Benefits of Certification for Small Business Owners
Certification opens new opportunities with federal, state, and local governments, as well as large corporations that allocate a percentage of contracts to certified small businesses. In addition to increased access to contracts, certification often provides exclusive networking, training, and educational programs for business owners. It may also make you eligible for loans, grants, and other resources specifically designed for certified entrepreneurs, including management and technical assistance programs. Additionally, many corporations have supplier diversity initiatives that prioritize certified small businesses for partnership and procurement opportunities.
What Are the Certification Options?
There are various certifications available for small businesses, including those owned by minorities, women, veterans, and LGBTQI+ individuals. Additionally, certifications are offered for economically disadvantaged business owners, businesses located in underutilized areas, and those that meet specific environmental standards. These certifications help businesses access targeted opportunities and resources. Here are a few organizations to get your started:
National Minority Supplier Development Council (NMSDC) MBE Certification Program
- One of the largest and most widely recognized diversity certifications is the certification for minority business enterprises (MBEs) issued by the NMSDC.
- To qualify as an MBE, businesses must be at least 51% owned by members of minority groups as defined by the NMSDC as Asian-Indian, Asian-Pacific, Black, Hispanic or Native American.
- For more information on eligibility and how to apply, visit nmsdc.org/mbes.
8(a) Small Business Certification
- The Small Business Administration (SBA) offers the 8(a) Business Development Program to create opportunities for small businesses owned by individuals who are socially or economically disadvantaged. Through this program, the federal government sets aside at least 5% of its contracting dollars for 8(a) businesses, allowing them to compete for both set-aside and sole-source contracts.
- To be eligible, a business must meet several criteria, including being at least 51% majority-owned and controlled by individuals who are socially or economically disadvantaged.
- For more information on eligibility and the application process, visit MySBA Certifications.
State and Local Government Certifications
- Local and state governments also offer certification programs. Check with your city and state government agencies that work with businesses (such as its economic development agency) for information on how to apply.
Get Your Certification Fee Covered with U.S. Bank
Our partner, U.S. Bank, has created a certification sponsorship program to help with the financial burden of certification and provide technical expertise throughout the process. U.S. Bank partners with national certifying organizations (NMSDC, WBENC, NGLCC, Disability:IN, NaVOBA), BIPOC chambers (USBC, USPAACC, USHCC) and other state and federal certifying bodies. If eligible, they will pay for the certification fee for up to three (3) years.
If you’re interested in learning more about the program, please click here.
Identifying Opportunities as a Certified Business
Once you're certified, it's important to actively seek out new opportunities that may now be available to you. Start by exploring city, state, and corporate websites for bidding opportunities. Many organizations also offer free e-newsletters that highlight upcoming projects and contracts. Stay proactive with the certification organization and use these resources to your advantage.
