What To Know About Women-Owned Business Certifications

Women-owned businesses represent an important part of the economy, yet many encounter roadblocks in accessing opportunities. In fact, the state with the highest percentage of women-owned businesses, Alaska, only boasts a 25% rate of women-owned businesses. One strategy to level the playing field is to get certified as a Women-Owned Business (WOB) or Women Business Enterprise (WBE). Getting certified not only offers credibility and visibility, but also opens doors to government contracts, networking opportunities and financial resources.

How to get certified as a women-owned business

The certification process involves showing that your business meets the eligibility criteria to be recognized as women-owned. Here’s how it typically works.

1. Decide on the right certification.

Here are a few of the most popular women-owned business certifications:

Woman-Owned Small Business (WOSB). The WOSB certification is through the U.S. Small Business Administration (SBA) — an organization run by the federal government to support small businesses. This certification is designed to support women entrepreneurs by qualifying women-owned businesses for exclusive government contracting opportunities. It gives women-owned businesses better access to federal contracts and helps them grow in competitive markets.

Women’s Business Enterprise National Council (WBENC). The Women’s Business Enterprise National Council (WBENC) is a non-profit dedicated to helping women-owned small businesses. The WBENC certification creates opportunities in corporate and government supply chains. Beyond certification, the organization provides tools, resources and programs designed to help women-owned businesses overcome barriers and achieve long-term success.

National Women Business Owners Corporation (NWBOC). The National Women Business Owners Corporation is a third-party certifier that offers recognition for women business owners. They can help women entrepreneurs gain access to contracts, partnerships and resources that will support their growth.

U.S. Women’s Chamber of Commerce (USWCC). The U.S. Women’s Chamber of Commerce provides a certification that officially recognizes businesses as woman-owned, helping them stand out in the marketplace. Additionally, they lead advocacy efforts, host networking events and provide other resources.

2. Check your eligibility.

Most women-owned business or WBE certifications require you to meet certain eligibility requirements. While these will vary depending on the certification you choose to apply for, here are some of the common requirements you may want to consider.

• The business must be at least 51% owned and managed by one or more women.
• Women must manage day-to-day operations.
• You may need to be a U.S. citizen or legal resident.

3. Gather your documents and apply.

During the application process, these organizations will likely need some business documentation. This can include:

• Business license or registration documents.
• Financial records, such as tax filings and profit and loss statements.
• Identification for the women owners.

After gathering what you need, you can start your application. You can typically apply on the organization’s website. Review your application carefully to ensure all required documentation is included.

4. Become a certified business.

After submitting your application, there may be a review, which can include interviews or site visits. If approved, you’ll receive your certification along with instructions on how to access related benefits.

Women-owned business certification requirements

Certification requirements can vary a bit between programs, but here are some common ones you’ll see with most certification groups:

Ownership and control. To qualify, businesses must be at least 51% owned by women. Additionally, a woman may need to hold the highest leadership role — such as CEO or president — and be directly involved in key decisions about the company’s future. This includes hands-on participation in decision-making and management.

Compliance. Your business also needs to meet all licensing, tax and legal requirements to be eligible for certification. This means having the right permits, staying on top of taxes and following industry rules.

Business size standards. In some cases, your business may need to meet the SBA’s size standards for small business. These can vary depending on industry and are often measured by the number of employees of annual revenue.

Keep in mind that eligibility requirements can differ. Plus, some certifications such as the Economically Disadvantaged Women Owned Small Business (EDWOSB) may have more requirements. Check out your chosen organization’s website or FAQ page to find a full list of requirements.

Benefits to being certified as a women-owned business

Getting certified gives you more than just a badge — it can help you grow your business and reach your goals faster. Whether you want to secure a government contract, get access to supplier diversity and procurement executives at major corporations, or just want more recognition in your industry, certification can help you open doors to new business opportunities. Here are a few of the benefits of certification to consider.

Access to contracts. Certified women-owned businesses can gain access to government contracts set aside specifically for WOSBs and EDWOSBs. These opportunities are often in sectors where women-owned businesses are underrepresented. In the private sector, corporations may seek out women-owned suppliers as a part of their diversity initiatives. Having a certification can help get your foot in the door.

Connections. The certifying organizations often hold conferences and networking events that can help connect you with fellow women entrepreneurs and partners.

Funding opportunities. Some certifications can help you find new funding opportunities. This can include grant programs and introductions to investors and lenders specializing in small business loans for women. Certification doesn’t guarantee funding, but it can help make your business more visible to organizations and financial partners that offer it.

Mentorship and training. Many of these organizations also offer mentorship programs to help you learn from those who’ve been in your shoes. They can help you think through next steps and prepare for big opportunities. You can also get access to webinars, workshops and other resources.

Marketing. As a certified women-owned business you get the right to use logos like the “Women-Owned” logo or WBENC mark. These can help you stand out in a busy industry.

Does it cost money to become certified as a women-owned business?

Depending on which women-owned business certification you choose to apply for there may be a cost. The WOSB certification through the SBA is free. However third-party certifiers like the WBENC and NWBOC can cost money. The WBNEC charges for applications and recertifications based on gross annual revenue and the NWBOC charges an application fee and yearly renewal fee. The U.S. Women’s Chamber of Commerce has three tiers of yearly membership.

The Bottom Line

Getting certified as a women-owned business isn’t just a box to check, it’s a strategic move that can help lead to new partnerships, big opportunities and long-term growth. Whether you’re just starting your business or looking to grow, a certification can help provide you with the right tools and opportunities.