Diversity is highly valuable, and having a business relationship with a certified minority company shows that your business recognizes the value in diversity. As a supplier of diversity, your business becomes more attractive to companies who are looking for a second-tier sourcing supplier. Working with a minority-owned company can partner you with a highly-qualified vendor and may open the door for future state and federal contracts. Increasing diversity spending can qualify you for government contracts.
A minority company can offer you tax savings and other financial benefits due to federal and state incentives. These benefits result in lower overall costs for you, and allows many minority businesses to operate in markets less accessible to other non-minority competitors. Between their local connections, diversity in staff and financial advantages, MBEs frequently offer strong value propositions for their services.
Working with a minority business can also increase your cost efficiency and maximize profit margins. MBEs can implement special cost saving strategies through benefiting from diversity spend requirements, taking advantage of many federal and state tax incentives, tax breaks and potential rebates. Unlike the tax incentives mentioned in the previous point, which target entities that do business with minority companies, these benefits are aimed at the MBEs themselves and reduce their costs or taxes. You can increase revenue by taking advantage of programs that reduce overall expenses for your MBE partners and suppliers.
Brand awareness is one of the most important aspects of a business, and working with a MBE can help give it a boost. Partnering with a minority-owned business can show that you support minority communities, which is a great public relations angle. MBEs are generally more connected to their local community. This can result in unique product ideas from undeserved markets, or can mean your brand gets free publicity in areas where there may not have previously been marketing and advertising efforts. These types of business relationships increase brand recognition and could help win future deals.
Minority owned businesses commonly bring innovation to the table because many have to standout against larger competitors. Minority businesses tend to have group dynamics that are more genuine and personal, which can lead to new ideas and fresh perspectives on established products and markets. Having a variety of perspectives available can foster innovation and collaboration, meaning more angels are considered.