Author: Linda Light | July 10, 2023

Do you know how to get certified as a minority-owned business? It's one way to grow your company, whether you're a seasoned business owner or you're just starting up as a roofing contractor. It can also help you win bids. For instance, some government agencies and corporations set goals for conducting business and buying from minority-owned companies. Becoming certified immediately increases your business' appeal.

Find out how to get certified as a minority-owned business and how to take advantage of all that it offers.

What Is a Minority-Owned Business?

In general, being a minority-owned business means that your business is at least 51% owned by an individual or individuals who are Black, Asian, Hispanic, Native Alaskan or Native American. Or, in the case of a publicly-owned business, at least 51% of the stock is owned by one or more individuals from these communities.

Certification guidelines may also stipulate that the owner must be in charge of the business management and daily operations, or that the business owner must be a United States citizen. Women-owned businesses fall into a separate category, but becoming certified as a woman-owned business often involves similar qualification requirements.

Why Get Certified as a Minority-Owned Business?

Minority-owned businesses that are certified can take advantage of numerous public and private programs created for such businesses. This certification not only opens up favorable contract opportunities, but it also puts your business in front of large corporations, gives you access to business training opportunities and provides a new network of contacts. In addition, it offers:

• Eligibility for corporate and government contracts.
• Ability to compete for set-aside and sole-source contracts.
• Eligibility for distinguishing business awards.
• Technical assistance and training.
• Marketing advice and assistance.

This certification could also help you attract the attention of corporations looking to work with minority- and women-owned businesses.

How Do You Get Certified?

Now, the big question: How do you get certified as a minority-owned business?

The type of certification you pursue will depend on the programs you want to participate in, and there are several entities you can apply through.

The federal government, state and local agencies and private sectors all have different types of certifications, and each has a formal certification process and criteria. There will be overlap between some of the certifications, but it is best to look at each one separately before jumping in.

• The Small Business Administration, a federal agency, offers information for minority-owned businesses along with a certification called 8(a). This designation means your business will be eligible to win federal contracts reserved for "small disadvantaged businesses." The good news is that the federal government has a goal of awarding at least 5% of its contracting dollars for businesses with 8(a) designation. However, the designation is economic and not solely for minority-owned businesses.
• Some states, such as Michigan, have their own MBE certification process that enables your business to compete and win contracts from state agencies, boards and commissions. Other states, such as Idaho, offer special grants and other assistance for these businesses. As with the federal government, some states have goals of awarding a certain percentage of contracts to minority-owned businesses.
• City-level certifications exist in some places. Chicago, for instance, has its own program where approved businesses have access to bid on large city contracts, and so does Boston. Check with your local city officials about programs in your area.
• The National Minority Supplier Development Council (NMSDC) has programs for minority-owned businesses who want to connect with companies in the private sector. The NMSDC has a large list of corporate members and private sector companies you may be able to win contracts with.

While it might seem like an involved process, exploring certification as a minority-owned business is well worth it. Becoming a certified minority-owned business can open up many opportunities to you in the way of work contracts and additional funding. It can also give you exclusive access to other competitive advantages.

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