MBE Certification
Dear Readers,
With the recent discussion about building a new airport in Kansas City, there has been increased talk about minority business certifications. Gail asked us, “so why is it important to be MBE certified?” Most recently, we have been working with a couple, who owns a painting business that is expanding from Wyandotte County to Kansas City, Missouri on their additional MBE certification.
Pedro: Corporations, the federal government, and state agencies all want to do business with minority-owned companies. To meet their objectives, private and public sector firms search for minority-owned suppliers through programs that have formal certification processes. And the bottom line is, if you aren’t certified, then you can miss out on business. What do you think Josh?
Josh: I agree. Many states and cities have minority-owned business programs, which are often referred to as Minority Business Enterprise (MBE) programs. Certification can significantly help your business gain access to government contracts. Whether you are just starting a business or your company is already established, you can drastically benefit from these “set aside” goals to gain revenue.
Pedro: There are revenue benefits for taking the time to get certified, and there are also the reputational benefits. In addition to greater earnings potential, MBE certification enhances your businesses’ professional image and reflects your achievement. You can – and should - proudly wear this credential of MBE certification.
Josh: That’s so true. I actually reached out to one of my respected friends, who we worked with when collaborating with the City of KCMO on the For Change Initiative, which is a program that provides special financing to certified city contractors. Phillip Yelder, director of Human Relations at KCMO, helped educate us a bit about the importance of being MBE certified. Philip, what are your thoughts on MBE certification, who is actually eligible, and what should a business do that wants to get certified?
Phillip Yelder: On all City projects above a certain dollar amount, the Kansas City Human Relations Department assigns goals for the participation of minority and women-owned businesses. If you aren’t a certified business, then you miss the opportunity to participate. At least 51 percent of the business must be owned by a minority and a U.S. citizen (or lawfully admitted permanent resident of the U.S.) The minority business owner must hold the highest position in the company and be capable of exercising direct control over the daily, as well as long-term decisions regarding the management, policies and operations of the for-profit business. I’ll admit that the process of becoming certified is a bit tedious, but it’s worth it. Check out our website, kcmo.gov/human relations/, for more information or better yet, sign up for one of our Minority Women Disadvantaged Business Enterprise (MWDBE) certification workshops, which are held on the last Tuesday of every month from 1-3 p.m. at City Hall. The next workshop is May 29.
Pedro: That’s good advice. I hope some of these businesses take advantage of that workshop. We’ve talked a lot about MBE certification, which is definitely important for government work. I think it’s also worth noting that the Small Business Administration’s 8(a) Business Development Program helps minority-owned companies win contracts in the public sector too. In order to comply with the Small Business Act, certain government agencies need to complete their federal contracts with 8(a) participants. In some instances, contracts can be awarded to 8(a) participating companies. However, if your business wants to connect with private-sector buyers, you should contact NMSDC (National Minority Supplier Development Council). NMSDC has many corporate members and connects to over 17,000 minority-owned suppliers.
If you are a small business owner, then please take the time to get certified so you don’t miss out on business! We’d love to hear from you. We are offering $100 to the reader whose question is selected next. Please submit your business questions to together@lead.bank.
