A Guide for Becoming a Certified Women Business Enterprise

A certain type of certification increases the visibility of your business and its reputation. With this certification comes access to highly desired business opportunities and education and development programs. Most state and federal agencies assign a portion of attractive projects and contracts to officially recognized women owned businesses. In 2015, $17.7 billion of available federal contracting dollars was awarded to Women Owned Small Businesses. Simply put, by gaining the women business enterprise certification, you increase your chance of attracting and securing business projects and enable your business to reach new heights. The certification also allows you to leverage business funding, networking, and mentoring opportunities. While the benefits may look enticing, you still may be wondering what constitutes a certified women owned business.

What is a Certified Women Owned Business?

A for-profit business that has gone through a rigorous evaluation to ascertain that at least 51 percent of the company is owned, controlled, and managed by a woman or women is considered a certified women owned business. The female owners must be U.S. citizens who have made substantial financial investments into the business and oversee daily operations and long-term planning for the business. The process demands an in-depth review of business documentation and sometimes even an onsite visit.  There are 4 main types of certifications that are worth looking into: the SBA Women-Owned Small Businesses certification, the National Women’s Business Owners Corporation (NWBOC), the Women’s Business Enterprise National Council (WBENC), and the U.S. Women’s Chamber of Commerce. There are also certifications for female minority businesses. You should pursue the certification that best aligns with your needs and goals.

How to Become a Certified Owned Women Business

1. Visit the websites of the following agencies to gather more information about the process. Read the certifying agency’s standards, procedures, and requirements.
   • Small Business Administration
   • Women’s Business Enterprise National Council (WBENC)
   • National Women Business Owners Corporation (NWBOC)
2. If you would like to focus more on getting government work, check out your city’s official website to see if they have any relevant certification programs you could pursue.
3. The application process is grueling and time consuming, so start gathering required documents as soon as possible. Relevant documentation includes business licenses, federal income tax returns, profit and loss statements, resumes from senior management, payroll information, and legal documents. For example, the WBENC has a comprehensive list of everything you need.
4. Review documents, especially legal and financial documents, as thoroughly as possible.
5. If you ever need assistance with the process, do not hesitate to reach out to the agency’s representatives.
6. Certification fees range between $350 to $1,250. Pricing greatly depends on the agency, your business size, and its revenue.
7. Keep in mind who your target customer is. This should play a crucial role in deciding whether you pursue a federal or state certification. A federal certification works best for companies whose target customer is in the private sector. State certification is a better fit for businesses with a smaller scope.

You’re Certified! Now What?

1. Be proactive. Update your website and other relevant documents to reflect your new certification. Inform your clients and customers about the change and give details about what the certification entails. Get in touch with relevant agencies to inform them of your new status.
2. If you let your certification expire, you will have to start the application process from scratch, potentially losing business in the process. Maintain your certification and renew every year. 

CMA Global Inc. is now a certified women business enterprise. Read this interview with Jen Nguyen about CMA’s experience with the process.