterprise: A business owned and operated by a Native American tribe, which may include a variety of ventures such as casinos, hotels, and retail businesses.