National Minority Suppliers Development Council
Providing a direct link between corporate America and minority-owned
businesses is the primary objective of the National Minority
Supplier Development Council (“NMSDC”), one of
the country’S leading business membership organizations. The
Council was chartered in 1972 to provide increased procurement
and business opportunities for minority businesses of all
sizes. An NMSDC certification is the accreditation most widely
recognized by corporate America.
The NMSDC has standardized procedures to assure consistent
and identical review and certification of minority-owned businesses.
These businesses are certified by NMSDC’S affiliate nearest
to the company’S headquarters. Standardized procedures assure
consistent and identical review and certification of minority-owned
businesses throughout the NMSDC Network. The NMSDC is the
only national minority business development organization providing
certification throughout the U.S. where MBEs are genuinely
minority-owned and operated, and ready to do business
The NMSDC’s definition of a minority-owned business
is a for-profit enterprise, regardless of size, physically
located in the United States or its trust territories, which
is owned, operated and controlled by minority group members.
"Minority group members" are United States citizens
who are Asian, Black, Hispanic and Native American. Ownership
by minority individuals means the business is at least 51%
owned by such individuals or, in the case of a publicly-owned
business, at least 51% of the stock is owned by one or more
such individuals. Further, the management and daily operations
are controlled by those minority group members.
For purposes of NMSDC’S program, a minority group member
is an individual who is a U.S. citizen with at least 1/4 or
25% minimum (documentation to support claim of 25% required
from applicant) of the following:
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, Indonesia, Malaysia, Taiwan, Korea, Vietnam, Laos,
Cambodia, the Philippines, Thailand, Samoa, Guam, the U.S.
Trust Territories of the Pacific or the Northern Marianas.
Black: A U.S. citizen having origins in any of the Black racial
groups of Africa.
Hispanic: A U.S. citizen of true-born Hispanic heritage, from
any of the Spanish-speaking areas of the following regions:
Mexico, Central America, South America and the Caribbean Basin
only. Brazilians shall be listed under Hispanic designation
for review and certification purposes.
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).
A minority business may be certified as a minority "controlled"
enterprise if the minority owners own at least 30% of the
economic equity of the firm. This occurs when non-minority
institutional investors contribute a majority of the firm’s
risk capital (equity). Under this special circumstance, a
business may be certified as a minority "controlled"
firm if the following criteria are met:
A. Minority management/owners control the day-to-day operations
of the firm.
B. Minority management/owners retain a majority (no less than
51%) of the
firm’s “voting equity”.
C. Minority owner/s operationally control the board of directors
appoint a majority of the board of directors).
The NMSDC Network includes a national office in New York
and 39 regional councils across the country. Currently, there
are 3,500 corporate members throughout the network, including
most of America’S largest publicly-owned, privately-owned
and foreign-owned companies, as well as universities, hospitals
and other buying institutions. The regional councils certify
and match approximately 15,000 minority owned businesses (Asian,
Black, Hispanic and Native American) with member corporations
which want to purchase goods and services. Once certified
and part of the NMSDC Network, over two-thirds of minority
business enterprises (MBEs) confirm business increases due
to their partnerships with the Council’s corporate members.