Are You Opting for MBE Application

MBE or Minority Business Enterprise defines a  specific  group of  business owners and  entrepreneurs who are exclusively  American. There are MBE's involved in all sorts of products from electronic to environmental. While the acronym has become more and more popular over the years, a lot of people still don't understand what it is, how different it is from non-MBE's and what makes it significant. Moreover, why someone would ever need the MBE application when they are already having  some other  certifications qualifying  their entity?

What’s  Exactly  an MBE?

Technically, an MBE is any type of business which is owned predominantly by any American citizen belonging to any of the four government-recognized ethnic groups in the US, namely African Americans, Asian Americans and East Asian Americans, Hispanic Americans and Native Americans, including Aleuts.   In order  to  verify their  identity, MBE application  is  required.  

What is the government's role in the institution of an MBE?
In its literal sense MBE or Minority Business Enterprise, is nothing but a business entity that is solely owned by any American citizen. In terms of identification, it can be created individually or independent of the government. However, most MBE's are certified by a government agency, whether on a city, state or federal level and the major certifier is the National Minority Supplier Development which has 35-40 branches across regions. To get this certification you need to submit your MBE application, so that your identity is aptly verified.

How MBEs Can be a Part of Mainstream Economy?

Because this type of undertaking is essentially intended for business, the most obvious reason for it is for small-scale businessmen to be able to hook up with bigger companies so they, too, can have access to the resources owned by these industry top guns. There is another notion, however, with regards to why people enter this endeavor. It is said that the purpose is to boost small players' chances of acquiring contracts through related government mandates. This is, of course, a more superficial understanding of the significance of MBE's. If you are planning to amp up your chances of winning contracts, first of all opt for MBE application from the registered authority.  

 
How does a business get MBE-certified?

There are a few requirements for a business to be MBE-certified. One of the first is for the business owners to prove that at least 51% of the entity is owned by a minority and that the controlling minority is capable of running it day-to-day. This means the owners must be directly involved in daily operations. Otherwise, certification will not be granted. There will be a pre-qualification form to be obtained from the local Chamber of Commerce or from the US Department of Commerce Minority Business Development Agency.

There will also be a fee which will depend on the business annual gross sales and  need to be submitted  along  with your MBE application. The fee, however  varies between $ 250 and  $ 500. Once these steps have been completed, an application form has to be filled out. Information to be supplied in this form includes how the business was founded as well as its legal and organizational structure. Site inspection is the final requirement of the Minority Business Development Agency. Representatives from the MBDA will evaluate the physical infrastructure of the business and all other aspects of the business from operational to accounting.