1. SOCIAL ENTREPRENEURSHIP INITIATIVE (SEI) PRESENTATION NATIONAL INDIAN GAMING ASSOCIATION WEDNESDAY, MAY 14, 2014 Presenters Gary E. George, CEO, Wildhorse Resort & Casino Confederated Tribes of Umatilla, Oregon Lakota Mowrer, Assistant Director, Four Bands Community Fund, Cheyenne River Sioux, South Dakota

2. SEI AGENDA Historical Framework Indian Gaming Development of a Social Entrepreneurship Framework Application of the Social Entrepreneurship Framework Questions & Comments

3. INDIAN GAMING 237 out of 558 Federally Recognized Tribes 28 States 442 Tribally Owned Casinos Helping Indian Nations recover from centuries of Economic and Social Neglect (Source NIGA)  Majority of Gaming Tribes are not “Rolling in the Dough.”  Proximity to Population Centers, approximately 25 Tribal Gaming Operation generate 56% of the total portion of Indian Gaming Revenue ($27.2 Billion industry)

4. NIGA NIGA established the American Indian Business Network to strengthen Tribally owned businesses and Indian Entrepreneurs! “Ultimately the American Indian Business Network (AIBN) is about empowering Native – Owned businesses.”

6. TO HAVE LASTING AND SIGNIFICANT CHANGE Create Sustainable Communities by Developing Core Infrastructure  Stable Government  Health  Education  Employment The Problem… Better Community Services require sustainable Revenue.

7. SEI MODEL Share our model to effect positive change in Indian Country. Created a Hybrid Tribal Model – not Government, not for- profit or non profit, but contains elements of all three. Acknowledge Tribal Differences, but all Tribes cope with challenges  Self Governance  Protection of Sovereignty  Unique Resources  Tremendous Value

8. SEI MODEL Increase Capacity of Tribes Provide a Planning Tool to improve Community Infrastructure Guiding Principles and Values A Pathway to rebuilding our sustainable communities!

9. THE SOCIAL ENTREPRENEURSHIP INITIATIVE 2011-2013

10. MAIN COMPONENTS OF THE INITIATIVE WHO:WHAT: 9 Native organizations chosen Organizational capacity to form a learning and support and pilot projects improvement cohort plus 1 intermediary. WHERE: 8 meetings across the NWAF Footprint: *Minnesota, Iowa, North Dakota, South Dakota, Montana, Idaho, Washington, and Oregon

11. GOALS OF THE SOCIAL ENTREPRENEURSHIP INITIATIVE 1) Increase the knowledge, capacity, and leadership development 2) To strengthen existing and new relationships 3) Increase knowledge of social entrepreneurship programs

12. WHAT IS SOCIAL ENTREPRENEURSHIP? “A for-profit or non-profit venture that uses the fundamentals of a business model to help solve a social problem in the world.” DOES SOCIAL ENTREPRENEURSHIP OCCUR IN INDIAN COUNTRY?

13. WE ARE SOCIAL ENTREPRENEURS!

14. DEVELOPMENT OF SOCIAL ENTREPRENEURSHIP FRAMEWORK FOR INDIAN COUNTRY

15. FRAMING THE CONVERSATION YESTERDAY, TODAY & TOMORROW: impact that will last through seven generations SELF-REPLICABLE & VIRAL: demonstrate the path toward ensuring greater self-sufficiency REALISTIC & ADAPTABLE: tap into and unleash the true potential in our people SYNERGISTIC & INNOVATIVE: leverage synergies across our communities to create the greatest impact The importance of shared principles: Unifies our thinking. Shapes our decisions. Helps to frame and communicate our purpose.

16. 132 4 What are the principles we will use to guide Social Entrepreneurship? What set of tools will be developed? What impacts will be achieved? How will we organize to achieve our intended impacts? Our Guiding Principles YESTERDAY, TODAY & TOMORROW SYNERGISTIC & INNOVATIVE REALISTIC & ADAPTABLE SELF-REPLICABLE & VIRAL How impacts will be delivered Tools developed How impacts are measured EMPLOYMENT EDUCATION SECURITY CIVIC ENGAGEMENT What will be focused on over the next six months: 1. 2. SOCIAL ENTREPRENEURSHIP FRAMEWORK

17. APPLICATION OF THE FRAMEWORK FOUR BANDS COMMUNITY FUND

18. FOUR BANDS COMMUNITY FUND: WHO WE ARE Native Community Development Financial Institution (CDFI) incorporated in 2000 and became certified by US Treasury CDFI Fund in 2002 Serve the Cheyenne River Sioux Indian Reservation in North-central South Dakota Serving Native Entrepreneurs in other persistent poverty counties in SD through partnerships

19. WHO WE SERVE 62% of the households are below the poverty level 45% of the population is below the age of 18 Few have educations beyond high school Easy targets for predatory lenders –avg credit score 100 points lower than national average Little expertise with banks or money management Economic dependence vs. independence

20. CURRENT MODEL FOR SOCIAL CHANGE Government $$$ Philanthropic $$$ Arts & Culture Social Welfare Healthcare Education

21. 132 4 What are the principles we will use to guide Social Entrepreneurship? What set of tools will be developed? What impacts will be achieved? How will we organize to achieve our intended impacts? Our Guiding Principles YESTERDAY, TODAY & TOMORROW SYNERGISTIC & INNOVATIVE REALISTIC & ADAPTABLE SELF-REPLICABLE & VIRAL How impacts will be delivered Equity Bundles How impacts are measured EMPLOYMENT Increase in number of livable wage jobs on Reservation EDUCATION Increase in financial capability of our reservation families CIVIC ENGAGEMENT Outflow of consumer will decrease due to availability of new goods and services. What will be focused on over the next six months: 1. Seek Investment 2. Recruit, Assess, and Select participating native entrepreneurs 3. Provide loan capital, TA, and equity bundle FOUR BANDS BAU TO WOW FRAMEWORK

22. IMPROVED SELF-SUSTAINING MODEL Access to capital Provide loans and equity bundles Start a business on the rez New goods and services offered Payment on loan returns to revolving loan fund Money available for re-lending and ops. Social Need Action Direct Result Benefit Opportunity Sustained Value

23. TRANSFORMING OUR ECONOMIC LANDSCAPE Increased our loan deployment from $800,000 in 2012 to $1.8 million in 2013 Increased job creation from 42 in 2012 to 70 in 2013 Clients experienced a 68 point increase in their credit score in 6 months! For every dollar invested by a funder, Four Bands and the entrepreneur leverage $15!

24. NEXT STEPS Approach Native CDFI Network and be placed on their Board Agenda and propose the creation of a social entrepreneurship committee Approach National Indian Gaming Association for socially responsible investing opportunities and to purchase from native vendors. Approach academic institutions, such as Washington University in St. Louis’s Center for Social Development, to develop technical assistance component

25. 132 4 What are the principles we will use to guide Social Entrepreneurship? What set of tools will be developed? What impacts will be achieved? How will we organize to achieve our intended impacts? Our Guiding Principles YESTERDAY, TODAY & TOMORROW SYNERGISTIC & INNOVATIVE REALISTIC & ADAPTABLE SELF-REPLICABLE & VIRAL How impacts will be delivered How impacts are measured What will be focused on over the next six months: 1. 2. 3. 4. 5. SOCIAL ENTREPRENEURSHIP FRAMEWORK

26. QUESTIONS & COMMENTS Lakota Mowrer Assistant Director Four Bands Community Fund lakota@fourbands.org www.fourbands.org Gary George CEO Wildhorse Resort & Casino gary.george@wildhorseresort.com www.wildhorseresort.com