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Promoting Cultural Diversity During Native American Heritage Month

Powwow celebration with traditional Native American dance

November is Native American Heritage Month, which was created in 1990 through a presidential proclamation and has continued to be observed ever since. The month is dedicated to showcasing the immense importance of this group, as it represents the rich history, culture, and contributions of Indigenous peoples in the United States.

During the month of November, awareness is spread about Indigenous history, contemporary Native issues, and the accomplishments of Native Americans who have enriched our culture.

Why celebrate Native American Heritage?

As a tribally owned company, our team is passionate about protecting tribal sovereignty and growing economic prosperity throughout Indian Country. We want to share a few important reasons to recognize and celebrate Native American heritage:

1. Acknowledge the historical & ongoing contributions Native Americans have made to the nation.

From agriculture and medicine to language and art, Native Americans have made significant contributions to American society. Acknowledging and celebrating their heritage allows us to honor their achievements and recognize their importance in shaping our collective identity.

2. Foster cultural awareness and appreciation.

It allows individuals to gain a deeper understanding of Indigenous traditions, values, and perspectives, and this knowledge can lead to greater respect and appreciation for the diverse cultural heritage that exists within the United States.

3. Address historical injustices and promote social justice.

Throughout history, Native Americans have faced colonization, forced assimilation, and marginalization. Recognizing their heritage is a step toward healing historical wounds, promoting cultural preservation, and empowering Native American communities.

How to Celebrate Native American Heritage

Although it’s nice to have a month dedicated to celebrating and honoring Native American heritage, there are many ways you can continue acknowledging Native Americans throughout the entire year. Here are a few ideas to help you get started:

Attend cultural events

Look for local events, powwows, or cultural festivals that celebrate Native American heritage. By attending these events, you will be able to experience traditional dances, music, food, and crafts.

Educate yourself

One of the best ways to celebrate Native American heritage is to educate yourself about their history, culture, and contributions. Read books, watch documentaries, or visit museums dedicated to Native American history.

Volunteer and support Native American organizations

Get involved with local Native American organizations. Offer your time and support by volunteering at community events, fundraisers, or educational programs that promote Native American heritage and empower Indigenous communities.

Support Native American businesses and artists

According to U.S. Census Bureau statistics, Native American-owned businesses contribute over $33 billion to the U.S. economy every year and employ over 200,000 people. We encourage you to seek out Native American-owned businesses and artists and support their work and help sustain their livelihoods.

Amplify Native American voices

Give platforms and opportunities for Native American voices to be heard. Share books, articles, art, and other resources created by Native Americans to promote their perspectives and insights.

 

We encourage you to approach Native American heritage with sensitivity and respect. We feel that engaging in cultural appreciation rather than cultural appropriation is crucial to ensure Native American traditions and identity are honored and preserved.

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A Case Study in Cultivating an Entrepreneurial Culture

The Situation:

DWH partnered with the Nottawaseppi Huron Band of the Potawatomi (NHBP), a federally recognized tribe in western Michigan, to cultivate an entrepreneurial culture among its members. Recognizing the untapped potential within the community, NHBP leadership sought to empower its members with the tools, knowledge, and resources necessary to launch, acquire, or scale small businesses.

The Solution:

Instead of offering a one-size-fits-all solution, DWH deployed a nuanced, multi-phase approach tailored to the specific needs and aspirations of NHBP members:

  • Needs Assessment: We designed and circulated a comprehensive survey to gauge interest, evaluate current skill levels, and understand the entrepreneurial dreams of the community members.
  • Curriculum Design: Using the survey insights, we crafted a targeted curriculum complete with topics and training materials that addressed the unique needs of the tribe.
  • Educational Bootcamps: Quarterly full-day workshops were planned, offering structured learning experiences and opportunities for attendees to provide feedback.
  • Personalized Mentoring: For those who had successfully completed the educational sessions, in-depth mentoring opportunities were made available to provide hands-on experience and guidance.

The Outcome:

The COVID-19 pandemic brought unprecedented challenges, disrupting our planned in-person educational boot camps. Undeterred, we swiftly transitioned to a remote learning model. Despite this pivot, we successfully conducted extensive surveys that gave NHBP an actionable roadmap to harness entrepreneurial talents and interests within their community. All remote training sessions were recorded and archived, serving as a lasting educational resource for the tribe.

 

 

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The Importance of Strong Due Diligence in Tribal Acquisitions

As more Tribal Nations use Economic Development Corporations (“EDC’s”) to take on larger and more sophisticated investments, it is necessary to develop an equally sophisticated due diligence process.  This process must go beyond simply investigating the transaction and expand to seek a thorough understanding of the operations and infrastructure of the Company as well as the impact of any transition with ownership and/or leadership.

A company’s value is based on its ability to sustain and improve cash flows while managing business risks.  Ownership and leadership transitions create risk to the company and its cash flow.  Crafting a due diligence process that helps the Tribe understand the factors in the business that impact cash flow, stability and growth opportunities (and how a transaction would affect these) will help protect the Tribe and increase the likelihood of a successful acquisition.

