Minority Business Enterprise (MBE) Certification Requirements

If you are a small business owner that is interested in attaining the MBE certification here are some key points that you should consider before taking on this project. Minority Business Enterprise Certification is the process that a small business claiming to be a minority owned business must undergo to validate the company's majority (51%) ownership by a minority or group of minorities. This minority individual or group of individuals must own, manage and be involved in the daily operations of the business enterprise. Very similar to the Woman Owned Business Enterprise Certification (WBE), the MBE exists on various levels. If you qualify for this minority business certification, a great place to start your search is on the local level. Many cities and counties have an MBE program that would benefit your business with local government contracts. If your business is able to offer services on a state wide level you should look into your specific states program. Any state program would allow your business to participate in bidding and contracting on the federal level for your state. If federal and local government contracts is not what you are interested due to your service and product offerings your small business may benefit most from the national certification.



When considering the national MBE program it is most beneficial to certify with the National Minority Supplier Development Council (NMSDC). The NMSDC exists to provide a direct link between corporate America and minority-owned businesses. The NMSDC is one of America's leading business membership organizations. It was chartered in 1972 to provide increased procurement and business opportunities for minority businesses of all sizes.



Minority business certification is now more important than ever. Major corporations include supplier diversity as a core business strategy, and use minority business certification as a tool to validate and seek qualified businesses. Local and statewide government agencies are mandated to award different percentages of their contracting and bidding opportunities to minority owned businesses. It is crucial to understand that while the process for certification can take approximately 30 - 90 days the benefits certifications render far outweigh the time and effort invested.

If you are still considering whether you qualify for certification please feel free to reference this quick four step guide:

1.Ownership - A minimum of 51% ownership by one or more socially disadvantaged individual(s).

2.Minority Status - Certain groups are presumed to be socially disadvantaged (variations also exist on the state and federal levels): African American, American Indian/Native American, Asian, & Hispanic

3.Control - The minority applicant(s) must have experience relating to the specific products and/or services provided by the firm. It is also crucial that this applicant or group of applicants hold the authority to make day-to-day and long term business decisions for the firm.

4.Size - The applicant firm must meet the small business size standards established by the U.S. Small Business Administration (SBA). Size standards are measured by average annual gross receipts (ranging from $750,000 to $35,500,000 depending on industry) or average number of employees (ranging from 500 to 1,000 depending on industry).



If you need additional information about the NMSDC please visit their website by accessing the following link: http://www.nmsdc.org/nmsdc/



If you need additional information on the SBA's small business size standards please visit their website by accessing the following link: http://www.sba.gov/contractingopportunities/officials/size/index.html



Nina Lopez is a for-profit business consultant at BizCentral USA. BizCentral USA serves as an all-encompassing solutions and services center for startup, small and mid-sized businesses. For more information visit: www.BizCentralUSA.com.