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What Qualifies As a Woman-Owned Business?

Woman-owned businesses are one of the leading sources that fuel our nation’s economy. More than ever, the US economy is dependent on the labor and dedication of women entrepreneurs. They are launching and operating businesses at an astonishing rate, executing with a great level of proficiency and competence.

The National Association of Women Business Owners states that there are 12.3 million businesses owned by women in the US. According to the Women’s Business Enterprise National Council, women-owned businesses generate $1.8 trillion every year. 

Helpful Resources For Assistance

As a business, you are always seeking ways to grow and expand. And if you are a female business owner, you have two options: the Woman-Owned Small Business (WOSB) and the Economically Disadvantaged Woman-Owned Small Business (EDWOSB) certifications. These certifications will assist you in obtaining government contracts and resources to help boost your company’s growth. 

The WOSB is a certification program that is run by the Small Business Administration or (SBA). Their aim is to provide access to resources that women-owned businesses can use to spur their business forward and expand. Additionally, it offers the opportunity to “compete fairly” for federal contacts and any other resources that target the promotion of women in business. 

The Economically Disadvantaged Woman-Owned Small Business or (EDWOSB) certification is a subcategory of the WOSB certification.

How To Qualify For Certification

In order to be qualified as a woman-owned small business or (WOSB), you must meet this criteria:

  • You must be categorized as a small business as defined by the SBA’s small business size standards. This usually comprises employee size or /and yearly revenue. It all depends on your industry code. 
  • The company needs to be 51 percent owned by women that are also U.S. citizens.
  • Women must be the ones taking care of all daily operations.
  • Women must also be the ones developing “long-term decisions” for their company.
  • A woman who is working on a full-time basis and during regular working hours must also have the highest “officer position” in the company.

In order to qualify for the EDWOSB, not only must your business meet the WOSB standards, the company owner must also demonstrate that they are at an economic disadvantage in the following ways:

  • Private net worth is less than $750,000
  • The adjusted gross income, when averaged over 3 years, was $350,000
  • The fair market value of all assets amounted to $6 million or less

How Can I Get Certified?

Currently, you have two different options to become certified. One way is to self-certify another way is to find an SBA-approved organization to certify your company.

Shortly after gaining certification with WOSB, you may begin searching for “federal contracting set-asides” on the FedBizOpps.gov website. In addition, you will also qualify for grants that specifically target businesses owned by women. 

The Key Takeaway

It is clear that women-owned businesses are leading the way in spearheading the US economy as well as creating jobs. Unfortunately, women-owned businesses generally lack sufficient assistance and resources to continue to grow and expand their enterprise. 

By getting certified with WOSB, women-owned businesses gain access to special funding and resources that could not be found in any other way. It’s hard enough trying to run your enterprise and juggling so many tasks to make it profitable. Eliminate the headaches and seek out the help you need to reach your business goals.