The Minority Business Alliance’s objective is to Partner Organizations With Essential Resources (POWER) to enhance the business and economic development of minority and women-owned businesses and our communities. One way this objective is achieved is by educating businesses about the benefits of certification and the role that it plays in providing equal access to procurement opportunities for minority and women-owned business enterprises (MWBEs).
Who are economically/socially disadvantaged individuals?
Economically Disadvantaged
A business owner’s inability to compete in the free market enterprise system due to diminished capital and credit opportunities.
Socially Disadvantaged
Those individuals who have been subjected to ethnic/racial prejudice or cultural bias because of their identity as members of a group or sub-set. Social disadvantage must stem from circumstances beyond their control.
In the absence of evidence to the contrary, individuals who are members of the following designated ethnic cultures are presumed to be economically/socially disadvantaged:
African Americans - U.S. citizens having origins in any of the Black racial groups of Africa.
Asian Americans -
Asian-Indian: U.S. citizens whose origins are from Bangladesh, India, and Pakistan.
Asian Pacific: U.S. citizens whose origins are from Cambodia, China, Guam, Indonesia, Japan, Korea, Laos, Malaysia, Philippines, Taiwan, Thailand, Samoa, Vietnam, and the U.S. Trust Territories of the Pacific or the Northern Marianas.
Hispanic Americans - U.S. citizens of Spanish culture whose origins are the Caribbean Islands, Central America, Mexico, or South America.
Native Americans – Aleuts, American Indians, Eskimos, Native Hawaiians.
Veteran Owned Business – Must be at least 51% owned by one or more qualified veterans, and the management and daily business operations of which are controlled by one or more qualified veterans.
Service-Disabled Veteran Owned Business - The business must be 51 % unconditionally and directly owned by one or more Service-Disabled Veterans or in the case of any publicly owned business, not less than 51% of the stock of the company must be owned by one or more Service-Disabled Veterans; and the management and daily business operations of the SDVOB must be controlled by one or more service-disabled veterans. Service-Disabled Veteran Owned Business owners must be able to provide proof of classification. No formal certification process is required. For more information please visit http://www.acq.osd.mil/osbp/programs/veterans/faq.htm.
Gay, Lesbian, Bi-sexual, Transgender - Gay, Lesbian, Bi-sexual, Transgender Owned Business (GLBT). The business must be 51% owned, operated and controlled by a GLBT business owner certified by The National Gay and Lesbian Chamber of Commerce (NGLCC).
Minority Business Enterprise (MBE)
A business enterprise is classified as a minority-owned business if the company is at least 51% owned, controlled and operated by one or more individuals from a minority group. Most states and cities have established MBE business programs. These programs may vary in benefits offered to qualifying businesses, but all are designed to provide growth and improved competitive advantage to minority business owners.
Women Business Enterprise (WBE)
A business enterprise is classified as a women-owned business if the company is at least 51% owned, controlled, and operated by a woman or women. Most large metropolitan cities and states have established WBE business programs. These programs may vary in benefits offered to qualifying businesses, but all are designed to provide growth and improved competitive advantage to women business owners.
Disadvantaged Business Enterprise (DBE)
Certain agencies, including the City of Kansas City, Missouri, the Missouri and Kansas Departments of Transportation, and most federal agencies, also include a Disadvantaged Business Entity certification. The DBE certification, in addition to requiring proof of the Minority/Women ownership and control of the company, also requires proof of the owner’s social and economic disadvantage. “Social disadvantage” is presumed for any recognized minority, including African-Americans, American Indians, Asians, and Hispanics/Latinos, although this presumption is subject to third party challenge. Non-minorities can also prove “social disadvantage” through documentation of special circumstances in their lives creating the disadvantage. “Economic disadvantage” is established through the owner submitting an affidavit and backup documentation showing their personal net worth to be less than $750,000. Even if DBE status is granted, the certification is cancelled when the owner’s personal net worth exceeds the $750,000 threshold.
Small Local Business Enterprise (SLBE)
A for-profit business that:
- Is at least fifty-one percent owned, managed and independently controlled by the applicant(s); and
- Exists independently and is not an affiliate or subsidiary of any other business.
- Is able to demonstrate that they have the skill and expertise to perform in the particular area(s) of work for which they are seeking certification; and
- Has a real and substantial presence in the Kansas City Metropolitan Area. A business enterprise shall be deemed to have a real and substantial presence in the Kansas City Metropolitan Area if:
- The business’ principal place of business is in the Kansas City Metropolitan Area.
- The business maintains the majority of its full-time employees in the Kansas City Metropolitan Area.
- The business has transacted business more than once in the Kansas City Metropolitan Area within the last two (2) years; and
- Has annual gross receipts that, when added with those of its subsidiary or subsidiaries and averaged over three (3) consecutive years, do not exceed five percent (5%) of the applicable business size standard for the SBA General Contractor Classification which is equivalent of the NAIC code 236220 as established in 13 CFR 121.201, as amended; and
- Is certified by the Human Relations Department as a Small Local Business Enterprise.
Other Classifications
8(a) Certified - A business must be at least 51% owned by U.S. citizens who are found to be socially and economically disadvantaged and the business must be managed and controlled by disadvantaged individuals. For initial certification, the net worth of an individual claiming disadvantage must be less than $250,000. For continued 8(a) eligibility after admission, net worth must be less than $750,000.
HUBZone – Refers to a Historically Underutilized Business Zone. Small businesses may obtain HUBZone certification by employing and maintaining staff (35%) that live in a HUBZone and maintaining a “principal office” in one of these specially designated areas.