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MINORITY
BUSINESS ENTERPRISE CERTIFICATION By:
Gary H. Graca More and more Michigan companies are forming Minority Business Enterprises ("MBEs") in order to retain business and remain competitive. There is strong competition for certified minority content work in the marketplace. Purchasing Agents are operating under management directives to place business with minority certified entities.
Any form of business entity can be certified as an MBE in
Michigan. This includes
Subchapter S corporations, Subchapter C corporations, limited liability
companies, limited liability partnerships, limited partnerships, limited
general partnerships and sole entrepreneurs.
A certified MBE is a business recognized by the Michigan Minority
Business Development Council ("MMBDC") as a certified minority owned
and operated Michigan business entity.
The qualifying process begins with submission of an MMBDC
Affiliate Membership and Certification Application.
MMBDC then conducts a thorough investigation.
It reviews the company's
operations, its financial statements, bylaws, share certificates, lease
agreements, human resource records, licenses and authorities.
It interviews each applicant and inspects the physical
facilities, and then determines if the company is certifiable based on
the MMBDC's published policies and procedures.
The certification process takes anywhere from 90 days to one year
depending on the nature of the business, the availability of the
information requested by the MMBDC and the level of its investigation.
Unsuccessful applicants may appeal the decision once as a
matter of right, but if certification is again denied, the company must
wait one year to re-apply.
In many cases, business owners find that their customers require
MMBDC certification in order to bid on specific jobs.
Major corporations have recognized that certification (1) weeds
out "false front operations," (2) completely eliminates the need to
have purchasing agents screen suppliers to determine minority ownership
and control, and (3) complies with federal regulations (Public Law
95-507) requiring the provision of subcontracting opportunities
for minority-owned businesses. |
