Becoming a Minority Supplier to Big Business

Get certified and get your piece of the corporate procurement pie

By Constance Gustke

Many corporations, from Xerox to Exxon to Dell Computer actively seek minority suppliers for specifically marked programs called "set asides." For example, Daimler Chrysler has dished out more than $30 billion in business since its program began in 1983. To compete for set asides, your company first needs to get certified as a minority business enterprise (MBE) or women business enterprise (WBE). The certification process can be byzantine, requiring money and time, but the rewards can be well worth the effort. Here's what you'll need:

Be a member of a specified ethnic group or be a woman.
Own at least 51 percent of your business.
Have sound company management and financial viability.
Be a U.S. citizen.

Apply for minority business enterprise certification

The National Minority Supplier Development Council (NMSDC) has certified more than 15,000 businesses as MBEs. It defines a minority as a U.S. citizen who can show documentation that he or she is at least 25 percent of one of the following ethnic groups: Asian-Indian, Asian-Pacific, Black, Hispanic or Native American. A second type of certification, called a minority-controlled firm, is also available.
Try: Check out the NMSDC's site to learn more about requirements and to find the NMSDC regional council near you to apply for certification.

Apply for women-owned business certification

To be eligible for certification as a WBE, a business must be 51 percent owned by a woman or women. Applicants must submit proof of management control of the business.
Try: Visit the Women's Business Enterprise National Council (WBENC) site, which has certified more than 5,400 women-owned businesses, to learn more about certification. The National Women Business Owners Corporation (NWBOC) also offers a certification program.

Hire a certification pro

Because the certification process can be lengthy and paper-laden, you may need assistance.
Try: Check out the Minority and Women Business Enterprise's site to learn more.

Connect with big businesses

Once you're certified, begin soliciting business. Attend trade fairs and become a member of minority business organizations that provide opportunities to meet with corporate buyers.
Try: The NMSDC offers a number of trade fairs nationwide where MBE and WBE suppliers can meet with corporate buyers. WBEs can take advantage of the WBENC's annual business fair. Register at DiversityBusiness.com to gain access to Fortune 500 buyer contacts and corporate executive contacts in your state. Membership also provides access to numerous resources, including virtual trade fairs.

Bid on projects

Caveat: The approval process at big companies may be long and arduous. However, a growing number of major corporations have created supplier diversity programs to facilitate the bidding process for MBEs and WBEs.
Try: Look for corporations that are actively seeking out minority suppliers. For example, AT&T offers training opportunities for MBEs and WBEs that want to become AT&T suppliers.