Why is due diligence so important?

Due diligence is a process for doing a thorough investigation to better understand the investment and identify potential risks and opportunities while validating that the purchase price will allow the new entity to meet the required returns.  For the most part, due diligence seeks to accomplish three things:

1. Validate

First and foremost, due diligence is there to verify that the information provided by the seller is truthful and correct.  This includes the financial statements (or any adjustments thereto), contracts, legal documents, operations of the company, or the legal standing of the company.  This part of the due diligence process verifies the basis for the purchase price.

2. Understand Risks

Second, due diligence should be used to understand, assess and qualify the risks associated with the investment opportunity.  Some examples of potential risks to examine are:

  • Will an ownership change have an impact on the ability of the company to perform as it has in the past?
  • Who are the key personnel who understand and can manage the operations on a day to day basis?
  • What is the risk of losing key staff with a change in ownership?
  • Does the remaining management and/or ownership share the EDC’s vision for the company moving forward?
  • How vital is the company to its customer base?  How strong is the supply base?
  • What will be the capitalization requirements for the company at closing and into the foreseeable future?

3. Prepare for Transition

Third, due diligence helps develop a plan for the transition, or post-merger integration, of the company into the Tribal EDC’s portfolio.  Some key things to consider include:

  • Is it possible to mitigate or eliminate any of the risks identified during due diligence with the transaction closing and transition?
  • What legal jurisdiction and UCC code will the new entity operate in?
  • What are the tax implications of these decisions?
  • How will key strategic decisions be made for the new entity once they are under the management of the EDC’s holding company?
  • What changes will need to be made to the new entity’s operating agreement, HR policies and financial systems in order to keep it in compliance with the EDC’s requirements?  This is especially important for Federal 8(a) contracting companies.

The importance of a strategic plan:

While the steps mentioned above are extremely important, they become nearly meaningless if the EDC does not have a thorough strategic plan to guide the acquisition process.  A strategic plan provides direction and structure to the complicated task of performing due diligence by:

  • Outlining the investment criteria (i.e. – controlling interest requirements, industry or sectors to be sought out or avoided, minimum expected  returns, etc).
  • Alignment of key stakeholders and set the expectations of any investment (does the due diligence show that the projected future performance meets the expectations set by the strategic plan?).
  • Define the priorities of the due diligence investigation (emphasis on financial, operational, leadership, future opportunities, historical results, etc).
  • Define how due diligence will be coordinated and who is involved in the approval process.

Any investment, especially a direct investment in an operating company, is an exciting but complicated process.  Due diligence is a key factor to provide an investment the best chance of succeeding and providing positive returns.  Having a strong due diligence process, transition plan, strategic plan and qualified advisors in place before an acquisition will help ensure an EDC obtains all necessary information to make a well-informed decision.

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Evaluating Economic Development Opportunities in Indian Country

Indian Country

Last week, DWH traveled to Portland, Oregon to attend the 37th Annual Native American Finance Officers Association (NAFOA) Conference. The NAFOA conference provides attendees with opportunities to “engage directly with tribal leaders, professionals, and influential federal agencies about economic and financial issues facing Indian Country.” (nafoa.org). Attendance at this conference is crucial for DWH because our majority shareholder is Waséyabek Development Company, LLC (WDC), the economic development arm of the Nottawaseppi Huron Band of the Potowatomi. The conference is a chance to not only connect with members of our Tribe, but to also meet other Tribal members throughout the nation and share our experiences working in economic development.

Clayton Vanderpool speaking at NAFOA. Photo courtesy of James TenBrink, WDC.

The two-day event was packed with sessions, panel presentations and cultural activities for attendees. DWH Managing Director (and former WDC Board Vice Chair) Clayton Vanderpool participated in a panel that focused on how to create a foundation for a Tribal Economic Development Company (EDC) that would set it up for future success.

WDC and DWH are proponents of following the Harvard model as a best practice when it comes to creating stability for a Tribal EDC. This structure coupled with a consistent and open communication schedule will help create stability for the EDC and ensure the Tribe’s mission, vision and values are being maintained.

Key Points in Creating a Tribal EDC:

1) Before making any investments, a Tribal EDC needs to define what it IS and what it is NOT. Examples would be deciding if it wants to invest in startups, act as venture capital firm, make passive or private equity investments, or pursue an SBA 8(a) certification and provide products and services to the federal government. It must also determine funding sources and resources it is comfortable using.

2) Tribes need to define a decision-making process and the various levels of authority for the EDC’s subsidiaries, CEO, and Board of Directors. Ultimately it will need to decide at what point the Tribal Council’s and/or Board’s approval will be required on transactions or strategic decisions.

3) The EDC needs to take the investment parameters and funding resources and generate a financial model showing return and risk scenarios. The purpose of this model will be to ensure the investment philosophy and resources available will create a return that meets the Board and Tribal Council’s expectations. If the model and the results do not meet expectations, then one (or even all three) of the inputs (investment criteria, funding/resources and expectations), will need to change to ultimately create strategic alignment throughout the organization.

Interested in learning more? Connect with us.