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What is an MBE?

Overview

Today, supplier diversity has become a business imperative. Initially driven by government mandates or a sense of social responsibility, world-class procurement organizations are now finding that doing business with suppliers owned by diverse groups-those that more accurately mirror the makeup of their customers-helps improve the bottom line. There are over 3,500 corporations participating in supplier-diversity programs.; Within the past 18 years corporate members with diverse suppliers has grown from $88 million per year to over $90 billion per year. More than 14 of these corporations are members of the Billion Dollar Roundtable-a group of companies that purchase over a billion dollars in goods and services from their diverse suppliers annually. Generally, most Fortune 500 companies have a 20% year-over-year increase goal in diversity spend. They do this not only for corporate social responsibility but many studies show: using minority based suppliers increases creativity, pays big dividends, reflects the population more adequately, play an increasingly vital role in expanding the U.S. economy ensuring North America’s competitive advantage in the global economy and empowers small business and gives them a chance to compete. Demographic trends suggest that the move to embrace minority businesses will only increase.

Magno International, L.P. Recognized Diversity Classifications & Definitions

 

Minority Business Enterprise (MBE)

A business, regardless of size, which is owned, operated and controlled by minority group members. "Minority group members" are United States citizens who are African-American, Hispanic, Native American, or Asian. Ownership by minority individuals means the business is not less than 51% owned by one or more such individuals or, in the case of a publicly owned business, not less than 51% of the stock. Further, those minority group members control the management and daily operations of the business.

 

Minority Groups: 

  • African-American: A U.S. citizen having origins in any of the Black racial groups of Africa.
  • Asian-Indian: A U.S. citizen whose origins are from India, Pakistan and Bangladesh.
  • Asian-Pacific: A U.S. citizen whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust Territories of the Pacific or the Northern Marianas.
  • Hispanic: A U.S. citizen of true born Hispanic heritage, from any of the Spanish-speaking areas of Latin America or the following regions: Mexico, Central America, South America and the Caribbean Basin only.
  • Native American: A person who is an American Indian, Eskimo, Aleut or Native Hawaiian, and regarded as such by the community of which the person claims to be a part. Native Americans must be documented members of a North American tribe, band or otherwise organized group of native people who are indigenous to the continental United States and proof can be provided through a Native American Blood Degree Certificate (i.e., tribal registry letter, tribal roll register number).

Veteran Business Enterprise (VBE)

A business that is not less than 51% owned by one or more veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any publicly owned business, not less than 51% of the stock of which is owned by one or more veterans; and the management and daily business operations of which are controlled by one or more veterans.

Small Disadvantaged Business (SDB)

A business that is not less than 51% unconditionally owned by one or more individuals who are; socially/economically disadvantaged, or a publicly owned business that has not less than 51% of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and that has its management and daily business controlled by one or more such individuals. This term also means a small business concern that is not less than 51% unconditionally owned by an economically disadvantaged Indian tribe or Native Hawaiian Organization, or a publicly owned business that has not less than 51% of its stock unconditionally owned by one of these entities, that has its management and daily business controlled by members of an economically disadvantaged Indian tribe or Native Hawaiian Organization, and that meets the requirements of 13 CFR part 124.

Small Business

A small business is a U.S. business that is independently owned and operated, is not dominant in its field of operation and can qualify under criteria concerning number of employees, average annual receipts or other criteria as outlined by the U.S. Small Business Administration (CFR Title 13, Part 121, as amended).

Under-Represented Business:

A general term that will be used to describe businesses that have been identified as underprivelaged or have been specifically targeted for procurement opportunities in US or non-US regions.