Women-led enterprises inject fresh perspectives and innovative solutions into the dynamic business landscape. Women business owners often encounter distinctive challenges despite their significant contributions, including limited resource access and systemic biases. Securing certification as a woman-owned business is one potent tool for surmounting these obstacles.
Attaining certification as a woman-owned business opens doors to many advantages, ranging from gaining a competitive edge to earning a stamp of credibility. It's a strategic move that can drive a company forward, unclosing opportunities and help foster growth.
This guide delves into the benefits and advantages of obtaining certification as a woman-owned business. Our aim is to inspire and equip female entrepreneurs with indispensable knowledge, empowering them to thrive in their respective industries. Let's embark on this journey."
Read more: Tax Benefits for Women-Owned Business
How to Obtain Certification as a Woman-Owned Business
While eligibility criteria may vary, most certifications tax benefits for woman-owned businesses typically necessitate a minimum of 51% female ownership and management within the company. There are multiple certifications available to woman-owned firms, each granting access to federal, local, and private benefits. However, if your primary objective is to qualify for federal programs and contracts, you will first need to obtain certification as either:
Women Owned Small Business (WOSB) or Economically Disadvantaged WOSB.
Woman Business Enterprise (WBE).
If you pursue additional guidance and extra benefits, you can furthermore opt for a diploma from a third-party certifies (TPC) approved by the Small Business Administration (SBA). Below, we deliver statements on three SBA-approved TPCs, along with links to their official websites, where you can find membership provisions and fee details:
The National Women Business Owners Corporation.
El Paso Hispanic Chamber of Commerce.
The U.S. Women’s Chamber of Commerce.
Furthermore, there are various other federal certifications available for minority-owned businesses, which you can explore in detail in our guide on the advantages of being a minority-owned business.
Benefits of Women-Owned Business Certification
You've already explored the fundamentals of obtaining certifications for successful women entrepreneurs. However, if you're still hesitant due to concerns about paperwork or eligibility requirements, consider the compelling benefits of certifying your business as woman-owned:
1. Access to Federal Funds and Contracts
The Small Business Administration (SBA) demands that at least 5% of all management contracting dollars be distributed yearly to women-owned interactions. Suppose your trade is approved as a Women Owned Small Business (WOSB) or Economically Disadvantaged WOSB. In that case, you can apply for and potentially secure funding through the SBA’s Women-Owned Small Business Contracting Program. This program is just one of numerous opportunities, encompassing billions of dollars, available at the local, state, and federal levels for women entrepreneurs with government certification."
2. Networking and Educational Advantages
Certified organizations open doors to invaluable networking opportunities, connecting you with accomplished businesswomen hailing from diverse backgrounds. Further, these organizations expand a multitude of membership blessings, including admission to informational and educational events, mentorship schedules, and valuable sports opportunities.
Furthermore, assume you want to improve your business's standing or showcase your accomplishments as a woman entrepreneur. In that case, you can wipe into an array of nationwide and private mandates and awards that are at your removal.
3. Forging New Client Relationships and Profitable Business Partnerships
Collaborating with women-certified businesses is a mutually beneficial endeavor that can yield substantial rewards. Recent research conducted by the Hackett Group underscores this advantage, revealing that such collaborations can amplify a business's return on investment by a remarkable 130%. This substantial boost in ROI is a compelling reason to consider engaging with women-certified enterprises.
Furthermore, securing certification bestows your business to be recognized as a preferred supplier in diversity programs. This recognition is pivotal in attracting new opportunities, as a staggering 75% of companies actively seek to partner with suppliers who participate in diversity programs, often identifying them through certification agencies.
By becoming certified as a woman-owned business, you position yourself for increased visibility and appeal in a corporate landscape that values diversity and inclusion. This opens doors to a wealth of potential clients and profitable partnerships, making certification a strategic move that can significantly enhance your business prospects.
4. Unlocking Tax Advantages for Women-Certified Businesses and Partners
Certified women-owned businesses, their allies, and investors stand to reap a host of potential tax benefits, creating a favorable environment for all stakeholders involved. Here's a breakdown of the tax advantages at play:
Reduced Tax Liabilities for Funded Projects: Women-certified businesses may enjoy reduced tax liabilities when undertaking projects financed through federal or state grants. These tax incentives can translate into significant savings and bolster the financial viability of such endeavors.
Federal and State Tax Incentives: The federal state is willing to expand tax inducements to businesses cooperating with juvenile or women-owned industries. These motivations aid certified interchanges and incentivize larger commodities to commit to them, enabling assortment and inclusion in the company landscape.
Investor Tax Credits and Waiver Inducements: Investors who support minority-certified businesses may be eligible for tax credits and waivers at the local and national levels. These incentives can serve as powerful motivators for investors, promoting investment in women-certified enterprises.
In essence, promoting and supporting women-certified businesses yields a multitude of tax advantages, creating a win-win scenario for all involved parties. These benefits bolster the financial well-being of certified businesses and contribute to a more inclusive and diverse economic ecosystem.
5. Unlocking New Funding Opportunities
Accessing working capital remains a persistent challenge for many women entrepreneurs. Statistical disparities reveal that women encounter more significant difficulties securing loans or equity financing than their male counterparts. However, certification offers a distinct advantage by opening doors to a spectrum of funding opportunities, spanning from conventional bank loans to alternative working capital providers.
For those who've experienced rejection from traditional funding sources, such as banks or daunting demands for substantial personal collateral, a plethora of alternative funding options await exploration. You can explore a comprehensive list of these alternatives in our guide on 'How to Secure Small Business Funding for Women with Less-Than-Perfect Credit.'
It's essential to recognize that women-owned businesses, especially those fostering diverse workforces, are often the most adept at innovation and agility, paving the way for fresh and profitable growth prospects. At One Park Financial, our mission is to empower women entrepreneurs by facilitating swift and straightforward access to working capital to expand their enterprises. If your business has a minimum track record of three months and generates over $7,500, you can check your prequalification status for working capital in minutes."