Minority Business Executives (MBEs) have access to numerous benefits and services – including educational programs plus a wide range of networking opportunities. This section briefly outlines some of those benefits. For more information, we encourage you to contact the regional affiliate nearest to your company headquarters.
The National Minority Supplier Development Council’s (NMSDC) Certification Policy and Procedures are firmly adhered to by its 23 regional affiliate councils (or RMSDCs) for the certification of minority–owned, managed and controlled businesses. Standardized Procedures assure consistent certification of MBEs throughout the NMSDC Network. The NMSDC is the only national organization providing certification throughout the U.S. for ethnic diverse suppliers ready to do business.
Access — MBEs have exposure to 13,000 other MBEs to engage in business opportunities and the ability to form partnering relationship, strategic alliances or joint ventures for success.
Business Opportunity Fairs — The largest US conference focused on minority business development, MBEs present themselves to hundreds of prospective buyers, government agencies and procurement professionals in a single setting.
Capacity Building — NMSDC has created capital access opportunities for MBEs throughout the life cycle of our partnership with the Business Consortium Fund, the Growth Initiative Program and Capital Manager’s Program
Contract Opportunities – NMSDC facilitates business connections between buying agencies and MBEs, which sets the foundation for future partnering and business opportunities.
Customized executive education — The NMSDC Academy and other concentrated training and technical assistance creates stronger and sustainable businesses while developing leadership tools for our MBE CEOs.
Networking opportunities — Provide expansion of relationship–building opportunities with corporate buyers.
And a variety of other formal and informal activities to foster the development of long–term, mutually beneficial business relations – bringing corporate purchasing people together with representatives of minority businesses.
What are the criteria to apply for MBE Certification?
All of the following are required:
NMSDC’s certification standard is based on the applicant having the ability to provide the following requirements. An application, documentation and site visit is required for all applicant to ascertain the requirements are met:
- Minorities must own and control at least 51% of the business
- Minority owner(s) must serve as President or CEO (if both positions exist)
- Minority owner(s) must be active in daily management
- Minority owner(s) must be a U.S. citizen
- Minority owner(s) must have the ownership and officer position for at least 6 months
How is "ownership" established?
– Ownership is established through the documents uploaded with your application. An example of the required document is listed below based on the legal organization of the applicant business:
- 100% of the assets of a sole proprietorship
- At least 51% of the equity interests in a partnership
- At least 51% of each of the classes of voting stock and 51.0% of the aggregate of all stock outstanding determined by the percentage that would be distributed to the Minorities if the corporation was liquidated
- At least 51% of the membership interests in a limited liability company
How is "control of the business" established?
A Minority has control of the business if she / he is the final decision maker for all aspects of the business — financial, production, contracting, etc. — or she / he may have delegated that authority to an employee manager or another partial owner. A primary indication that a Minority actively participates in the management and has control of the business is that she / he meets one of the following criteria:
- 100% of the control of a sole proprietorship
- At least 51% of the control of a general partnership
- A Minority owner is the general partner (or the managing general partner if there is more than one general partner) of a limited partnership or limited liability partnership
- A Minority is the sole manager, able to appoint unconditionally the majority of managers of a manager-managed LLC or has 51% control of a member-managed LLC
Is the re-certification paperwork as involved as the original certification application?
– No, it is much easier. Unless there has been a change in the ownership, management and control of your business, very little paperwork is required. For re-certification, MBEs are required to provide financial documents, current tax forms and any updates to their certification application.
The 23 NMSDC Affiliate Regional Councils will provide the following services for MBEs without additional charge:
These services are offered at no additional charge and are not limited to the following:
- Certification process
- Pre-certification briefing
- Post-certification briefing
- Inclusion in and access to NMSDC CENTRAL®
- Discounted fees for registration at NMSDC national events
- Eligibility for participation in NMSDC development programs
- Advocacy for minority-owned businesses
An Affiliate Regional Council may offer certain services, subject to availability, to certified MBEs for no additional cost.
These services vary throughout the network and may include but are not limited to the following:
- Industry Groups and Committees
- RFPs/Business Leads/Alerts for procurement opportunities from corporate members
- eNewsletters and Calendar of Events
- Webinars and Educational Programs
- Networking and Match Making Events
NMSDC database to member database MBE matching service. There is a nominal set-up and per record fee for this service. NMSDC also offers customized search services.
An affiliate regional council may offer a variety of services or programs on a subscription basis. The suite of services offered by an affiliate regional council may reflect unique capabilities of the council, such as industry expertise, geographical proximity to desired potential customers, or development programs for certified MBEs.
Some examples of subscription services are:
- Access to top corporate purchasing agents
- Premium business connection outings and networking events
- Region or industry-specific newsletters
- Vital introductions to national corporate members
- Specialized procurement conferences & Trade Fairs
- Supplier Diversity summits and roundtable discussions
- Professional development fellowships
- Mentor-Protégé pairings and other educational or development programs
- Technical and/or financial assistance and support
Certified MBEs, who choose to do business in a service area other than the certifying council, are offered a set of subscription services from each affiliate office. Information about the services offered are located on the individual affiliate council websites.
Subscription services may be purchased as a bundle of services or on a pay-as-you go basis. Some services may be specific to a dominant industry or unique to the region or market in the service area. Other services will be based on the affiliate regional council’s ability to provide specialized services, for example, office rental or technology support.