RACIALLY DIVERSE OWNERSHIP
A racially diverse ownership certificate is part of a collection of diversity certificates. Diversity in this sense refers to all minorities and women. A diversity certificate is offered by many state, federal, and third party agencies, and it is used to certify diverse suppliers through a formal review process. When a business meets the minimum eligibility criteria, they are awarded certification to prove it is diversity owned. Another example of this kind of certificate is a women-owned small business certificate.
What is it?
A certified racially diverse-owned business means that a business is owned and controlled by ethnic minorities by at least 51 percent. In the U.S., these may include people who are American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Other Pacific Islander, or a person whose ethnicity is Hispanic or Latino.
Why does it matter?
These programs help level the playing field for diverse businesses in both the government and corporate buying processes. After being awarded this diversity certificate, these businesses are often eligible to apply for potentially life-saving government grants. These grants provide a monetary boost and increase the business’ chance of success in the first few years.
Additionally, various levels of the government have goals to spend a specific percentage of their prime contracts on businesses that have been awarded these diversity certifications. This is yet another powerful resource that only certified businesses are able to get access to.
Similar to other diversity certifications, racially diverse-ownership certification should be a part of a business’ overall sales and marketing strategy given the monetary benefits of doing so.