WBE vs. WOSB Certification: Which Is Right for Your Business?
According to the Women’s Business Enterprise National Council (WBENC), roughly 40% of businesses in the U.S. are owned by women, generating $1.8 trillion a year. Unfortunately, this number represents just 4.3% of the nation’s total private sector annual revenue.
To help offset this gap, government agencies, and industry associations have set aside a percentage of their contracting or vendor dollars specifically for female-owned businesses.
These contracts can serve as a significant and reliable source of income for your business. Qualifying for these opportunities often begins with getting certified as a Women-Owned Business Enterprise (WBE) or a Women-Owned Small Business (WOSB).
While these certifications share some similarities in their requirements and benefits, there are some key differences that can help you determine which is right for you.
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WBE Certification
The WBENC is a national nonprofit that offers the WBE certification to qualifying female-owned businesses.
WBEs are commonly sought out by the private sector as well as certain local, regional, or state government agencies. If your women-owned business is highly localized and you want to provide your products or services to a specific community, a WBE certification can help you compete for local, regional, and state-level contracts. It can also help you connect more directly with large corporate buyers.
Once certified, your business profile will be added to the WBENC database, allowing corporate and government buyers to find you — and vice versa. You’ll also gain access to mentorships, professional development, and business development opportunities including a wide range of regional and national events that will help you network with potential customers and other businesses. Additional benefits include eligibility for regional and national awards and recognition, as well as the use of the WBE seal on marketing materials.
In order to qualify for the WBE certification, your business must be at least 51% owned, controlled, operated, and managed by a woman or women with U.S. citizenship. This woman (or women) must have unrestricted control of the business, a demonstrated management of day-to-day operations, hold the highest defined title in the company’s legal documentation, and a proportionate investment of capital or expertise.
The WBE certification may be right for your business if:
- You meet the requirements criteria above (further detailed here).
- Your product or service is targeted at corporations, retail, and/or government agencies.
- Your business has the capacity to provide a quality product or service for large contracts.
- You’re looking to develop a marketing strategy that targets corporations and state or local government agencies.
WOSB Certifications
The U.S. Small Business Association (SBA) created the WOSB certification to help qualifying businesses gain access to federal government contracts.
While the certification doesn’t guarantee you’ll be awarded federal contracts, you will be better positioned to compete since government agencies reserve 5% of their annual contracting dollars for women-owned small businesses. Nearly all federal contracts worth less than $150,000 are automatically set aside for certified small businesses.
Additional contracting opportunities are set aside for Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs). Because of this alignment with federal contracts, the WOSB program is limited to organizations with qualifying North American Industry Classification System (NAICS) codes.
If your women-owned business operates primarily under a business-to-business (B2B) model, getting WOSB/EDWOSB certification can help you gain exposure and grow on a national level. You’ll also gain access to the SBA mentor program which pairs female entrepreneurs with experienced government contracting officers for technical assistance, business development, and strategic support.
To qualify as a WOSB, your organization must be considered a small business according to SBA size standards. It must also be at least 51% owned, controlled, and managed by a woman or women with U.S. citizenship. To qualify as an EDWOSB, the woman or women who own, control, and manage your business must each have a personal net worth, income, and assets that meet the definition of economic disadvantage.
The WOSB/EDWOSB certification may be right for your business if:
- You meet the requirements criteria above (further detailed here).
- Your product or service is targeted at the federal government.
- Your business has the capacity to provide a quality product or service for federal contracts.
- Your primary NAICS code is eligible for WOSB federal contracts.
Regardless of which path you chose, a women-owned business certification can help you unlock new sources of revenue and new opportunities as a female entrepreneur.
Curious about becoming a certified women-owned business? We’ll help you determine which certification is right for you and help you get started with a complimentary consultation.