Minority business enterprise (MBE) is an American designation for businesses which are at least 51% owned, operated and controlled on a daily basis by one or more (in combination) American citizens of the following

ethnic minority The term "minority group" has different meanings, depending on the context. According to common usage, it can be defined simply as a group in society with the least number of individuals, or less than half of a population. Usually a minority g ...

and/or gender (e.g. woman-owned) and/or military veteran classifications: #

African American African Americans, also known as Black Americans and formerly also called Afro-Americans, are an Race and ethnicity in the United States, American racial and ethnic group that consists of Americans who have total or partial ancestry from an ...

Asian American Asian Americans are Americans with ancestry from the continent of Asia (including naturalized Americans who are immigrants from specific regions in Asia and descendants of those immigrants). Although this term had historically been used fo ...

Pacific Islander Pacific Islanders, Pasifika, Pasefika, Pacificans, or rarely Pacificers are the peoples of the list of islands in the Pacific Ocean, Pacific Islands. As an ethnic group, ethnic/race (human categorization), racial term, it is used to describe th ...

(includes West Asian Americans (Iran, etc.) and East Asian Americans (Japan, Korea, etc.)) #

Hispanic American Hispanic and Latino Americans are Americans who have a Spanish or Latin American background, culture, or family origin. This demographic group includes all Americans who identify as Hispanic or Latino, regardless of race. According to the ...

- A U.S. citizen of true-born Hispanic heritage, from any of the Spanish-speaking areas of the following regions: Mexico, Central America, South America and the Caribbean Basin only. Brazilians (Afro-Brazilian, indigenous/Indian only) shall be listed under Hispanic designation for review and certification purposes. #

Native American Native Americans or Native American usually refers to Native Americans in the United States. Related terms and peoples include: Ethnic groups * Indigenous peoples of the Americas, the pre-Columbian peoples of North, South, and Central America ...

, including Aleuts According to the

Minority Business Development Agency The Minority Business Development Agency (MBDA) is an agency in the United States Department of Commerce that promotes growth and competitiveness of the United States' minority-owned businesses, including Hispanic and Latino American, Asian Pac ...

, minorities own more than 8 million firms, and account for nearly $1.4 trillion in revenues. MBEs can self-identify, but are typically certified by a city, state or federal agency. Over $300 million were paid to many who self-identify as Cherokee.

Public contract bidding

Certain states within the United States, as a part of their bidding process, incentivize MBEs and women-owned business enterprises to bid on publicly awarded construction or service contracts. They may also declare that a percentage of the work performed on a contract be awarded to a MBE or women-owned business enterprise.

New York

In New York, the goal for the award of public contracts is to increase from 20% in 2014 to 30% by 2019. In 2018, the state was also considering establishing goals for the workforce of contractors awarded public contracts, but insisted these goals were not quotas. If contractors could not make a "good faith" effort to reach the goals, contractors might not be eligible for future public contracts for a length determined by the state. In 2021,

New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...

expanded the certification to

LGBT-owned business LGBTQ-, or queer-owned businesses are businesses owned and often operated by members of the LGBTQIA+ community. They may also be described as being owned by specific subgroups, such as gay-, lesbian-, or trans-owned businesses. Many queer-owned ...

es to qualify as minority-owned businesses to qualify for contracts.

Controversy

In 2014, when New York increased its Minority and Women-Owned Business Enterprise (MWBE) goals for public contracts from 20% to 30%, the Association of General Contractors (AGC) sued the state for failing to release documents via New York's Freedom of Information Law (FOIL). The AGC was concerned that the state had not conducted a proper contract analysis before declaring the increase of the MWBE goal to 30%. The AGC stated that the 30% goal does not reflect the availability of MWBEs statewide. The AGC also questioned a later study - performed by Mason Tillman Associates Ltd. of Oakland, California - that was paid for by the state in consideration of its employment goals for state contracts. There have been cases where contractors have been charged with crimes for impersonating MBEs. In New York, the owner of Eastern Building & Restoration was sentenced to 3.5 to 12 years in prison for fraudulently receiving over $800,000 from public construction contracts for impersonating as an MBE from the years 2012 - 2014.

References

{{DEFAULTSORT:Minority Business Enterprise Business terms Business models Corporate social responsibility Entrepreneurship

Public contract bidding

New York

Controversy

See also

References