Minority Business Enterprise(MBE)
A for-profit business at least 51% owned and controlled by U.S. citizens who are members of designated minority groups, eligible for diversity programs and set-asides.
Overview
A Minority Business Enterprise (MBE) is a business at least 51% owned and controlled by individuals who are members of designated minority groups — including Black, Hispanic, Asian American, Native American, and other groups as defined by certifying bodies. MBE certification is used in state, local, and private sector diversity programs.
Why It Matters in GovCon
MBE certification opens doors to set-aside contracts and subcontracting opportunities, particularly in SLED procurement. Primes on large projects often have MBE participation goals. Federal contracting uses the 8(a) program for disadvantaged businesses; MBE is the more common term in non-federal markets.
Key Details
- Designated Groups: Varies by certifier; typically includes Black, Hispanic, Asian, Native American, and others.
- Ownership and Control: Must be 51%+ owned and day-to-day operations controlled by qualifying individuals.
- Certification: Through state agencies, NMSDC, or other approved bodies.
- Subcontracting: Primes may seek MBEs to meet diversity goals on federal and SLED contracts.
Related Terms
- Minority and Women-Owned Business Enterprise (MWBE)
- 8(a) Business Development Program
- Disadvantaged Business Enterprise (DBE)
- Set-Aside
More Programs Terms
An SBA program that helps small businesses owned by socially and economically disadvantaged individuals compete for federal contracts.
A subcategory of WOSB for women-owned small businesses where the owners are also economically disadvantaged, eligible for additional sole-source contracts.
An SBA program that gives preferential access to federal contracts for small businesses located in economically distressed areas.
A program pairing large experienced contractors with small businesses to help them build capabilities through joint ventures, subcontracting, and technical assistance.
A small business at least 51% owned and controlled by one or more veterans with a service-connected disability, eligible for federal set-aside contracts.
A small business at least 51% owned and controlled by one or more women, eligible for federal set-aside contracts in underrepresented industries.
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