If you’re an entrepreneur, you know that competition is fierce. But did you know that there’s something that can accelerate your business and give you credibility against your competitors, including the big, well-known, and well-established ones? 

It’s clear that women-owned businesses are on the rise. According to the 2024 Wells Fargo Impact of Women-Owned Business Report, the growth rate of women-owned businesses outpaced that of men. Women-owned businesses continue to fuel the economy, representing 39.1% of all businesses, employing 12.2 million workers, and generating $2.7 trillion in revenue. 

Globally, the World Bank reports that one-third of all principal business owners are women, with those numbers climbing among the 18-34 age range. 

More businesses mean more competition, which raises the question of whether you should get certified as a woman-owned business for a competitive advantage. A woman-owned business means it’s at least 51% owned, managed, and controlled by women. 

WBE or WOSB ~ what do the letters mean? What about non-U.S.-based businesses?

According to the Federal Award Management Registration, a WBE is a Woman-Owned Business Enterprise, a state-level certification for companies where women own, manage, and operate at least 51%. The business must be for-profit, located in the United States, and owned by women who are U.S. Citizens or legal residents.

WOSBs, or Women-Owned Small Businesses, are similar to WBEs in their requirements. The most significant difference is that WBE certifications are at the state level, while WOSB certifications are at the federal level. This certification works well for women-owned businesses interested in federal contracting programs.

Outside of the U.S., weconnectinternational.org has certification programs in over 60 countries for women seeking global certification. 

Here are 3 reasons why you should consider getting certified:

• Likely Opportunities

Nothing in life is guaranteed, but some things are good bets. Jill Shackelford, co-founder of the Association of Women and Minority Contractors of Texas, works with female-led businesses to get them certified. 

When asked what the most significant return on investment is for women-owned business certifications, Shackelford says, “The biggest return is scaling your business by being presented with a vast supply of procurement opportunities for minority-owned firms—including women. There are goals on projects that require the use of women and minority-owned firms.” 

• Visibility in a Sea of Big Fish

Just about every business prioritizes more customers, revenue, and visibility. As mentioned earlier, being women-owned certified opens up designated opportunities within the federal and private sectors. 

Companies are looking for diversified suppliers in the private sector, and being certified gives your business a competitive advantage. With the rise of supplier diversity programs, your certification can speed up their decision process. As a matter of fact, recent reports found that approximately 75% of companies with supplier diversity programs found their match because of certifications. Small businesses compete with Fortune 500 companies for the same contracts, and your certification could make a difference. 

For U.S.-based companies, the federal government sets aside a certain percentage of all contracts for women-owned companies. Even if a federal grant isn’t feasible for your business, there are allocations at the state and local levels. 

• Networking and Mentoring Opportunities

Once certified, you can access resources to help you navigate the entrepreneurial landscape. Depending on the type of certification you receive, the SBA (Small Business Association) and the WEBNC (Women’s Enterprise Business National Council) can help connect entrepreneurs with leaders. Plus, there are continuing education and networking opportunities as long as you have a current certification. 

Yes, it takes work, and you’ll have to provide plenty of documentation. But, consider the possibility of an exciting pay-off if you win a contract or grant because you made the effort to get your business certified. It might just be the thing that tips the scales in your favor.

Photo Credits: Ketut-Subiyanto, Pexels