certification faqs

ANSWERS TO FREQUENTLY ASKED QUESTIONS ABOUT MINORITY BUSINESS ENTERPRISE CERTIFICATION

If you are a member of a new minority business enterprise, you may have some issues about what becoming a Certified MBE means. Or maybe you’re part of a corporation that’s interested in learning more about supplier diversity. For this reason, we’ve compiled a list of frequently asked questions about MBE certification and corporate membership as they pertain to the Southern Region Minority Supplier Development Council.

WHAT IS A SUBSCRIPTION SERVICE?
The subscription service grants MBEs access to sister council’s products and services outside of their home territory. The Southern Region Minority Supplier Development Council (SRMSDC) offers subscription services to certified MBEs from other NMSDC affiliate councils, who are looking to do business in Alabama, Arkansas, Louisiana, and Mississippi.

WHAT IS NMSDC?
The National Minority Supplier Development Council (NMSDC) is our parent organization, chartered in 1972 to provide a direct link between corporate America and minority-owned businesses. In the United States, the NMSDC network consists of 24 regional councils servicing their respective local territories. 

The four main steps involved with certification are: 

  1. Completed certification application along with necessary documentation upload and fee 
  2. Site visit of business location and interview of principal(s) 
  3. Certification Committee review and recommendation
  4. Vote of approval by Board of Directors



WHAT STEPS ARE INVOLVED IN THE CERTIFICATION PROCESS?
State certifications are for pursuing and conducting business with various government entities: agencies, cities, counties, etc. The certification issued by the SRMSDC is for doing business with the over 3500 corporate members of the National Minority Supplier Development Council (NMSDC). For minority businesses to be affiliated with the SRMSDC and have access to our corporate members and to be eligible for the many programs and services offered, it is necessary to complete the certification process. Further, the states of Arkansas and Mississippi accepts SRMSDC certification.

MY BUSINESS IS ALREADY CERTIFIED BY MY STATE.  WHY DO I HAVE TO FILL OUT YOUR APPLICATION?
For minority businesses to be affiliated with the SRMSDC and have access to our corporate members and to be eligible for the many programs and services offered, it is necessary to complete the certification process. It is also the certification that Corporate America accepts and requires. Once certified and part of the NMSDC Network, over two-thirds of minority business enterprises (MBE’s) confirm activity increases due to their partnership with the Council’s Corporate Members. In 2004 the largest U.S. Corporations purchased more than $80 billion in goods and services supplied by MBE’s. Companies prefer to do business with certified MBE’s.

WHY SHOULD I BECOME A CERTIFIED MBE?
The acronym “MBE” stands for minority business enterprise, and in plain English refers to any business that is owned and operated by an ethnic minority.  A minority-owned business is a for-profit enterprise, regardless of size, physically located in the United States or its trust territories, which is owned, operated and controlled by minority group members. “Minority group members” are United States citizens who are Asian, Asian-Indian, Black, Hispanic, or Native American. Ownership by minority individuals means that the business is at least 51% owned by such individuals or, in the case of a publicly owned business, at least 51% of the stock is owned by one or more such individuals. Further, those minority group members control the management and daily operations.

WHAT IS An MBE?

The acronym “MBE” stands for minority business enterprise, and in plain English refers to any business that is owned and operated by an ethnic minority. A minority-owned business is a for-profit enterprise, regardless of size, physically located in the United States or its trust territories, which is owned, operated and controlled by minority group members. “Minority group members” are United States citizens who are Asian, Asian-Indian, Black, Hispanic, or Native American. Ownership by minority individuals means that the business is at least 51% owned by such individuals or, in the case of a publicly owned business, at least 51% of the stock is owned by one or more such individuals. Further, those minority group members control the management and daily operations.