More than 11.6 million firms are owned by women, employing nearly 9 million people, and generating $1.7 trillion in sales as of 2017. Some of these companies attract new business by getting a women-owned business certification designation.
If you’re a female business owner interested in creative ways to boost growth, getting a women-owned business certification can help. The benefits include increased market visibility, more networking opportunities, and new sales possibilities.
What is considered a woman-owned business?
Because of their minority status, special opportunities and assistance are available for women-owned businesses. To help provide a level playing field for women business owners, the government limits competition for certain contracts to businesses that participate in the women’s contracting program. According to the Small Business Administration (SBA), the federal government's goal is to award at least five percent of all federal contracting dollars to women-owned small businesses each year.
To be eligible for the women’s contracting program, your business must:
- Be a small business. The SBA’s size standards determine whether or not your business qualifies as small.
- Be at least 51% owned and controlled by women who are U.S. citizens.
- Have women manage day-to-day operations and also make long-term decisions.
- Run a for-profit business
- The woman/women owners must be U.S. citizens or Legal Resident Aliens
Advantages to women-owned business certification
There are multiple advantages and opportunities for women-owned business certification including:
- Training and educational programs exclusive to women owned small businesses
- Networking opportunities
- Connect directly with buyers looking meet their 5% subcontracting federal goals
- Access to leads for bids and proposals
- Access to purchasing agents
- Mentorship programs
WBE certification is necessary if you wish to participate in programs that require tracking the amount of business done with women-owned enterprises. Most local, state and federal government purchasing agencies have programs for woman-owned businesses. Here are 4 major ways to get awarded this certification.
The Small Business Administration (SBA) offers the Women-Owned Small Business (WOSB) designation. It’s worth considering if you’re interested in pursuing federal contracts. More information from the SBA is available here: Women-Owned Small Business Federal Contracting program.
Disadvantaged Business Enterprise certification, or DBE, is a federal designation performed by the state and applies to contracts through the U.S. Department of Transportation. If federal money is involved for a Department of Transportation contract, the state must include women at a pre-determined level. This certification presumes certain groups are disadvantaged, including women, black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian-Pacific Americans or other minorities.
Another business organization that certifies WBEs is the WBENC (Women’s Business Enterprise National Council) WBENC certification is accepted by more than 1,000 corporations, plus many federal, state and local government entities. WBENC is also an approved third-party certifier for the Women-Owned Small Business federal contracting program through the SBA.
Federal and State Certification
Federal and State Certification is another way to get certified In addition to private third-party certifiers like the WBENC and NWBOC, several state and local agencies offer certification.
When you are certified as a women-owned business
You’ve probably done a fair amount of work to get certified. Once you are designated, spread the good news. Show that you’re a certified women-owned enterprise on your website and in your marketing and promotional materials. It’s even worthy of sending a dedicated email to your customers.
How do I get certified as a woman-owned small business?
Getting certified as a woman-owned business takes time and patience. But it’s worth it. The first step you should take is to get organized.
There is a comprehensive list of documents needed for an application. If you don’t keep records of important business documents, pulling everything together can be time consuming and challenging.
The Women's Business Enterprise National Council (WBENC) has a list of required documentation on their site. Documents include information about financial structure, personnel, management information, and business debts.
It’s a good strategy to have help when you start to pull financial information together. You can look to your bookkeeper, accountant, or another financial professional to assist.
Incipio Workforce Solutions is a contract recruiting and human resources solutions company owned by Molley Ricketts. She has a head up on the competition by holding a Women Owned Small Business (WOSB) Program Certification through the Small Business Administration.
Molley says, “There are stigmas you can face as a woman business owners. But there’s power in finding other women-owned businesses to partner with. Finding strategic alliances with other women can be a huge advantage,” she says.
“More importantly, it’s important for women not to lose faith. Have a business plan and stick to your goals.” Read more about this SmartBiz Loans® customer and how the certification is helping her business grow here: Incipio Workforce Solutions.
DISCLAIMER: The SmartBiz® Small Business Blog and other related communications from SmartBiz Loans® are intended to provide general information on relevant topics for managing small businesses. Be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed. Please consult legal and financial processionals for further information.