In recent years, there has been a significant increase in the number of women-owned businesses that are securing government contracts. This is great news, as it not only promotes gender equality but also stimulates economic growth.

Benefits of Women-Owned Businesses in Government Contracting

Encouraging Diversity – Women-owned businesses bring diversity of thought and creativity, resulting in unique perspectives and innovative ideas. Promoting diversity and inclusion ultimately leads to better outcomes and solutions.

Boosting the Economy – According to the National Women’s Business Council, women-owned businesses account for 42% of all businesses in the United States, generating $1.9 trillion in revenue annually. Including women-owned businesses in government contracting leads to greater opportunity to stimulate economic growth and create jobs.

Meeting Contracting Goals – The government has set aside a certain percentage of all contracts for small businesses and women-owned businesses, which creates more opportunities for these businesses to win contracts and grow.

Encouraging Innovation – Many women-owned businesses are innovative and agile, which can lead to more creative solutions for government agencies. Providing high-quality products and services leads to greater customer satisfaction and better outcomes for the government agencies.

Overall, women-owned businesses bring a unique perspective and set of skills to government contracting, which can benefit both the businesses themselves and the government agencies they work with.

Challenges Faced by Women-Owned Businesses in Government Contracting

Limited Access to Capital – Access to capital is a significant challenge for women-owned businesses compared to their male counterparts. According to the Small Business Administration (“SBA”), women-owned businesses receive only 16% of all small business loans. This lack of funding can limit their ability to bid on larger government contracts.

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Limited Access to Networks – Women-owned businesses often have limited access to networks and resources necessary for government contracting, which can make it difficult for them to connect with potential government clients and partners. This can include limited access to industry associations, mentorship opportunities, and networking events.

Limited Access to Contracting Opportunities – Women-owned businesses may also face limited access to contracting opportunities. While the government has set contracting goals for women-owned businesses, often there are still limited contracting opportunities for these businesses.

Gender Bias – Women-owned businesses may face gender bias when competing for government contracts. This bias can be conscious or unconscious, and it can manifest in several ways, such as through the selection process in the awarding of contracts.

These challenges require the attention of policymakers, government agencies, and the private sector to create more opportunities and level the playing field for these businesses.

WOSB and WBE Certifications Help Overcome These Challenges

Official certification as a Women-Owned Small Business (“WOSB”) through the SBA for federal contracts and Women Business Enterprise (“WBE”) through the Women’s Business Enterprise National Counsel (“WBENC”) for state and local contracts can help set your business apart and open the doors for more award opportunities.

Access to Contracting Opportunities – One of the most significant benefits of SBA WOSB Certification is access to federal contracting opportunities set aside for WOSBs. The federal government has set a goal to award at least 5% of all federal contracting dollars to WOSBs each year. This means that from the over $600 billion the federal government allocates for contracts annually, at least 5% or approximately $30 billion is obligated for prime and subcontracts for certified WOSBs.

The WBE Certification is one of the most widely recognized and respected certifications in the nation for state and local contract award opportunities. This means that there are opportunities specifically designated for women-owned businesses, which can be easier to win than open competition contracts.

Marketing Advantage – WOSB and WBE combined certifications are accepted by hundreds of corporations, as well as federal, state, and local government agencies. These certifications are an important marketing tool for expanding a company’s visibility among decision makers in corporate and governmental supply chain diversity and procurement organizations.

Many government agencies and corporations actively seek out certified women-owned businesses for their procurement needs. Being certified as a WOSB and WBE can help differentiate your business from competitors, demonstrate your commitment to diversity, and increase your visibility in the marketplace.

Increased Credibility – Certification as a WOSB and WBE increases your credibility in the eyes of potential clients, partners, and investors. It demonstrates that your business has been verified as being owned, controlled, and operated by women, and has met certain eligibility requirements. This can give potential partners and clients more confidence in working with you and may open new business opportunities.

Access to Resources and Networking – Certification as a WOSB and WBE also provides access to a range of resources, support services, and networking opportunities. Certified businesses can participate in training, networking events, industry associations, and access mentoring and counseling services. They may also have access to SBA-backed loans and other financing options.

The inclusion of women-owned businesses in government contracting is essential for promoting diversity, boosting the economy, and meeting contracting goals. While women-owned businesses may face challenges, being a Certified WOSB and WBE can provide significant advantages for those seeking government contracting opportunities.

FedBiz Access (“FedBiz”) has helped thousands of businesses get certified for government contracting. In addition to helping business get certified WOSB and WBE, FedBiz provides registration services to small businesses for certifications such as the 8(a) Business Development Program (“8(a)”), HUBZone Program (“HUBZone”), Service-Disabled Veteran and Veteran-Owned Small Business Program (“SDVOSB/VOSB”), and on the state-level Minority Business Enterprise (“MBE”), and Disadvantaged Business Enterprise (“DBE”). These programs help small businesses gain an advantage in government contracting with more access to contract award opportunities.

FedBiz also provides marketing packages to targeted buyers at the federal, state, and local government levels. An experienced fulfillment team takes the time to understand your business and ask questions to ensure you have a solid government contracting foundation.

As a leading government contracting business development and marketing firm, FedBiz offers offers research and engagement strategy coaching, registrations, set-aside certifications, and GSA Schedules.

FedBiz has over 22 years of experience working with thousands of companies worldwide to help them win over $35.7 billion in awards. From registration to award, FedBiz helps businesses succeed in the government marketplace.