The Definitive Guide for Minority-Owned Businesses

Minority-owned businesses account for approximately 21% of all U.S. employer firms — around 1.2 million businesses — generating significant economic output and employing millions of people across the country, according to the Census Bureau’s Annual Business Survey. Between 2017 and 2023, the number of minority women-owned employer firms alone grew by nearly 50%, reflecting sustained and broad-based growth across the minority business community.

Corporate supply chains and federal agencies alike now actively prioritize sourcing from certified minority-owned businesses, making certification one of the most impactful steps a minority entrepreneur can take. Read on to learn what qualifies a business as minority-owned, how certification works today, and what resources are available. 

What Is a Minority-Owned Business? 

There are three primary MBE classifications. Depending on your business size and financial profile, you may qualify for one or more: 

Classification	Who it’s for	Key requirement
MBE (Minority Business Enterprise)	Minority-owned businesses of any size	≥51% owned/controlled by minority U.S. citizens
MOSB (Minority-Owned Small Business)	Minority-owned businesses that qualify as small	All MBE requirements + meet SBA small business size standard
8(a) (Economically Disadvantaged Small Business)	Small minority-owned businesses with limited personal net worth	All MBE requirements + personal financial thresholds (see below)

Note: MBE is the term generally used by private and public entities. The federal government’s equivalent designation is the 8(a) program. 

How to Become a Minority-Owned Business 

MBE Requirements 

• The business must be at least 51% directly and unconditionally owned and controlled by one or more U.S. citizens who are members of a minority group. 

• Minority group members are defined as individuals who are Asian, Black, Hispanic, or Native American. 

• For publicly-owned businesses, at least 51% of the stock must be owned by one or more such individuals, and management and daily operations must be controlled by those minority group members. 

MOSB Requirements 

All MBE requirements, plus: 

• Meet the SBA small business size standard for your primary NAICS code. 

8(a) Economically Disadvantaged Small Business Requirements 

All MBE requirements, plus the following personal financial thresholds: 

• Personal net worth (assets minus liabilities) is less than $750,000, excluding ownership in the business, primary personal residence, income reinvested or used to pay business taxes, and funds in retirement accounts. 

• Adjusted gross income averaged over three years is $350,000 or less, excluding income reinvested or used to pay business taxes. 

• Fair market value of all assets is $6 million or less, excluding income reinvested or used to pay business taxes. 

More information about small business categories can be found on the Small Business Administration’s website. 

Becoming Certified as a Minority-Owned Business 

If you meet the requirements to be considered an MBE, MOSB, 8(a), or all of the above, your next step is certification. There are two types: third-party certification (used for corporate supplier diversity programs) and federal certification through the SBA (for government contracting). 

Third-party certification is strongly preferred by corporate supplier diversity programs. It provides procurement teams the assurance that an independent, nationally recognized agency has vetted your company and verified your minority-owned status — self-declaration alone rarely meets corporate program requirements. 

Third-Party Certification 

The primary MBE certification body is the National Minority Supplier Development Council (NMSDC). Headquartered in New York with 23 regional affiliates across the country, NMSDC’s corporate membership includes major public and privately owned companies, universities, and hospitals. The regional affiliates serve more than 13,000 certified MBEs, matching them with corporate members in need of their products, services, and solutions. 

Contact the NMSDC affiliate council closest to you to learn more about the certification process. 

Federal Certification (8(a) Program) 

The SBA’s 8(a) Business Development Program is the federal government’s primary vehicle for contracting with minority-owned small businesses. To apply, visit certifications.sba.gov. This is separate from third-party MBE certification and is required specifically to compete for federal 8(a) set-aside and sole-source contracts. 

Education, Funding, and Contracting Resources 

Both government and private institutions invest in supporting minority-owned businesses. Whether you’re just starting out or have been in business for years, these resources can help. 

NMSDC 

Beyond certification, the NMSDC is the primary advocate and voice for minority-owned businesses. The organization facilitates MBE integration into corporate and public-sector supply chains, builds MBE capacity through programs and education, and facilitates MBE-to-MBE partnerships. Its Centers of Excellence (COE) are regional business modules designed to strengthen corporate supplier diversity processes and help minority businesses compete globally. Each module is 18 to 24 months in duration and brings together corporate members and MBEs facilitated by an NMSDC regional affiliate. Learn more about the NMSDC. 

SCORE 

For over 50 years, nonprofit SCORE has helped small businesses — including minority-owned — get off the ground through mentorship and education, often at no charge thanks to SBA support. Visit SCORE. 

