Tax Incentives for Your Business – Are you Eligible?
Did you know that the federal government provides tax breaks for businesses that use minority companies in procuring materials and supplies? And there is also a second tax incentive that reduces tax liabilities for companies using minorities that supply labor or services to a project funded with federal or state grants or loans?
Yes! There are economic benefits that your company could be taking advantage of, even if you are a smaller company: large and small corporations are seeking Minority Owned Businesses (MOB) due to policies that require the company to meet their supplier diversity goals. The benefits are only growing over time and meeting your diversity spend as a corporation cannot only help your business but allow you to expand into the government’s state and or federal realm as well. By meeting compliance requirements and utilizing a Minority Owned Business, companies can expand their revenue by acquiring larger purchase opportunities that mandate a specific amount of spend through a MOB. The domestic growth opportunities indeed increase as well due to the strength of each supplier.
In addition to all those benefits, there are several intangible benefits to working with a MOB: a MOB can offer more adaptability, flexibility and balance in comparison to non-MOB suppliers; cost saving strategies due to diversity spend requirements and taking advantage of numerous federal and state tax incentives, tax breaks and potential rebates. Partnering with a MOB can also strengthen your brand recognition, community outreach, company culture and marketing efforts.
Make sure to look for a certified MOB: due to the many stringent requirements that are put in place to become a certified MOB, you can rest assured that the company you are working with has extensive value and experience.
The value a MOB can give is crucial for a company’s culture as well. Diversity is high in value, by partnering with a MOB, it shows that your business supports the broadening of minority communities. MOB’s are well-connected in local businesses and can bring more opportunity through varies networking events. Certified MOB’s receive access to training programs that can enhance an employee’s skills as well as workshops and mentorship programs that provide strategies for selling to large corporations.
Argos Global Partner Services – a Minority-Owned Business
“Minority,” as defined by federal statutes related to business, includes people who are African-American, Alaskan Native, American Indian, Asian-American, Hispanic and women. Minority-owned business operations, also using the label “minority business enterprise,” are companies with minorities controlling 51 percent of the firm’s operations. Publicly owned businesses also qualify under the definition, but minorities, as defined under law, must control more than 50 percent of the stock offerings. According to Guidant Financials’ survey of more than 2,600 small businesses, 45 percent of business owners in 2018 were minorities compared to just 15 percent in 2015.
According to WBENC, the Women’s Business Enterprise National Council WBENC certification standard is the most relied upon certification of women-owned businesses as a supplier diversity business program. This certification validates that a business is 51 percent owned, controlled, operated, and managed by a woman or women.
Women’s Business Enterprise National Council WBENC aims to “foster diversity in the world of commerce. Diversity promotes innovation, opens new channels of revenue and creates partnerships which provide opportunities that fuel the economy.”
Argos Global Partner Services is a certified WBENC (Women’s Business Enterprise Council) and NMSDC (National Minority Supplier Development Council) member: it is also labelled as a Minority Business Enterprise, a company with minorities controlling 51% of the firm’s operations.
As an active participant, Argos brings new business opportunities and innovations to all of its clients. For more information about the WBENC and NMSDC certifications and upcoming events, you can visit: