So you’re a businesswoman. Being a woman company owner offers several advantages in the pool of privately-held small firms in our nation. Most public organizations and local, state, and federal government buying agencies have policies in place that allocate a set amount of business to women-owned businesses. Obtaining Women-owned Business certification might be the difference between getting the job and not getting it.
You may be qualified for certification if your company is at least 51 percent woman-owned. You will be allocated a 5% minimum of federal government contracting dollars to women firms every year, with federal contracting dollars reserved for economically disadvantaged women-owned enterprises.
You’ll be eligible for federal contracts and economic resources if you get a woman business accreditation.
Though the women-owned business certification process is not without its difficulties, many business owners become disheartened during the process due to a lack of advice or a misunderstanding of how it works. If you determine that the women-owned small business registration is beneficial to you, here’s what you should know.
What Is A Woman-Owned Business?
“Women-owned business” appears to be a simple concept. However, there is a far more rigorous criterion for certifying or registering a firm as “women-owned.”
The Women-Owned Small Business Certification (WOSB) and the Women’s Business Enterprise certification (WBE) are two certifications for women-owned small businesses (WOSB). To qualify for the WBE or WOSB designations, women do not have to be the sole proprietor of a business. Still, they must own, manage, and control at least 51 percent of it. Furthermore, the female proprietor must be a citizen of the United States.
Types Of Women-Owned Small Business
There are two categories of certifications. The following are the eligibility conditions for each:
Economically Disadvantaged Woman-Owned Small Business (EDWOSB)
To be considered a disadvantaged women-owned small business, you must achieve all of WOSB’s standards and extra-economic criteria. The personal net worth of women company owners has to be below $600,000. Their average adjusted gross income over the past three years should be below $400,000. Every asset must have a fair market value of more than $6 million and demonstrate economic disadvantage.
These financial limits do not apply to equity in a business or a major property, funds put in formal retirement accounts, income reinvested or used to cover business taxes.
Woman-Owned Small Business (WOSB)
Your company must be for-profit and fulfil the Code of Federal Regulations’ definition of a small business to join federal programs like the WOSB program. Although certain women’s business enterprises may qualify under certain circumstances, operations must be principally headquartered in the United States.
Your company must also be held by women who are US residents at least 51 percent unconditionally and directly. The woman or woman in charge of daily operations, long-term choices, and the highest officer positions accessible must be a woman or woman. They must also work full-time at the business during regular business hours, while there is no requirement for the business to remain active. This way a WOSB-certified woman-owned business can be eligible for government agencies’ reserve contracts.
Steps To Getting Registered As A Woman-Owned Small business
Meet The Requirements
Business owners must recognize that the certification process is a significant time commitment. The prerequisites for submitting an application are quite strict and must be fully completed. Majority ownership is the most important condition for becoming a certified women-owned business.
To be eligible for certification and government contracts, a woman must hold 51% of the company. On the other hand, ownership is only one component of the equation. In this scenario, ownership may entail more than just one or more women. A woman must also hold the company’s highest position and be involved in the day-to-day management and the company’s strategic vision.
A woman must be a majority owner and a US citizen, and she should have been in the company for at least six months. As a business owner, if you fulfill these major conditions, you may begin putting together your application.
Get Organized
You will need to gather a comprehensive number of papers to submit your application. Getting everything collected is usually the most time-consuming and difficult aspect of the certification process. Suppose you’re not organized or haven’t maintained track of crucial business paperwork. In that case, it may be considerably more time-consuming and difficult.
You don’t need to be in the middle of the application process to become organized. Suppose you believe that being certified is something you will want to pursue in the future. In that case, you should begin collecting the appropriate documents and documentation as soon as possible.
You’re more likely to keep paperwork like your incorporation papers and copies of any leases on hand when you’re starting up.
Where To Get Certified
The next step is to get certified if you fulfill the criteria to be classified as an EDWOSB, WOSB, WBE, or everything. Certification is available in 2 kinds, much like most of everything in supplier diversity: third-party certification (TPC) and self-certification.
Despite self-certification being significantly more straightforward than TPC, many businesses today choose the Third-party certification. This assures a business supplier diversity program that your woman-owned business has been evaluated by a widely renowned organization, giving you ease in the case of a supplier audit.
You can use an affidavit to self-certify or use one of the legit third-party certification services:
Self-Certification
There are two options for self-certification: by downloading and filling out the affidavit form or following the Small Business Administration self-certification guidance. You’ll need to be logged into the System for Award Management and have current registration.
Certification By A Third Party
You can also get your WOSB certification from one recognized third-party organization. You may go through each organization and decide who you want to acquire your certification from.
- US Women’s Chamber of Commerce
- El Paso Hispanic Chamber of Commerce
- National Women Business Owners Corporation
- Women’s Business Enterprise National Council
After Getting Certified
After you’ve been certified, you’ll need to upload your present certificate as well as your joint venture agreements Small business administration to confirm your third-party certification (if applicable).
Finally, once you’ve been certified, you must apply for renewal every year to keep your certification. It will expire after the first year if you do not renew your certification every year. Thankfully, the renewal procedure is a lot easier and faster than the first application.
Final Thoughts
Women-owned businesses have access to many resources; all they need is the right desire to take advantage of them. We hope this step serves as a solid foundation for launching your ideal company. Women-owned businesses can benefit from a variety of channels.
FAQ
Is A Woman-Owned Company Considered A Minority Company
Certification confirms that a company is owned, managed, operated, and controlled by a person of color or a woman. So, yes once you’re certified, you can be a minority business enterprise.
Is It Possible For A private Sector Company To Obtain Accreditation From A woman-Owned Company
If you’re exclusively interested in most private companies’ contracts, a non-governmental group like the Women’s Business Center can help you get certified. According to the small business administration’s website, your firm must be small and predominantly managed by one or more women to qualify for the Woman-Owned Small Business Enterprise Development Center. The women must be United States citizens.
