Is MBE Right for Your Business?
A Minority Business Enterprise a business entity that is majority-owned and operated by a U.S. citizen or legal resident. A minority group member is an individual who is at least 25% Asian-Indian, Asian-Pacific, African American/Black, Latin or Hispanic. For Native Americans, a tribal card and a blood degree certificate are required. This certification proves and authenticates that a business is truly minority-owned.
For businesses that are publicly traded entities, they may be subjected to diversity requirements for shareholders and employees. The standard requirement is a minimum of 51% ownership by a qualifying minority. In addition, the entity’s management/operations must to designated to qualifying minority groups.
NOTE: To qualify for this certification, businesses must operate as a for-profit model and must physically reside within the U.S/territories.
Acquiring an MBE certificate is an important step in legitimizing your business. This certification can be sought through various channels, such as the Small Business Administration (SBA) for federal recognition, State or local governments for local certification, or private sector entities for third-party recognition.