There are numerous opportunities available for minority business owners, ranging from free training to funding and access to proposal requests. But does your business (A) know what’s available and (B) qualify? While qualifications vary depending on the type of business, a nearly universal requirement is that the business must be at least 51% owned by individuals who are either minorities or economically or socially disadvantaged. For the purposes of this article, minorities include African-American, Asian, Hispanic, and Native American individuals. Economically or socially disadvantaged groups include women, people with disabilities, and veterans with disabilities. More information about eligible businesses can be found on the Ohio Department of Development website.

A single business can hold multiple certifications, and therefore multiple opportunities, depending on its ownership structure. Certifications are often provided by government agencies or private organizations. Government certifications typically grant access to government-level contracts, while private organizations can connect businesses with large corporate opportunities.

Minority Owned Businesses (MBE’s)

The State of Ohio offers specific set-aside contracts and various funding options for MBEs, from large loans for real estate or recruitment to smaller microloans. Additionally, many municipalities in Ohio recognize the State MBE certification for set-aside contracts, provided the business completes a cross-certification process.

The federal government assists MBEs through its Minority Business Development Agency, providing everything from training to access to capital.  Private certification is available through the National Minority Supplier Development Council. 

Encouraging Diversity Growth and Equity Program (EDGE)

EDGE-certified businesses have access to state set-aside contracts and funding, along with additional training and services. Specifically, EDGE businesses can benefit from free accounting and marketing assistance, as well as mentoring opportunities, which can be invaluable for growth and development.

Women Business Enterprise (WBEs)

WBEs have the advantage of being cross-certified in other states, significantly expanding their growth potential. Like EDGE-certified businesses, WBEs can access free accounting, marketing, and technical assistance.

Beyond Ohio, the Small Business Administration (SBA) offers its own certification process to give WBEs an edge in securing federal contracts. Businesses can apply directly with the SBA or through third-party certifiers like the Women’s Business Enterprise National Council (WBENC).

Veteran Friendly Business Enterprise (VFPEs)

VFPE certification has several pathways. A business can be certified if at least 10% of its workforce are veterans, or if it is 51% or more veteran-owned, certified by the Department of Veterans Affairs, or, in the case of a corporation, has a board of directors that is 51% or more veterans. VFPEs benefit from advantages in pricing and scoring during the RFP process.

The SBA also works with Veteran Business Outreach Centers to provide further support for VFPEs. The VBOC center for the Midwest, including Ohio, is located in Flint, Michigan, and offers assistance with business planning, startup, and growth. 

LGBTQ Business Enterprise (LGBTEs)

While there are currently no state-level LGBTQ+ certifications, the National Gay and Lesbian Chamber of Commerce (NGLCC) offers a private certification. The NGLCC has also partnered with local municipalities to have this certification recognized for diverse business opportunities. This certification allows access to larger corporate spending and municipal government contracts.

Conclusion

There are ample opportunities for minority, women, veteran-owned, and LGBTQ+ businesses to access capital, contracts, and resources through various certifications. Additionally, private sector certifications can help business owners build a supportive community and broaden their network.

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