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Minority-owned businesses can benefit from a small-owned business certification. This certification can provide access to funds and business resources that are otherwise unavailable.
Each institution has its own requirements, but you can find a wide range of institutions to collaborate with for accreditation. Once certified, it opens doors to exclusive grants, government contracts, and other financial opportunities designed to support underrated entrepreneurs.
What are classified as minority-owned businesses?
Minority businesses are usually defined as majority-owned businesses (at least 51% or more) by members of minority communities. These communities include specific racial or ethnic communities, gender communities, and sometimes veterans and veteran families.
Typically, owners of this type of business are involved in the daily business operations of the business, but eligibility varies across organizations.
Why should you be recognized as a minority-owned business?
There are perks to obtain a business certification for a small number of ownership. Certifications help you win small business loans or grants and include them in your supplier’s database. Other benefits include:
- Contract connection: Some certification programs offer contract facilitation options and provide access to business opportunities.
- Education and development resources: From additional training to technical assistance, some accreditation programs provide targeted educational resources for minority shareholder businesses.
- Networking opportunities: Certification means further exposure to thousands of companies and business ventures. It also provides opportunities for face-to-face meetings with a particular focus on minority business development.
As minority business owners often face discrimination in business lending, allowing access to a smaller pool of resources is a useful way to make fundraising more accessible to minority business owners.
How do I get a minority-owned business certification?
Several institutions and organizations offer business accreditations that are small-owned. Each type of authentication has its own specific requirements. It also provides access to a variety of funds and resources.
National Minority Supplier Development Council
The National Minority Suppliers Development Council (NMSDC) was established in 1972 to allow Asian and Indian Asia-Pacific, black, Hispanic and Native American-owned companies to equal access to opportunities to build wealth through entrepreneurship. NMSDC offers minority companies (MBES) certification. These businesses are owned by at least 51% by those who fall into one of the five minority communities that NMSDC serves.
To obtain MBE certification, companies must apply through NMSDC, the region closest to the company’s headquarters. The application can be completed online.
US Small Business Management
The U.S. Small Business Administration (SBA) has multiple programs that support minority-owned businesses and businesses that run in under-complete communities. Companies can receive certifications that are eligible for the program. You can earn SBA Minority Owned Business Certification through these two major SBA programs for minority-owned businesses.
8(a) Business Development Program
Companies owned by economically or socially disadvantaged individuals can apply for minority-owned business certification through the last nine years of business development, networking and mentoring programs.
hubzone
This certification is for businesses operating in historically underutilized business zones, and participating in the programme will help promote your business.
A disadvantaged business enterprise program with the US Department of Transportation
Another federal agency that offers accreditation for minority businesses is the U.S. Department of Transport (DOT). Provide certification through it Unfavorable Enterprise Enterprise (DBE) Program.
The DBE program is intended to resolve discrimination issues in all transportation-related contracts. They do this by trying to provide businesses owned by socially and economically disadvantaged individuals with a fair shot to secure contracts for federally funded transportation initiatives.
National LGBT Chamber of Commerce and Industry
The National LGBT Chamber of Commerce offers certified LGBTBE® programs that begin access to LGBTQ-owned businesses for competitive contract opportunities.
Local and State Government Accreditation
State and local governments may offer their own minority-owned business certifications that qualify these businesses for specific funds or business resources. the study Minority state or local institutions You can find more local certifications in your area. You can also contact the state Small Business Association.
What other resources do minority-owned businesses have?
Being certified as a minority-owned business is also a pathway to receiving financial support through grants and loans specifically allocated to this type of business. There are both Federal and private grants Specially designated for minority businesses.
To help you find the best minority-owned business certification or grant for your business, keep an eye on business resources such as:
Conclusion
Obtaining a minority-owned business certification can help level the playing field for minority business owners. There are several ways to get certified. We explore all options to see which certifications you have and provide the most useful resources for your business.
