What Is MBE Certification and What Are Its Benefits 

You may have heard the term “diversity, equity, and inclusion (DEI)” used quite a bit recently. They are more than just buzzwords; in today’s business world, they are crucial in fostering innovation, growth, and resilience and, not least, getting an edge on the competition. One of the ways companies and projects can embrace diversity is by working with Minority Business Enterprises (MBEs). But what exactly is MBE certification, and why is it beneficial to use an MBE-certified contractor? Let’s take a more in-depth look.

What Is MBE Certification?

MBE (Minority Business Enterprise) certification is a designation awarded to businesses that are at least 51% owned, operated, and controlled by a minority or minorities. The certification is usually provided by reputable organizations such as the State of Florida, Orange County, the City of Orlando, and FMSDC (Florida Minority Supplier Development Council). The certification process involves a thorough review of a business’s ownership, management, and financial structure to ensure compliance with the criteria.

Benefits of MBE Certification

• Access to New Opportunities- MBE certification opens doors to a network of corporate partners and government contracts. Many large corporations and public sector entities have DEI goals and set-aside contracts specifically for minority-owned businesses.
• Increased Visibility- Certified MBEs gain increased visibility in directories used by procurement officers and supplier diversity professionals. This visibility can lead to more business opportunities and collaborations.
• Networking and Business Development- Certified MBEs can participate in DEI networking events, trade shows, and training programs organized by certifying bodies. These events provide valuable opportunities to connect with potential clients, partners, and mentors.
• Financial Support- MBEs may have access to specialized financial assistance, including grants, loans, and equity investments. Some certification bodies also offer training on financial management and access to capital.
• Enhanced Credibility- The rigorous certification process enhances the credibility and reputation of a business. This credibility can be a differentiator in competitive markets, signaling to potential clients and partners that the business meets high standards of ownership and operation.

Why Use an MBE-Certified Contractor?

• Diversity and Innovation- Working with MBE-certified contractors brings diverse perspectives and innovative solutions to projects. Diverse teams are known to approach problems differently, leading to creative solutions that might not come about otherwise.
• Compliance with Diversity Goals- Many organizations, especially in the public sector, have diversity and inclusion mandates. Engaging MBE-certified contractors helps these organizations meet their diversity goals and comply with regulatory requirements.
• Community Impact- Hiring MBE-certified contractors supports minority-owned businesses, contributing to the economic growth of minority communities. This can enhance the DEI reputation of a project or organization.
• Broadened Supply Chain- Utilizing MBE-certified contractors helps diversify the supply chain, reducing dependency on a limited number of suppliers and increasing resilience against market disruptions.
• Positive Brand Image- Companies that prioritize DEI standards often enjoy a positive brand image, enhancing customer loyalty, attracting top talent, and improving overall market competitiveness.
• Potential for Incentives- Some government agencies and large corporations offer incentives for projects that include MBE-certified contractors. These incentives can be financial or in the form of favored treatment in contract awards.

A Final Thought

MBE certification is more than just a mark of diversity; it represents a commitment to inclusivity, innovation, and community development. For DEI-committed projects and organizations, utilizing MBE-certified contractors is a strategic move that brings a variety of benefits, from enhanced creativity and compliance with DEI goals to positive community impact and improved brand image. 

Whether you are a business owner considering certification or a project manager looking to diversify your supply chain, understanding the value of MBE certification is a positive first step towards reaping its numerous benefits.

Use New Horizons Construction for Your MBE-Friendly Project 

Regardless of whether you are required to use an MBE-certified business or are just seeking to make a positive impact in the community, use New Horizons to meet your goal. We are MBE certified by the State of Florida, Orange County, and the City of Orlando. We are also FMSDC-approved (Florida Minority Supplier Development Council). In the greater Orlando area, call us at 407-574-2164 or use our simple contact form. We can give you an edge in your project not only because of our DEI favorable status but also because we get the job done right, the first time, every time.