US Pan Asian American Chamber of Commerce (USPAACC) 

The USPAACC is the country’s largest educational, training, and networking organization for Asian Americans, connecting businesses to each other and to government entities to open doors to contract, professional, and educational opportunities. The USPAACC offers business executive training programs, microgrants, and business leadership webinars. Learn more about the USPAACC. 

US Hispanic Chamber of Commerce (USHCC) 

The USHCC actively promotes the economic growth and interests of Hispanic-owned businesses nationwide, advocates on behalf of major American corporations, and serves as the umbrella organization for more than 200 local chambers and business associations. Learn more about the USHCC. 

8(a) Business Development Program 

A government-sponsored business assistance program for small disadvantaged businesses, with a four-year developmental stage followed by a five-year transition stage. Participants get access to specialized business training, marketing assistance, and mentorship. Find out how to participate. 

Operation HOPE Small Business Empowerment Program 

Designed for aspiring entrepreneurs in under-resourced communities, Operation HOPE’s 12-week training program covers business planning and capital access for new businesses, as well as marketing and scaling for more established ones. Learn more at Operation HOPE. 

Funding 

Access to capital remains one of the primary obstacles for minority-owned businesses. The federal government offers several forms of assistance, and crowdfunding has expanded access to smaller investors as well. 

SBA Guaranteed Loans — The SBA doesn’t loan money directly; instead it establishes loan guidelines with partnering lenders and guarantees repayment, so small businesses typically receive lower, more competitive rates than non-guaranteed loans. Find more information about SBA-guaranteed loans. 

USA.gov — Beyond the SBA, the U.S. government offers other loan and funding resources, including options specific to 8(a) businesses. Explore funding resources. 

Minority Business Development Agency (MBDA) — Part of the U.S. Department of Commerce, the MBDA promotes the success of minority-owned businesses by connecting owners to experts on securing capital, identifying strategic partners, and expanding globally. Find your local MBDA Business Center. 

Crowdfunding — Rather than relying on a handful of large investors, crowdfunding pulls small investments from a large pool of backers — a popular path for businesses of all types and sizes. 

Contracting Opportunities 

Both the federal government and many of America’s largest corporations require procurement departments to direct a portion of spend to diverse suppliers each year. Once certified, it’s time to leverage that certification to access contracting opportunities. 

Supplier Registration Platforms — Corporate procurement teams use third-party supplier registration portals to find and vet diverse suppliers. Register your company today to get in front of Fortune 1000 buyers actively sourcing minority-owned businesses. 

8(a) Business Development Program — Participants may be eligible for sole-source contracts up to $4 million for goods and services and $6.5 million for manufacturing. Participants can also form joint ventures to bid on contracts they couldn’t handle alone, while building valuable industry relationships. Learn more about 8(a) contracting opportunities. 

HUBZone Program — The SBA’s Historically Underutilized Business Zone program assists businesses in economically depressed areas. Not restricted to minority-owned businesses, but stackable with MBE certification if you qualify. Learn more about HUBZone. 

Frequently Asked Questions 

What’s the difference between MBE and 8(a)? 

MBE is a third-party certification — typically issued by NMSDC — used for corporate supplier diversity programs. The 8(a) designation is a federal SBA program for economically disadvantaged small businesses and is required to compete for federal 8(a) set-aside contracts. A business can — and often should — hold both. 

Do I need third-party certification or SBA certification? 

It depends on your goal. For corporate supplier diversity programs, NMSDC third-party certification is the standard. For federal government contracting, you need SBA 8(a) certification via certifications.sba.gov. Many minority-owned businesses pursue both. 

Can I hold MBE certification alongside other certifications? 

Yes. A business can hold MBE certification alongside WBE, VBE, LGBTBE, or DOBE certifications — and the 8(a) and HUBZone designations — as long as it meets each program’s separate requirements. 

How long does MBE certification take? 

Timelines vary by regional NMSDC affiliate and documentation completeness, but applicants should generally expect a process of several weeks to a few months. Check directly with your regional affiliate for current processing times. 

Ready to get your certified minority-owned business in front of Fortune 1000 buyers? 

Supplier.io helps corporate procurement teams discover and manage certified minority-owned and other diverse suppliers at scale. Register your business so procurement teams actively sourcing MBEs can find you. 

Ready to Put Your MBE Certification to Work?

Certification opens the door. Registration gets you in front of the Fortune 1000 buyers actively sourcing minority-owned businesses.

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