Small & Woman-owned Business Certification Benefits
Are you having second thoughts about registering your business for certifications because of the paperwork needed to prequalify or the eligibility requirements? It took us two sessions of about 10-15 minutes each to complete the paperwork online at SupplierGATEWAY. We had all our required paperwork in one place including our DUNS number, Tax ID and other requirements.
Getting your business certified as a women's small 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’s Women-Owned Small Business Contracting Program. 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 by Hackett 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 must 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.
Not only are there benefits for the certified business but also for the businesses choosing to do business with you.
People often choose certified small and women-owned businesses (WBEs) because they want to support economic empowerment, gender parity, and vibrant communities, while also making socially conscious and economically sound choices. Buying from certified WBEs also provides access to unique products and services and can help businesses qualify for government contracts and funding opportunities.
Here's a more detailed breakdown of the reasons:
Supporting Women's Economic Empowerment:
Buying from WBEs helps invest in women's economic opportunities and promotes gender parity in commerce.
Community Growth:
Supporting local businesses, especially those owned by women, can boost economic activity and create jobs within communities.
Social Consciousness:
Many consumers are drawn to businesses that align with their values, and supporting WBEs demonstrates a commitment to social responsibility.
Business Benefits:
Access to Government Contracts:
Many government agencies prioritize awarding contracts to certified WBEs, offering them a competitive edge.
Funding Opportunities:
WBEs may have access to specialized funding programs and loans that are not available to other businesses.
Tax Benefits:
Some federal and state governments offer tax incentives or reduced tax liabilities for projects or
Networking and Mentorship:
WBEs often have access to networks and mentorship programs that can help them grow their businesses. It also makes them more desirable for membership in already existing network groups.
Unique Products and Services:
WBEs can offer unique perspectives and innovative solutions, as they often focus on niche markets or specialize in particular areas.
Greater Visibility:
Certification can increase the visibility of a WBE, making it easier for potential customers to find and do business with them. We do business on several platforms and most of them feature our certification to the public or we can feature it ourselves.
Resources
https://www.oneparkfinancial.com/blog/woman-owned-business-benefits
https://www.madetoorder.com/7-reasons-to-work-with-a-certified-women-owned-business/