CERTIFICATIONS: LEVERAGING YOUR STATUS AS A WOMEN OWNED BUSINESS

Certifications play an important role for women-owned small businesses. Certified suppliers are those that have successfully navigated a certification process offered through the Small Business Administration (SBA) or another third-party organization. The application process requires business owners to submit documentation confirming that the business is a women-owned small business (WOSB), a minority business enterprise (MBE), an LGBTQ+ business enterprise (LGBTBE), an economically disadvantaged woman-owned small business (EDWOSB), a women’s business enterprise (WBE), a small disadvantaged business (SDB), or a veteran-owned business (VOSB).

Certifications are essential if you plan to pursue federal contract or subcontracting opportunities. Congress sets federal small business procurement goals, which require the government to direct a percentage of spending dollars to small business concerns (SBCs) and certain socioeconomic categories of small businesses. Obtaining a certification can provide a substantial strategic advantage for women entrepreneurs.

Should you get certified when you start a business? That depends. Analyze where you are and think about where you want to eventually go. Conducting research will help you determine which certifications would most benefit your business. If you decide to proceed, start with the do-it-yourself certifications offered by the SBA.

Here is a checklist of considerations:

• What certifications are valued by a prospective buyer?
• Will the certification help me leverage my business for a contract opportunity?
• Is my business ready for the certification process?

Before you can obtain a certification from the SBA, you must register your business in the System for Award Management (SAM).  However, there is a distinct difference with “Supplier Diversity” programs and small business programs offered by the Small Business Administration.  The federal government is mandated by law to outreach and do business with women and minority owned businesses.  

The following is a summary of several ways that you can obtain certification:

1.) Do it yourself on the SBA website at certify.sba.gov.

2.) Register with an approved SBA third-party certification agency.

3.) Certify as a Minority Business Enterprise (MBE) from your local state or city.

4.) Certify as a Disadvantaged Business Enterprise (DBE) from the Department of Transportation (DOT).

5.) Certify with the National Minority Supplier Development Council (NMSDC) as a Minority-Owned Business.

As with anything in business, you should have a plan of action. Ask yourself: What companies/entities would I like to pursue for contract opportunities? If you plan to do business with a city government, research which registration and certifications are required.

Certifying your business with the SBA will make your company eligible for government contracts available exclusively to woman- and minority-owned enterprises.

The certification process for third-party certifiers includes a series of screenings, interviews, and site visits to ensure that you are a minority and/or woman-owned business. Third-party certifiers will charge a fee for services, and you are required to renew every year.

Choose the certification process that most aligns with your business goals. The SBA outlines criteria for women-owned small businesses and even offers a questionnaire that automatically determines your company’s eligibility for a variety of different programs.

Become familiar with Supplier Diversity Programs (SDPs) and the criteria for participation. SDPs are proactive business programs that encourage (or require) organizations to work with qualified minority-owned businesses. Do your research, visit websites and become familiar with “Supplier Diversity” programs, especially when you are doing business with corporations.

Private companies that receive federal contracts are required by law to encourage the participation of women- and minority-owned businesses by subcontracting them.  Therefore, it may be useful to track the companies that receive federal contracts and approach for a subcontract opportunity.

As you plan your certification strategy, research the companies that you are seeking to approach for business.  Many outline the list of certifications they recognize on their website. For example, Walmart’s supplier diversity page outlines a list of the certifications that are recognized by Walmart. The list clearly states that certifications from federal and local governments will be recognized.

Certifications offer no guarantees; you will still be required to compete for contracts. However, certification can get your foot in the door and help the private market recognize your business as a qualified diverse spend.

Overall, certifying your business will help you qualify for additional opportunities designed to support women- and minority-owned enterprises. As you think about long-term strategies, consider the certification process a chance to accelerate your growth and expose your brand to national, regional, and local clients.