Starting and growing a business as a woman can be both exciting and challenging. Obtaining a woman-owned business certification can significantly enhance your opportunities, giving you access to valuable resources and federal contracts. This guide will walk you through everything you need to know about women-owned small business certification from the different types of grants to the application process and how to get certified as a women-owned business.
What Is a Woman-Owned Business Certification?
A woman-owned business certification validates that your business is at least 51% owned, controlled, operated, and managed by women. This certification is crucial for gaining access to federal contracts and economic resources that can help your business grow. With this certification, your business stands out, demonstrating a commitment to diversity and inclusion, which is highly valued in both public and private sectors.
Types of Certifications
Two common certification for women-owned businesses options include woman-owned small business (WOSB) and economically disadvantaged woman-owned small business (EDWOSB) certifications.
Woman-Owned Small Business (WOSB)
To qualify as a WOSB, your business must be for-profit, meet the small business size standards defined by the Code of Federal Regulations, and be at least 51% owned by women who are U.S. citizens. The women owners must also manage daily operations and make long-term decisions.
Economically Disadvantaged Woman-Owned Small Business (EDWOSB)
For the EDWOSB certification, additional economic criteria must be met. The business owner’s personal net worth must be less than $750,000, their average adjusted gross income over three years must be $350,000 or less, and the fair market value of all assets must be $6 million or less. These financial requirements ensure that the business is truly economically disadvantaged and in need of additional support.
Eligibility Criteria
To qualify for a women-owned business certification, your business must meet certain criteria.
-
Ownership and Control
To be eligible for the certification, including minority women-owned business certification, your business must be at least 51% owned and controlled by one or more women. This requirement ensures that women have significant ownership and authority in the business.
-
Unrestricted Control
The women owners must have unrestricted control over the business. This means they should have the authority to make decisions without needing approval from non-women owners.
-
Management of Day-to-Day Operations
The women owners must be actively involved in managing the day-to-day operations of the business. This demonstrates their hands-on involvement and leadership in running the company.
-
Proportionate Investment
There must be a proportionate investment of capital or expertise by the women owners. This ensures that the women owners have a substantial financial stake or have contributed significant expertise to the business.
Benefits of Certification for Women-Owned Businesses
In addition to the obvious benefit of funding, applying for a woman-owned business certification has several advantages.
-
Access to Federal Contracts
One of the primary benefits is access to federal contracts. The government aims to award a minimum of 5% of all contracting dollars to women-owned businesses, providing a significant growth opportunity.
-
Increased Visibility
Certification increases your visibility in corporate and government supply chains. This can lead to more business opportunities and partnerships with large corporations and government entities.
-
Networking and Mentorship Opportunities
Certified businesses gain access to a network of support, including networking events and mentorship opportunities. These resources can help you connect with other women entrepreneurs and industry leaders, providing valuable guidance and support for your business growth.
-
Credibility and Marketing Advantage
Being certified adds credibility to your business and can be used as a marketing tool. Displaying your certification can attract clients and partners who value diversity and support women-owned enterprises.
How to Apply for Woman-Owned Business Certification
You can apply via self-certification or through a third-party certifier.
Self-Certification through the SBA
Applying for a woman-owned business certification involves a few straightforward steps. You can choose to self-certify through the U.S. Small Business Administration (SBA) or go through an approved third-party certifier. Self-certification is free and involves registering your business in the System for Award Management (SAM) and submitting necessary documentation to the SBA.
Third-Party Certification
Alternatively, you can obtain certification through third-party certifiers such as the National Women Business Owners Corporation, the U.S. Women’s Chamber of Commerce, the Women’s Business Enterprise National Council, or the El Paso Hispanic Chamber of Commerce. Each certifier has its own process and associated fees, but they all follow a similar structure involving a thorough review of your business documentation.
Steps to Get Certified as a Woman-Owned Business
Here’s an overview of the steps it takes to get certified as a woman-owned business.
-
Gather Necessary Documentation
The process of obtaining a woman-owned business certification involves several key steps. The first step is to gather all necessary documentation. This includes proof of ownership, financial records, and business structure documents, which are essential for the application process.
-
Choose Certification Method
Next, decide whether to pursue self-certification through the SBA or use a third-party certifier. Both methods are valid, but the choice depends on your preference and specific business needs.
-
Submit Application
Complete the application process by submitting all required documents. This may involve filling out forms, providing detailed information about your business, and undergoing any necessary reviews or site visits.
-
Receive Certification
Once your application is approved, you will receive your certification. With this certification, you can start leveraging the associated benefits to grow your business and access new opportunities.
Conclusion
In conclusion, obtaining a woman-owned business certification can open up numerous opportunities for growth and success. By understanding the different types of certifications available, assessing your eligibility, and following the application process, you can secure this valuable certification. Leverage the benefits it offers to enhance your business’s credibility, access federal contracts, and connect with a supportive network of women entrepreneurs. Take the necessary steps to get certified and watch your business thrive.
Frequently Asked Questions
1. What is a woman-owned business certification?
A woman-owned business certification verifies that your business is at least 51% owned, controlled, and operated by women. This certification can help you gain access to federal contracts and various support resources.
2. How do I apply for a woman-owned business certification?
You can apply through the U.S. Small Business Administration (SBA) or an approved third-party certifier. The process involves submitting documentation such as proof of ownership and financial records.
3. What are the benefits of obtaining this certification?
Certification provides access to federal contracts, increases your business's visibility, and offers networking and mentorship opportunities. It also enhances your credibility and can be a valuable marketing tool.
4. What documentation do I need to apply?
You will need proof of ownership, financial records, and business structure documents. Specific requirements may vary depending on whether you choose self-certification or third-party certification.
5. How long does the certification process take?
The timeline varies, but it typically takes several weeks to a few months. The process involves reviewing your application and conducting any necessary site visits.
6. Can I use the certification to get federal contracts?
Yes, one of the main benefits of the certification is access to federal contracts. The government aims to award at least 5% of all contracting dollars to women-owned businesses annually.
7. Do I need to renew my certification?
Yes, certification must be renewed periodically. You will need to provide updated documentation to prove ongoing eligibility and maintain access to benefits.
8. Can I certify my business if it is partially owned by men?
To qualify, your business must be at least 51% owned and controlled by women. If men own a significant portion or have control over operations, the business may not be eligible for certification.