October 31, 2024
It should come as no surprise that much of what is required to start a business is administrative. There are legal and compliance to-dos which can include registering your business, obtaining necessary licenses and permits, and staying current on tax laws and regulations. There are financial management to-dos which can include setting up a bookkeeping system, tracking income and expenses, filing taxes… There are human resource to-dos which can include talent acquisition, performance management, payroll process, and adherence to applicable labor laws… There are insurance to-dos which can include obtaining varying flavors of coverage (i.e. general liability, property, workers' compensation, etc.). There are operational to-dos which can include managing inventory, supply chain, and logistics - particularly for businesses manufacturing tangible goods. There are “Smarketing” to-dos (Sales + Marketing) which can include developing a GTM strategy, building brand, generating revenue and delivering customer experiences. Blah blah. And while technology can and should streamline many of these tasks, time and resources must absolutely be spent. No way around it. Or else. THEN, perhaps another administrative to-do if you were born, for example, a woman… and/or of color, and/or etc. (and therefore blessed and highly favored): … DIVERSE-OWNED BUSINESS CERTIFICATIONS. Having fully immersed myself in the world of what I’ll call XBEs, my stance is a curious, and arguably conflicted one. Some certification definitions and notes before I unpack said stance: The definitions: Minority Business Enterprise ( MBE ): For businesses owned by Asian Americans, Black Americans, Hispanic Americans, and/or Native Americans. Women's Business Enterprise ( WBE ): For businesses owned and controlled by women. Veteran-Owned Business ( VOB ): For businesses owned by veterans. LGBTQ+ Business Enterprise ( LGBTBE ): For businesses owned by individuals who are lesbian, gay, bisexual, transexual, queer, intersex, asexual, and/or etc. Disability-Owned Business Enterprise ( DOBE ): For businesses owned by individuals with disabilities. The note(s): An organization must be AT LEAST 51% owned by a member of the above groups to be eligible for certification. XBE certifications were created to address historical and systemic inequalities and disadvantages faced by diverse-owned businesses. They set out to level the playing field by making diverse businesses more visible to potential clients and partners, providing access to financing and investment opportunities, connecting diverse business owners with corporate buyers, helping corporations meet their diversity and inclusion objectives. The stance: On the one hand, certifications like MBE, WBE, VOB, LGBTBE, and DOBE can (and do) open doors and for diverse business owners. There are countless articles, testimonies, and think-pieces that substantiate this fact. So, if interested, happy googling, but I want to spend time on the other hand. (And yes, Midearix IS a certified minority and women’s business enterprise.) That said, here’s where I struggle: The reality is that diverse business certification is NOT a prerequisite for business dealings. Yet, my observation is that we’ve either conditioned diverse business owners to believe that certification is par for the course in pursuit of the American Dream or that "certified" should be synonymous with "enterprise ready" when I'd argue "nah." Going through the process myself, I had to confront and acknowledge my privilege. Said differently, not every diverse-owned business has the resources or inclination to pursue certification. The process is time-intensive, expensive, and red taped. Time : Varied depending on the specific certification and the organization providing it, sure, but call it a 60 to 120 day wait AFTER an application is submitted. Money : XBE fees can range from a few hundred dollars to thousands depending on region, business size, and whether or not the owner belongs to a chamber of commerce. Additional costs can include professional services, if accountants or lawyers are hired to prepare essential administrative documents, or site visits need be conducted to verify business operations, which could require travel expenses. Then, certs expire annually in most cases, so. Ready your dues, or lose your status. (“Brick wall”) Bureaucracy : If your application fee check bounces, as an example, there are organizations who will NEVER permit you to certify again. Questions that have crossed my mind, in no particular order (again, Midearix is certified): ... I need to pay an agency to validate my womanhood? ... I need to pay an agency to validate my Blackness? (I am VISIBLY and INDISPUTABLY of color, y’all.) ... Is there no additional interest in, for example, a live walkthrough of Midearix’s product and service offerings? Or our unique value proposition? Or, is a cleared check the bar? ... Has the certification economy grown at rate that, present day, renders it systemically incapable of driving inclusive commerce for the very businesses it intends to help? ... What sustains the power of social construct? And who should be responsible for redistributing that power if/when it makes more sense? ... Who should define what makes more sense? Midearix aims to be an active participant in (and at the forefront of) the conversations these questions inspire. And, in the between time, You do not have to be a certified XBE to partner with us. … That is the answer.