How Entrepreneurs Can Use an MWDBE Certification to Enter New Markets

The benefit of being and MWDBE is that various state and other governmental authorities mandate that MWDBE certified firms must receive a certain percentage, usually between 25%-40% of any prime contract that is funded by the government. For example, in New York State MWDBE Construction Management firms usually get 35% on average for some very large and lucrative public works construction projects. But as in all markets, where there is a big demand or, this case opportunity, there is also much more supply, that is, competitors.

But what if a firm looked at smaller niche markets. Markets where, while there is still opportunity, ie. government funding jobs and contracts, but a very limited range of qualified competitors. My experience concentrates on the AEC market, that is Architecture, Engineering and Construction. But there are many other markets that MWDBE firms can enter, both with the AEC industry and others as well, think education, health care, housing.

If a entrepreneur who is qualified for an MWDBE certification were to do some good research, she/he could probably find small niche markets within which millions of dollars is being spent by the government, a portion of that money is probably mandated to go to an MWDBE. Naturally, this would be somewhat limited to the person’s chosen profession, but even ambulance service contracts, in certain states, are mandated to be apportioned to MWDBE firms.

This represents a safety net available for these firms or start ups, so as to facilitate the entry into new markets. Once established in the market, then a firm can decide if it wants to expand away from the state mandated revenue pool, and become primes themselves.

The legislation behind the MWDBE regulations was put there for a purpose, to help a certain sector of the population build businesses that did government work. A smart entrepreneur could find a very lucrative business in a haystack, if they’re smart enough.

Entrepreneurs Spur on Company Formation in Dubai

World-class infrastructure, astonishing architecture, huge industrialization, top-notch luxury services and being named as a renowned destination for leisure – this is Dubai, aptly called the ‘city of gold’. Dubai is known to be the commercial hub of United Arab Emirates. It is not only a major attraction for small time entrepreneurs from around the world venturing into company formation in Dubai, but also a nesting place for leading companies wanting to expand their operation in the Middle East and African regions.

The Dubai government has left no-stone unturned to attract foreign investors in this region of affluence and treasure, which makes the revenue system of Dubai’s economy diversified unlike its counterparts within the United Arab Emirates. In the current scenario, the oil dependency of Dubai contributes not more than 5% of its entire economy. Much of the wealth is created by its dynamic economy systems that the city follows with an aim to make Dubai the entrepreneurial capital of the world. The cherry on the top is the upcoming Expo 2020 that also plans to exaggerate the economy further.

With an aim to outgrow new business prospects for potential innovators and businessmen UAE’s Vice President and Ruler has set up a fund to finance innovation worth AED 2 Billion. Thus if you have a budding business personnel inside you, this is the right time to explore the UAE market.

Apart from all the encouragement and opportunities, setting up a company in Dubai can be tedious. With several exclusions in jurisdiction, business types, documentation, governmental approvals and more. Especially in terms of a foreign investor, understanding the implied laws and restrictions, barricades of language and cultural constrains as well as other essential requisites are a matter of attention.

Nevertheless, the Department of Economic Development (DED) in Dubai has made several attempts to make business formation in Dubai an easy process. Supportive towards launching business entrepreneurs and expanding their operations effectively, the DED also has online portals for the procedures.

The set of procedures stated by the Department of Economic Development (DED) for company formation in Dubai: Type of Business – this may vary from being a Limited Liability company, Free Zone or Offshore; Proprietorship / Partnership – depending on the type of business partnership or 100% ownership needs to be determined; Legal Form – categorizing your ownership under legalities and drafting a business structure based on jurisdiction; Trade Name and Trade License – a name for all your business activities which is then licensed; Permissions and Approval – number of documentation and approval are required from various governmental bodies and social institutes; Drafting a MOA / LSA – a Memorandum of Association (MOA) or Local Service Agent (LSA) agreement is drafted between the shareholders or the partners of the company; Premises of Proceedings – acquiring a rented premises for conducting business; Licensing Approval – Federal or the Local departments of the respective jurisdiction provide licensing approvals.

The procedures may vary from company to company depending on the requirements of the business activity. Under such circumstances appointing a business setup service provider can be a fruitful decision, that will not only deal with the governmental works but also guide you towards smooth-flow of your business.