Are you considering getting your small business certified as a minority-owned business? We asked seven members from the Young Entrepreneur Council (YEC) their opinion about the perks of becoming certified. Read the advice of other real-world entrepreneurs who took the leap and got officially certified.
Q. What is one major benefit to getting certified as a minority-owned business?
1. Gaining a sense of community
Becoming a certified minority-owned business provides you with an entirely new network of people who want to see you succeed. Doors will open with your fellow business owners, large corporations, and employee resource groups. We've made a ton of valuable contacts and formed business relationships with companies large and small since becoming an LGBTE less than a year ago.
2. Landing contracts that once seemed unlikely
I never liked playing the race card with my business and was stubborn about getting certified as a minority-owned business. Then, I learned that companies from major corporations actually go through great measures to do business with certified companies. Some are even legally obligated to. Since joining, I've been able to win contracts that I would not have dreamed of competing for.
—Robert De Los Santos, Sky High Party Rentals
3. Opening up marketing opportunities
It can be used as a marketing opportunity, especially if your business is located in an area where minorities live. For example, Hispanic shoppers in Miami might be more likely to consider your business if you're certified as Hispanic.
—Andrew Schrage, Money Crashers Personal Finance
4. Gaining access to government contracts
Access to and eligibility for government contracts is a huge benefit of certification. Most government entities at the federal, state and local levels mandate that at least some percentage of business goes to women and minorities. You must still be qualified, of course, but that certification is a huge leg up. —Alexandra Levit, Inspiration at Work
More articles from AllBusiness.com:
- The State of Minority-Owned Businesses: African American Entrepreneurs
- 3 Big Ways the SBA Helps Small Businesses (That You Might Not Know About)
- The State of Minority-Owned Businesses: Women Entrepreneurs
- Paycheck Protection Program Must Be Extended and Replenished to Help the Smallest Businesses
- 5 Expert Career Tips from a Minority Woman Executive in Tech
5. Opening up new business opportunities
Being certified as a minority-owned business allows you the opportunity to compete for RFPs for which you might not have been considered for. It opens up a world of corporate and government opportunities that, as a boutique company, you would not be exposed to otherwise.
—Alex Frias, Track Marketing Group
6. Getting your business in front of large corporations
In addition to a better chance at federal government contracting, many Fortune 500 companies have well-developed minority contracting programs. With your minority certification, you are almost certainly going to be placed directly in front of decision makers at very large corporations that are committed to doing business with minority-owned businesses.
7. Setting yourself apart from other businesses
One of the best things anyone can do is underestimate you. You will find that most companies have a hard time meeting their government- and company-mandated goals due to a variety of reasons (e.g., a lack of capacity, investment, awareness, or exposure). If your ego can bear this route, though I don't suggest leading with status, then it is a great differentiator—assuming strong performance.
