Thu | August 2022
Women-owned companies bring fresh perspectives and innovative solutions to the ever-changing business world. Despite women business owners' substantial contributions, their businesses often face unique challenges, such as limited resource access and systemic bias. A powerful tool to overcome these hurdles is obtaining a woman-owned business certification.
Being certified as a woman-owned business provides access to various benefits, from competitive advantages to credibility endorsem*nt. It's a strategic step that can propel a business forward, unlocking opportunities and resources designed to fuel growth.
This guide explores the advantages and benefits of becoming certified as a woman-owned business. We aim to inspire and equip women entrepreneurs with essential knowledge, helping them thrive in their respective industries. Let's dive in.
How to get certified as a woman-owned business?
Although eligibility terms vary, most Woman-Owned Business Certifications require at least 51% female ownership and management in a company. There are not one but several Woman-Owned certifications that will help you access federal, local, and private benefits. But if your primary concern is to qualify for federal programs and contracts, you will first need to be certified either as a:
Women Owned Small Businessor an Economically Disadvantaged WOSB.
If you’re looking for additional guidance and benefits, you can also receive certification from a third-party certifier (TPC) from the Small Business Administration. Below are three SBA-approved TPCs and their official sites for membership requirements and fees:
There are also other federal minority-owned business certifications that you can qualify for. Learn about them inthe benefits of being a minority-owned business.
Woman-owned business certification benefits
Great! You already covered the basics about winning certifications for successful women entrepreneurs. But are you still having second thoughts because of the paperwork needed to prequalify or the eligibility requirements? Getting your business certified as a women's business owner offers some of the following benefits:
Access to federal funds and contracts
The Small Business Administration, known as the SBA, must set aside at least 5% of all contracting dollars for women-owned businesses each year. Suppose your business is certified as a Women Owned Small Business or an Economically Disadvantaged WOSB. You can apply and possibly get funding from the SBA’sWomen-Owned Small Business Contracting Program. And this is only one of the billions of local, state, and federal dollars of opportunities available at local, state, and federal levels for women entrepreneurs with government certification.
Networking and educational opportunities
These certified organizations allow you to connect with inspiring businesswomen from diverse backgrounds. They also provide many other membership benefits, such as invitations to educational events, mentoring, and training opportunities.
Suppose you’re looking to raise your business reputation or validate your success. In that case, there are also a variety of federal and private grants and awards at your disposal as a woman entrepreneur.
New clients and profitable business partners
Working with women-certified businesses is a win-win situation. According to a recent study byHackett Group, it can increase a business's return on investment by as much as 130%. Another reason is that once you are certified, your business will be recognized as a preferred supplier in diversity programs. And guess what?75% of companies prefer supplier diversity programs, often found through certification agencies.
Tax benefits
There are several possible tax benefits that women-certified businesses, allied businesses, and investors could get access to. First, your business could get reduced tax liabilities for projects funded with federal or state grants or receive tax incentives. The federal government is also prone to offer tax incentives to those businesses and states that work with minority or women-owned businesses. Finally, some local and national agencies will also give investors tax credits and tax waiver inducements if they choose to buy into your minority-certified business.Supporting women-certified businesses is a win-win situation for everyone.
Access to new funding opportunities
Women still have to endure many hurdles when accessing working capital. Statistically, women are less likely to obtain loans or equity financing than men. But certification can be a particular plus in enabling funding opportunities ranging from your traditional bank loan to an alternative working capital provider.
If you faced rejection from traditional funding sources like banks or were asked for large amounts of personal collateral to move forward. There are many other funding alternatives at your disposal. You can find the complete list at How to get small business funding for women with bad credit.
Women-owned businesses with a diverse workforce arethe most innovative and agilein generating new and profitable growth opportunities. At One Park Financial, we want to empower women entrepreneurs by giving them quick and easy access to working capital to help them expand their operations. If you’ve been in business for at least three months and are already generating more than $7,500, you can check if youprequalify for working capital in only minutes.
Disclaimer: The content of this post has been prepared for informational purposes only. It is not intended to provide and should not be relied on for tax, legal, or accounting advice. Consult with your tax, legal, and accounting advisor before engaging in any transaction.
