Certification is essentially part of a domestic trade deal. The deal being where there has been an area of the free enterprise system that inequality has occurred, then the remedy should be to take affirmative action to correct the competitive playing fair in a free enterprise system.
In the correction business model for domestic fair trade with minority-owned business enterprises and major public/private conglomerates the process of supplier identification is the larger requirement. Identifying which companies are termed or labeled as minority supplies. Then the next step is to validate the authenticity of such in order to not have a fake or front company purporting to be a minority who in actuality does not meet the definition.
Considerable work went into defining minority owned business. The National Minority Supplier Development Council (NMSDC) deems the definition of a MBE as;
- United States citizens.
- Minority businesses must be at least 51% minority-owned operated and controlled. For the purposes of NMSDC’s program, a minority group member is an individual who is at least 25% Asian, Black, Hispanic or Native American. Minority eligibility is established via a combination of screenings, interviews and site visits. Ownership, in the case of a publicly-owned business, means that at least 51% of the stock is owned by one or more minority group members.
- Must be a profit enterprise and physically located in the U. S. or its trust territories.