Cayenne Consulting

How Marginalized Business Owners Can Benefit From Certification

How Marginalized Business Owners Can Benefit From Certification

Ownership Certification Programs

Small business owners from underrepresented groups face unique obstacles when it comes to establishing and growing their organizations — from securing capital, to closing sales, to gaining access to educational resources.

To help offset some of these challenges, there are many diverse ownership certification programs available at the federal, state, and local levels, each designed to increase opportunities for underrepresented entrepreneurs. But with so many options, selecting the right certification (or certifications) for your business can seem a bit overwhelming.

Knowing more about the requirements and benefits for each of these programs can help you determine which options best align with your individual background and your overall business strategy.

Let’s review the programs one at a time.

8(a) Small Business Certification

The 8(a) Business Development Program is a nine-year program created by the U.S. Small Business Association (SBA) to help provide equal opportunities to organizations owned by socially and economically disadvantaged individuals. Businesses certified through this program are eligible to compete for set-aside and single-source contracts. They also qualify for guidance, training, and mentorship opportunities.

The 8(a) certification may be right for your business if you:

HUBZone Certification

In addition to the 8(a) certification, the SBA also offers certifications to businesses located in historically underutilized business zones (HUBZones). To reach its goal of awarding 3% of all federal contract dollars to HUBZone-certified companies, the government limits competition for certain contracts to HUBZone businesses and gives preferential consideration to those businesses in open contract competition.

The HUBZone certification may be right for your business if:

WOSB Certification

The SBA also offers certifications for Women-Owned Small Businesses (WOSBs) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) to help level the playing field for female entrepreneurs. Firms that qualify for the WOSB Federal Contracting Program are eligible to compete for federal contracts in specific industries where women-owned businesses are underrepresented. Participants can also continue competing for contracts under other socio-economic programs.

The WOSB certification may be right for your business if:

You may qualify for the Economically Disadvantaged WOSB (EDWOSB) program if your business is also owned and controlled by one or more women who each have:

WBE Certification

The Women’s Business Enterprise National Council (WBENC) is a non-profit organization dedicated to helping female entrepreneurs compete in the marketplace. Becoming a WBENC-certified Women’s Business Enterprise (WBE) gives businesses improved visibility with corporate and government buyers, access to mentorship and networking opportunities, the ability to take advantage of educational and development programs, and eligibility for additional recognition and awards. The WBENC is also approved to offer third-party certification for the SBA’s WOSB program, so applicants can save time by working toward both certifications simultaneously.

To qualify for a WBE certification, your business must:

MBE Certification

The National Minority Supplier Development Council (NMSDC) is another organization dedicated to elevating underrepresented small businesses through the Minority Business Enterprise (MBE) Certification. In addition to the ability to bid on exclusive federal contracts and corporate procurement opportunities, this certification also offers the benefit of strategic networking and educational resources. If you’re a business owner from a minority group — including Asian-Indian, Asian-Pacific, Black, Hispanic or Native American — the MBE certification may be right for you.

To qualify, you will need to:

LGBTBE Certification

The National LGBT Chamber of Commerce (NGLCC) is a nationwide advocacy organization dedicated to advancing opportunities for LGBTQ business owners through the LGBT Business Enterprise (LGBTBE) certification. Qualified businesses gain the ability to compete for contracts within the NGLCC’s network of corporate partners. Certification also unlocks access to the NGLCC national conference, inclusion in the organization’s online database, eligibility to participate in other development programs, and more.

This certification may be right for your business if:

Other State and City Certifications

While specific titles and requirements vary, chances are if your business qualifies for one of the national certifications detailed above, you also qualify for a parallel certification in your state or city. Across the U.S., a wide variety of organizations are dedicated to supporting underrepresented and disadvantaged businesses on a local scale. Do your research and, if possible, work with local certification experts to explore opportunities in your area.

As consumer support for social responsibility continues to drive government agencies and private corporations alike to increase diversity requirements among their partners and suppliers, opportunities for historically underrepresented entrepreneurs will only continue to grow. Incorporating the right certifications into your business strategy now can make a significant difference in long-term outcomes by unlocking access to critical resources, networks, and revenue streams needed to succeed.

What Next?

The benefits of becoming certified are clear. Unfortunately, the process of achieving certification is cumbersome and highly bureaucratic. If you would like assistance in selecting and pursuing one or more of the small business certifications described above, we would be glad to help. Learn more about our services and then fill out our contact form for a free review of your situation.

Exit mobile version