What are the benefits of certifying your company as minority-owned?
Finding success as an entrepreneur can be difficult. A minority-owned certification gives you access to an exclusive community that provides training and resources for your industry. Training is provided through the Minority Business Development Agency (MBDA), which offers workshops, networking events, webinars, mentorships, and more to help minority entrepreneurs succeed.
You can also get minority certified with the U.S Department of Transportation (DOT). They certify minority-owned businesses that meet certain requirements to provide goods and services for transportation projects, including construction and engineering work along highways, railways, and waterways across America.
As a minority-owned business, you’re also eligible for government contracts. According to the Small Business Administration (SBA), minority businesses with certification can access thousands of dollars in federal contracts each year. This can include subcontracts, purchase orders, or other opportunities to compete for government business.
What qualifications does your business need?
Becoming a minority-owned business is more than just checking a box on a form. The minority business must meet the following qualifications:
- Be at least 51% owned and controlled by one or more minority group members
- Have its management and daily business operations headed by one or more minority group members
- Be economically disadvantaged.
- You must be a United States citizen.
- Businesses must be for-profit and based in the United States or one of its trust territories.
The minority business must also meet certain size requirements, which vary by industry sector and product/service category. Along with these qualifications, minority business owners must show documentation that includes a driver’s license, financial statements, proof of citizenship, etc.
Steps forward for your business, and closing thoughts:
What minority certification options does your company qualify for? What minority certification do I need to apply for in my industry sector and product/service category? These, among other questions, can be answered by a financial consultant specializing in minority certification. Spending an hour or two with one of these specialized consultants may be a small investment if it helps you grow your business.
Minority certification will not only benefit your company but will contribute greatly to society at large, as minority-owned businesses are more likely than not to hire minority workers and subcontract minority vendors. This creates a cycle of giving back that financially strengthens the minority community on many levels.