Why WOSB Certification Matters: A Look at the Advantages and Opportunities

Are you a woman entrepreneur in the United States looking for Government contracts? Then you no longer have to worry again as the Federal government has created an incentive plan for growing women-owned businesses.

As a woman entrepreneur, you may have already faced unfair discrimination and toxic competition from your counterparts. In order to reduce the gap between women entrepreneurs and men-owned businesses, the US government provides WOSB certification to small businesses that are owned by women.

Women in the US make up almost fifty percent of the country’s economy. Despite their significant contributions, entrepreneurs and applicants are still not aware of the WOSB as well as how it can benefit your business.

In this article, we will look at the ways the WOSB certification will be able to benefit your business. We will also be looking at the different requirements that you need to clear as a business to be eligible for the certification.

What is the WOSB certification?

Let us first understand WOSB certification so that we can then discuss its benefits. The Small Business Administration (SBA) awards the Women-Owned Small Business (WOSB) accreditation to companies that are at least 51% owned and operated by one or more women. The certification is intended to give female business owners the chance to compete for federal contracts.

In order to create a fair playing field for female business owners in the US, the US Federal Government launched the Women-Owned Small Business Certification scheme. The government accomplishes this by employing set-aside projects and contracts for businesses having a WOSB certificate.

The WOSB certification’s primary goal is to give female company owners the incentives they need to boost their financial situation. Additionally, it offers these companies chances for further expansion. The cost of the WOSB Certification is about $350. However, there is a cost reduction available for women who are struggling financially.

One or more women must own your company at least 51% in order to be eligible for the WOSB certification. Additionally, the women must be US citizens in order to be eligible. The SBA further states that a company may only be deemed a women-run business if a female leader or entrepreneur is actively participating in the management of the company.

What are its benefits?

The WOSB helps women business owners by giving them unique perks and chances to pursue commercial activities in the nation. The following are the WOSB certification benefits that you might receive from the SBA:

Separate Federal Contracts

The set-aside contracts are one such benefit that you can anticipate receiving as a women company owner with WOSB. Set-aside contracts are those that the federal government’s agencies reserve for women-owned small companies. These set-aside contracts provide preference to female entrepreneurs who belong to the predetermined classes of people who are economically and socially disadvantaged. By lowering the number of enterprises in the pool from which contracts are to be granted, WOSB benefits you by raising your chances of being awarded a contract by the government.

WOSB also helps women business owners by giving them more preference when applying for federal contracts. The government views WOSB as a group in need of assistance in starting its operations. As a result, it favours WOSB over other companies. Additionally, federal agencies are rewarded for doing business with women-owned companies.

Financial Options

To help small business entrepreneurs launch their enterprises, the US Federal Government’s Small Business Administration was founded. In this situation, the SBA offers a number of business financing alternatives for your organization as a woman business owner.

This is essential since companies need funding sources to grow. A quick loan approval process will result from having a WOSB Certificate. Additionally, compared to other financial institutions, the SBA offers loans with reduced interest rates. Consequently, it becomes a necessity for your company.

Access to Marketplaces

You gain access to new markets thanks to the WOSB, which also provides financial assistance to businesses run by women. The WOSB certification increases the company’s visibility by listing it in a database that is accessed by other businesses as well as by federal and state agencies.

Because of the increased visibility, which helps you to network with other business owners, your chances of getting business orders increase. EDOWSB also benefits your company by allowing you to compete with other companies for contracts with the federal and state governments.

What are its requirements?

As a business owner, you must first register with the System for Award Management (SAM) of the Federal Government before you can apply for the certification programme. This database contains a list of different business sellers from each of the 50 states. You can register for the SAM online through their website or by mailing your information and supporting documentation.

You will be given a Data Universal Numbering System (DUNS) number for your company once you have registered it with the SAM. The SBA will look for your company in the SAM Database using this DUNS number.

The WOSB certification benefits women entrepreneurs across the country in numerous ways. However, in order to get the benefits you need to clear the following requirements:

Size of your Company

You must adhere to the business size standards if you want your company to be certified. The SBA and the Federal Government determine a company’s size standard. The SBA considers your company to be small if its yearly sales is less than $7.5 million. Additionally, the SBA considers you a small business if your company employs between 1500 and 1000 people overall.

Control and Ownership

A company can qualify for the certification program, according to the SBA, if a woman or more women own 51% of the company. These female business owners must also be US citizens, and women must control the organization on a majority basis.

The company must also be managed largely by women in order to meet the last condition on the WOSB certification checklist for qualifying. You will be qualified for the certification, per the SBA, if women business owners like you actively participate in leading and managing the company.

Your WOSB accreditation is valid for a full year after the SBA approves your application. Beginning on the day your application was accepted, you must renew it every year.

According to SBA regulations, you must submit a renewal application for the certification 30 days before it expires. However, new female business owners are no longer required to provide this annual attestation. The Small Business Association currently employs outside officials to inspect businesses.

As a business owner, you are required by the SBA’s new law to submit your company to an external audit every three years.

Conclusion

The article serves as a roadmap for women entrepreneurs like you as you complete the WOSB certification for your company. The Federal Government offers it as a useful resource to female entrepreneurs. It eliminates any red tape and promotes competition by allowing you to submit bids for particular government contracts. However, as we have seen throughout the article, applying for the certification can be difficult and time-consuming. Every WOSB application is typically approved in 90 calendar days. Additionally, we advise you to look into third-party certification before submitting an application on the SBA website.