Let’s face it! Business under the federal government is not as easy as it sounds. Though, the government has launched a plethora of financial support program for the small entrepreneurs, women and veteran especially, it’s quite obvious that even the federal marketplace is stricken with cut-throat competition. Now, when you are wondering if the WBENC Certification or similar other certificates will help you get contracts, the answer is a big “NO”. But, at the same time, experts would always suggest you to get the WBENC Certification, if you are a women-owned business. Why? Let’s find out here.
Why Get WBENC Certificates
First of all, getting WBENC Certification is more like a guarantee that suggests your business is completely women owned. It helps to gain competitive advantage with those looking for supplier diversity. More than that, government has a number of financial development programs, especially designed for the women. In that case, having one certificate really helps, at least you can stay a step ahead of the competition and get contracts. Plus, you can secure additional benefits as well, by getting your certification one step further.
The Center for Women & Enterprise offers women business owners to get the WBENC certification, which is a formal status of their diversity through a variety of certifications. Certification allows businesses to submit their bid for both public and private sector.
How Does it Work: The Modus Operandi
As a woman-owned business, with the required documents you may have been directed to certification by your clients. If you are a woman-owned business that is probably operating in the transportation industry, for instance, then you must pitch for clients that are looking for woman-owned companies to perform certain parts of their work. Since they are already aware of the business you operate, they might encourage you to fetch the certification. This way, they can stay assured about giving business to a certified firm that they prefer. In other cases, a woman-owned business will always seek out certificates to look for opportunities. However, there is some specific advantage of getting the WBENC certification.
1). Enjoy the privilege of Tax Incentives
The biggest benefit of the woman owned business with the WBENC Certification is the tax benefits. The federal government offers tax incentives to the entrepreneurs who come from minorities and belong to a socio-economically backward class. Additionally, tax liabilities are reduced for projects funded with federal or state grants or loans when the supplier is a women-owned business. In some states, tax incentives may be available. For any small business, such kind of tax benefits are surely a blessing and financially favorable.
2). Opens Doors to new Revenue Streams
As per the report of Hackett Group, working with the business with WBENC certificates can increase profitability right away. And, if luck favors you can get at least 130% return on investment, providing distinct competitive advantages. Additionally, the research shows that the procurement organizations who are working with the ones offering supplier diversity are known for getting discounts.
3). Diversifies Your Suppliers to Cater to Multiple Procurement Channels
Partnering with the business with WBENC Certification helps you gain access to a plethora of channels. However, it is still important to analyze if whatever you are offering suits their needs. Keep in mind that the WBENC-certified businesses give you the added benefit of building relationships with suppliers’ alliances.
4). Promotes Innovation and Creativity
You’d be surprised to know that the smaller companies are always a step ahead when it comes to innovation. There are companies who are known for offering the best of designs and bring the best of creativity on table, which the larger companies cannot always produce. Many women owned smaller companies bring you the advantage of agility, making course corrections, with faster turn-around time if required, and implementing innovative strategies when deemed necessary. In such scenarios, companies having WBENC certification are always chosen by the federal contractors.
5). Get You to Work in Diverse Markets
Businesses with WBENC-certification are one of the fastest growing sectors of the Federal economy. And, it’s already known that small businesses offer the most income to the government. By working in this segment you will get a chance to work in the diverse market, which will further initiate a significant economic growth. As a supporter of supplier diversity, a women owned business will be automatically more attractive to the corporations that are seeking second-tier sourcing suppliers that work with women-owned businesses.
Final Thoughts
According to WBENC, the WBENC certification is one of the most reliable certification of women-owned businesses, when it comes to the supplier diversity business program. This certification validates that a business ( be it a small or medium) is about 51 % owned, controlled, operated, and managed by a woman or women.
It aims to “foster diversity in the world of commerce. Diversity promotes innovation, opens new channels of revenue and creates partnerships that provide opportunities that fuel the economy.”
