The Benefits of Registering As a Minority Owned Business
Minority certification can open doors to new opportunities and resources in business, helping your small company stand out in its marketplace.
A minority-owned business must be 51% minority-owned and managed by one or more minority group members; further, it must operate for profit within U.S. territory or its trust territories.
Access to Government Grants and Loans
There are various government grants and loans that can assist your business. These programs aim to level the playing field between small businesses owned by minorities, providing significant competitive edge.
SBA provides an initiative for socially and economically disadvantaged businesses, including certified minority-owned firms. This gives these types of firms access to federal contracts set aside specifically for them. Many cities also provide certification programs which give your company access to city projects and programs.
As well as government programs, there are also private grant and loan opportunities that may help your business expand. These opportunities come from organizations such as Fortune 500 companies and banks and can provide money for things such as new equipment or working capital needs.
These programs make applying easy. Just fill out a straightforward application with all necessary documents and expect an answer within several weeks - it could give your business just what it needs to get going!
Access to a Large Database of Suppliers
Accrediting your business as a minority-owned one can open doors of growth for your organization. Many government agencies mandate that certain percentage of contracts awarded be awarded to minority owned firms; becoming certified allows your business to tap into those opportunities. There are also private companies with supplier diversity programs who seek out minority owned firms that fit with them to work with, creating an additional database of opportunities that larger organizations can utilize when expanding market shares.
Additionally, there are state-specific programs designed to support minority businesses. California offers numerous initiatives focused on services and utilities. You can learn more here. Likewise, Women Business Enterprise (WBE) and Minority Business Enterprise (MBE) certifications exist as private certifications that recognize minority-owned firms; to qualify for either certification your business must either be owned at least 51% by minority owners, or have management and daily control exercised by one or more minority shareholders.
As an MBE, being certified can also help your business expand by opening doors to potential clients and partners that otherwise might not have been accessible to you. Furthermore, being recognized as such shows your dedication to diversity and inclusion within the workplace while offering you a competitive edge against businesses who do not hold MBE certification.
Access to Mentorship Programs
Registering as a minority owned business gives you access to mentorship programs designed to assist in the growth and success of your enterprise. These programs may be sponsored by government agencies or major corporations and can provide funding, resources, opportunities as well as connect you with other minority-owned companies who can provide assistance and guidance.
National Minority Supplier Development Council provides mentoring programs to assist minority-owned suppliers with expanding their businesses, such as coaching sessions, networking events, and business opportunity fairs. Furthermore, this council can introduce you to executives from companies who prioritize diversity within their supply chains.
Registering as a minority-owned business offers additional advantages, including access to special financing and working capital options. Government grants and loans tailored exclusively towards minority-owned enterprises offer you an edge in the marketplace.
Apart from government grants and loans, minority-owned businesses have access to other funding sources beyond government. Community development financial institutions specialize in offering low-interest loans for minority-owned businesses while crowdfunding platforms and minority-specific organizations may also provide the funds. Furthermore, registering as a minority-owned business helps you become visible in the marketplace while drawing clients; many large brands such as IBM and Marriott prefer working with minority-owned firms.
Access to Opportunities
As a minority-owned business, you're eligible for special funding and resources that will allow you to compete more equally against non-minority competitors. These resources may include training opportunities and access to government contracts. Each of these programs may have unique requirements and processes for applying for certification - you should take time to familiarize yourself with them prior to applying.
As well as these programs, many large corporations and government agencies set aside a portion of their contract budgets specifically for minority-owned businesses, so becoming certified can open doors to markets and clients that were otherwise inaccessible to you.
Minority-owned businesses or MBEs are defined as for-profit companies owned and controlled by at least 51% minority ownership members from certain ethnic minority backgrounds - such as African Americans, Asian-Pacific Islanders, Hispanic Americans, Indian Americans or Native Americans. Minority members must actively manage and operate the business daily.
To qualify as a minority-owned business, an application must include documentation of ownership, management and control. An interview will then be scheduled with the National Minority Supplier Development Council and you must meet other qualifying criteria such as background check requirements and financial stability checks. Typically this approval process for minority-owned businesses takes up to 12 weeks from start date.
