TRUiC Explains Women-Owned Business Certification in the US

In the new age of female empowerment, women who are entrepreneurs are shown more support and opportunities than ever before and women-owned business certification is vital for future growth. TRUiC values this opinion and has laid out a solid foundation of valuable information that can act as a helpful guide to women-owned businesses who want to take their companies to the next level with certification. To make your business successful, women business owners who become certified are able to discover new opportunities, gain money through government contracts, and secure access to training resources to make your enterprise successful.

Becoming a certified woman-owned business

There are many different types of certifications available, yet research revealed that ample corporate and government agencies didn’t acknowledge the advantages of contracting with women-owned businesses until just over 20 years ago when the government outlined an objective to award “at least 5% of all federal contracting dollars to women-owned small businesses each year.” In 2015 the goal was achieved when $17.7 billion of federal contracting dollars were available for small businesses and were awarded to Women-Owned Small Businesses (WOSB).

WOSB is the main certification program for women-owned businesses seeking to increase their growth and is directed by the Small Business Association (SBA), and according to them, “government agencies reserve contracts for small businesses that are certified in the SBA’s contracting programs.” More women-owned businesses can benefit from the Small Business Association as their aim is to increase the number of industries included in the certification of WOSB which then allows women business owners to be part of the North American Industry Classification System (NAICS), used by the federal government to classify businesses.

There is also a subdivision of the WOSB program: the Economically Disadvantaged Women-Owned Small Business (EDWOSB) certification. The playing field for small businesses owned women is leveled out by bothe the WOSB and EDWOSB since they are nationally recognized certification programs that allow access to federal contracts which have been “set aside” specifically for WOSBs in underrepresented industries.

This means that by becoming a Woman Business Enterprise (WBE), one can ultimately gain access to federal contracting money and be provided with more growth opportunities and financial assistance than ever before.

Qualifications needed to become a certified woman-owned business

Qualifications to become a certified woman-owned business will vary depending on the certification for which you apply.

The following mentioned are some of the general requirements for the women’s contracting program, according to the SBA website. Adhering to these guidelines will allow you to become a Women-Owned Small Business (WOSB) and secure your enterprise to additional funding:

• As a small business, qualification is obtained as a small business as per the SBA small business size standards, which usually use employee size and/or revenue as measures.
• Over 50% owned and controlled by a woman or women who are U.S. citizens.
• Be managed by women on a day-to-day basis where women must also be the ones who are making the long-term decisions for the company.
• The highest officer position in the company must be held by a woman during normal work hours and on a full-time basis.

Additionally, your business should adhere to the following criteria to become an Economically Disadvantaged Woman-Owned Small Business (EDWOSB), although there are some exclusions made for each:

• Have a personal net worth of less than $750,000.
• Have an adjusted gross income averaged over three years of $350,000 or less.
• Have a fair market value of all assets of $6 million or less.

The benefits of becoming a certified woman-owned business

As a certified women-owned business there are some key benefits you can look forward to, such as aiding in establishing credibility for your enterprise, increased visibility, and it can open up your business to new opportunities that would otherwise be inaccessible, such as the following:

• Access to educational opportunities, namely training programs
• Networking opportunities and mentorship programs
• Increased promotion and recognition for your business
• Increased access to funds through federal government contracts

Depending on the type of certification you obtain, it can take 15 to 90 days from when the full documentation is received for you to become a certified women-owned business. It is however crucial that you should plan far in advance since timing can be somewhat unpredictable.

Get Certified!

Ultimately, if your business qualifies, the benefits of certification in terms of business opportunities and federal government contracts make the process of applying well worth it, and obviously, preparation for your application will vary depending on which business certification you intend to apply for. By carefully considering the information above, hopefully, you will get well on your way to becoming a certified woman-owned business.

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