At JumpStart, I serve as a Senior Associate of Small Business Deal Flow where I advise entrepreneurs on business strategy, setting milestones and more. And as a former Certification Director with the Ohio Minority Supplier Development Council and Certification Officer at the City of Cleveland, I know the ins and outs of the certification processes, as well as the challenges business owners may face.
Most business owners have heard of common certifications such as Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Disadvantaged Business Enterprise (DBE) and Small Business Enterprise (SBE), but many don’t know their benefits or how to take advantage of them.
However, lucky for you, I’ll share a few tips on just that.
Common Business Certifications You Should Know
For those who may be unfamiliar, an MBE or WBE certification is a designation from a certifying organization that verifies a business is at least 51% owned, operated and controlled by either one or more ethnic minorities or women.
These differ from the DBE certification, a designation that states that the business is small, independent, owned, and controlled by socially and economically disadvantaged individuals. These designations are helpful because they can be used during the contracting and purchasing processes to promote equality. Depending on the certifying agency, they may also use the race and gender-neutral designation, SBE.
When it comes to certifying agencies, they usually fall into one of two groups – government and private. At a local level, you have the City of Cleveland, Cuyahoga County, and the Northeast Ohio Regional Sewer District (NEORSD). At this level they each certify MBEs, WBEs and SBEs or a variation of these.
On the state and federal level, there is the State of Ohio’s Department of Development and Ohio Department of Transportation (ODOT). The DBE certification is administered through ODOT and is considered a federal certification. In terms of private and non-profit accreditations, there are a few worth exploring including the National Minority Supplier Development Council (NMSDC) and Women’s Business Enterprise Council Ohio River Valley (WBEC ORV), and the National LGBT+ and Allied Chamber of Commerce (NGLCC). They are all national certifying agencies.
Beyond these basics, there are other sustainability, demographic and supplier diversity designated certifications available. These certifications can also help you with different purchasing and contracting processes.
Benefits of Obtaining Business Certifications
The benefits of each certification depend on the certifying agency but, there are several universal benefits including free advertising (every agency has a directory of their certified companies), access to various contract opportunities and professional networking. Certification doesn’t guarantee you a contract, but it does open doors for one.
One of the most underrated benefits is the opportunity to connect with other business owners, collaborate on projects, leverage each other’s services, and learn from one another. Don’t limit yourself by only working for government or private sector companies – consider ways you can work with your fellow certified business by directly providing them services, growing into partnerships or creating joint ventures to bid on larger projects as a prime contractor and not a subcontractor.
Certification is merely a tool in your entrepreneurship toolbox. Simply said; they don’t work if you don’t pick them up and wield them. How do you do that? By engaging with the certifying agencies or the companies who accept their certifications. If it’s a government agency, learn how they do business, attend a pre-bid meeting (whether it’s mandatory or not) to connect with the prime contractors who are bidding on the projects.
If you’re looking into private sector certification research which corporations accept the certification and learn how you can gain access to their supplier portals, connect with their supplier diversity teams and communicate how and why your solution can help them.
Like a lot of things with business ownership, it is helpful to navigate the certification process with the support of an experienced advisor. At JumpStart, we meet entrepreneurs where they are, identify their specific needs, and supply tools, education and resources to help them succeed. Connect with a small business advisor to get started today.
