Minority Business Enterprise

Minority Business Enterprise is the term used for companies which are at least 51% owned by minority group members from the United States, including African Americans, Hispanic Americans, Asian Americans, and Native Americans, including Aleuts. Ownership by minorities means the business is 51% owned by such individuals. These individuals or groups should own 51% of the stocks if it is a publicly owned business. These should manage the management and daily operations of individuals.

Minority business enterprises are typically certified by a city, state, or federal agency, where the leading certifier for these enterprises is National Minority Supplier Development Council. MBEs can self-identify, but this will not lead to official certification. Over $300 million were paid to many individuals who self-identify as Cherokee. For NMSDC’s program, minority group members are individuals who are U.S. citizens, with at least 25% part of the following members. 

1.  African – American: It comprises U.S. citizens who have origins in any of the black racial groups of Sub-Saharan Africa. Caribbean Natives of African descent are also eligible under this category of citizens. 
2.  Asian Indian: A U.S. citizen whose origins are from the Indian Asian region. The countries under this include Bangladesh, India, Indonesia, Nepal, Pakistan, and Sri Lanka.
3.  Asian Pacific: A U.S. citizen whose origins are from the Asian Pacific region is eligible for this. The countries include the following: Cambodia, China, Guam, Japan, Korea, Laos, Malaysia, the Philippines, Samoa, Thailand, Tibet, Taiwan, the U.S. Trust Territories of the Pacific or the Northern Marianas, and Vietnam.
4.  Hispanic / Latin American means a U.S. citizen of true-born Hispanic Heritage. A citizen from any Spanish-speaking region of the following countries is eligible under this category. These countries include Argentina, Belize, Bolivia, Brazil, Central America, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Guyana, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, South America, Uruguay, Venezuela.
5.  Native American: It comprises a person who is an American Indian, Eskimo, Aleut, or Native Hawaiian and regarded as such by the community of which the person claims to be a part. Native Americans must be members of a North American tribe with documentation, band, or otherwise organized group of native people who are indigenous to the continental United States. They can provide proof of themselves being a member through a Native American Blood Degree Certificate. It can include a tribal registry letter, tribal roll register number, or another similar certificate/document.

Getting an MBE certification can help your business expand your business strategy, opening doors for more opportunities and funding. You can get the following advantages if you certify your business as MBE. 

1.  Network Expansion: COnnect with other MBEs and have a chance at the joint venture.
2.  Education and Business advisory: Get access to professional development programs and grow your business skills. 
3.  Federal Contracts: Getting an MBE certification can help you compete for federal contracts and connect with potential advisors who can navigate you through the process.
4.  Access to funding: Certain programs are available that help MBEs gain capital to grow, which might not be possible in their network.
5.  Incentivizes investments and partnerships: There are state and federal tax benefits to the organizations working with MBEs.