Benefits of Minority Owned Business Certification
Although business registrations are not mandatory for a start-up organization, it is a smart choice for entrepreneurs. Certification will help establish a competitive advantage and support the entrepreneur to stand out from his peers.
Certification will help a business to build trust and pave the way for immense opportunities. A certified company will have increased visibility which will help raise funds quickly.
Our mission at Cocolevio is to enable traditional businesses to strategically leverage modern technology to grow their revenue and profit and attain operating effectiveness.
Adding to the technological advancements, one has to undergo many procedures, from setting up a physical and online presence to obtaining minority-owned business certifications before starting their day-to-day business.
Major benefits of minority owned business certification
The question of why certification is necessary and the benefits of minority-owned business certification may ponder your mind. The answer is quite simple.
Businesses today are very diverse. Certification will help them get the appropriate recognition. It is a challenging task to gain a client’s trust. Adding a certificate enables you to prove your trustworthiness and makes generating leads easier. If you want to stand out from competitors, getting your business certified is the best choice, as it will help you gain loyal customers.
Easy access to contracts
Getting a certification will open the doors to private and government contracts that are otherwise difficult to attain. Certification will serve as a competitive advantage for your entire business.
For any business, building a community is very important. Having an inbuilt network of people with similar companies will strengthen your position. Certification helps in making this community for small businesses.
Small Business Certification will expose you to organizations with a huge turnover, and this helps in building your visibility, thereby helping you get high-ticket clients.
Small and Minority Business Certification help in the funding of the business. Many businesses are owned by women, veterans, and the minority group, and unless they are certified, it is tough to raise Investments and seek loans. Certification provides exclusive opportunities to apply for grants as well.
Certified businesses have access to tax incentives and increased financial assistance. Of the businesses run by women, minority groups, and veterans, only 0.6% of them are certified.
A recent American Express State of Women-Owned Businesses Report found that women-owned enterprises grew by 21% between 2014 and 2019 because of certification.
Why does certification seem like a difficult process?
A business’s minority-owned business certification process could be more transparent as there is a need for a single streamlined application. Many certification programs need the option to accommodate diverse companies. There are different forms of certification available, depending on the ownership. It is challenging to identify which certification one should opt for. There also needs to be clarity as to whether multiple certifications are necessary. This lack of transparency makes the entire certification process very complex.
Solution: You will need a service provider to simplify the certification process for businesses of all sizes and natures. Someone who will eradicate all the complexities in the certification process by promptly capturing all the required information and documentation. Ensure your service provider promptly submits your application to the respective authorities, thereby fastening the certification process.
Also Read: Why You Should Certify Your Diverse Business
Lack of information storage
Many certification programs do not offer a central server to store all the legal and essential certification documents. This affects accessing the documents in a remote mode and makes anywhere–anytime access impossible.
Solution: Make sure your service provides access and organize all the past certificates, relevant documents, and invoices at a central server, eliminating the need for endless searches through your drive for files, emails, or paper records. These documents should also be downloadable as and when required. From the issue date to the expiry date, along with the certification number, every data must be present on the central server of the service provider.
Difficulty in renewal
Certification is not a one-time process; renewals can be time-consuming and expensive.
Solution: Ensure all documents are saved in the central server of the service provider so that the same can be resubmitted for renewal, saving both time and cost. Make sure it is flexible enough to re-upload expired documents, and significant business changes must be editable as and when they occur.
Process of minority owned business certification
The 5-step application process through 58Joralemon
Making an application for certification will take you as little as 15 minutes.
- The first step is to fill out a form regarding the organization and the owners.
- The second step involves uploading all the required documents.
- The app provides an option to complete the payment for the application. Upon payment, you can apply.
- After submission, your application goes through a review process where you must provide further information about the nature of the business or owners and other significant matters.
- Upon completing the review, your application will be verified. The certification decision will be communicated within seven business days, and you can avail the perks and benefits of minority-owned business certification.
Different categories of small business certification
A woman or group of women who owns more than 51% of an entity is called a woman-owned business. The Governing body of these organizations, such as a top executive officer responsible for the day-to-day operations, must consist of women. These women should be US citizens or green card holders. They should be an expert in the organization’s primary business. Upon contributing a significant amount to the company’s ownership, they become eligible to apply for certification as a woman-owned business.
Let us first understand who a minority is.
- Black Americans, including any Black racial group which originated in Africa.
- Hispanic people from Mexico, Puerto Rico, South America, or other Spanish or Portuguese cultures.
- Native Americans, including natives of Alaska or Hawaii, or certified members of a federal or state-recognized Indian Tribe.
- Asian Pacific people originating from the Pacific Islands, China, Taiwan, Korea, Japan, Thailand, Indonesia, Singapore, or the Philippines
- People from the Asian subcontinent include India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal, and Sri Lanka.
These groups can apply for a Minority-owned business if they contribute at least 51% towards acquiring ownership.
To apply for this certification, veteran members should own at least 51% of the business. The veteran should have absolute control over the business’s day-to-day management, decision-making, and strategic policies. He should have the adequate managerial experience to run the business. He should work full-time for the business and be the highest-paid person in the company holding the highest officer position.
For veteran-owned business certification, the business should satisfy the following two conditions:
- The business should be owned by an individual who has served on active duty with the Army, Air Force, Navy, Marine Corps, or Coast Guard for any time, provided they have not received any dishonorable discharge.
- The business should be owned by an individual who has served as a Reservist or member of the National Guard and was called to federal active duty or disabled from a disease or injury that has just started or gotten worse in the line of duty while he is in training status.
Documentation required for minority owned business certification
Women, minority groups, and veterans can apply for certification after submitting their official U.S Birth certificates. Only certificates from the government, which have a certificate number, are acceptable. Hospital-issued certificates and live birth certificates are not eligible. Along with the Birth certificate, a copy of the US Citizenship or Green card, driver’s license, state ID, or passport is necessary to process the application.
To confirm the business presence – you must submit documents relating to the Business Registration Certificate, Certificate of Incorporation of the organization, its charter, and the latest Bank statements for three months.
Related Article: How to Get Minority-Owned Business Certification
58Joralemon is an application designed by Cocolevio specifically for simplifying the process of obtaining certification. This application helps you establish your business’s credibility in less than 15 minutes.
As seen above, there are numerous benefits of minority-owned business certification. It not only establishes your credibility but paves the way for immense opportunities. Certification makes it easy to be proactive and increases the audience for your business. Our Cocolevio platform is the best online platform in the USA.
Check out our website and apply for various business certifications. Get your business certification in a few days and have a better tomorrow.