Woman-Owned Business Certification: Unlocking Opportunities for Success and Growth

Woman-owned business certification can potentially qualify your business for government contracts, funding, and similar opportunities geared toward underrepresented demographics. As such, this certification may give your business the competitive edge you’ve been looking for. Keep reading to find out if this certification is a likely good fit for you, the key benefits associated with woman-owned business certification, and how to start the certification process.  

What is a woman-owned business certification? 

Women-owned business certification verifies that your business is at least 51 percent owned and operated by a woman or multiple women. Even more specifically, it shows that women are actively managing the business, in total control of the business, and/or have invested the majority capital or expertise in the business. [1] 

To achieve certification as a woman-owned business, you do not need to pass a test or show off some skill; all you have to do is prove ownership and operation, which you can do via self-certification through the US Small Business Administration or a government-approved third-party organization. While most of the process is conducted online, some third-party organizations also require a site-visit interview with the female owner(s). 

Key benefits of woman-owned business certification 

The benefits of acquiring woman-owned business certification are myriad, but one of the most often touted benefits is access to the US government’s Women-Owned Small Business Federal Contracting Program.

The goal for this program is for at least five percent of all federal contracts (in terms of dollars spent, not the number of contracts) to be awarded to women-owned businesses in specific industries where women are traditionally underrepresented. Competition for federal contracts is further restricted to provide better opportunities for women-owned businesses at a specific economic disadvantage. Similar opportunities are also available for certified women-owned businesses at the state and local levels. 

For example, New York State has its Division of Minority and Women’s Business Development program, wherein women business owners can become minority and women-owned business (MWBE) certified and then gain access to state contract opportunities. To date, the state reports MWBE utilization of nearly one-third of all state contracts, with more than $29 billion contracted to MWBE-certified businesses [2]. Likewise, the City of New York Minority and Women-Owned Business Enterprises Program certifies businesses to provide greater contract opportunities for eligible entrepreneurs within the city.  

Additionally, depending on your certifier, you may enjoy opportunities for networking with other women entrepreneurs and access to educational events and mentoring programs. You may also be able to access capital via funds specifically designated for women-owned certified businesses across the state of New York. 

Who should consider woman-owned business certification?

Anyone who feels they may qualify for woman-owned business certification and who wants to reap the benefits of this certification should apply. The process is, in some cases, even free. 

Ask yourself:

• Do you want access to federal, state, or local government contracts that favor women and minority-owned businesses?

• Are you interested in applying for funds, loans, or grants designed for women and minority-owned businesses?  

• Are you in an industry that prioritizes supplier diversity or frequently receives government contracts (like R&D services, IT, or medical)?

• Are you at a unique economic or social disadvantage?

If you answered yes to any of these, you’re likely a good fit for woman-owned business certification. 

Steps to obtain woman-owned business certification

The first step to obtaining woman-owned business certification is determining which certification you want to pursue. 

For nationally recognized certification, you can self-certify via the US Small Business Administration for free or pursue certification through one of the US Chamber of Commerce’s recognized third-party certifiers. These include:

• El Paso Hispanic Chamber of Commerce

• National Women Business Owners Corporation

• US Women’s Chamber of Commerce

• Women’s Business Enterprise National Council

Each third-party certifier has its own benefits, fees, and certification processes. 

Application process and timeline

After you’ve chosen a certification route, pay close attention to eligibility and documentation requirements. For example, if you’re pursuing women-owned small business certification through the US Small Business Administration, you must meet business size requirements, show proof of citizenship for one or more women majority owners, and register your business within the official US government system for contract opportunities. You may also need to show documentation, including articles of organization or incorporation, operating agreements, and multiple income tax returns.  

Once you have confirmed eligibility and gathered all necessary documentation, you can submit your application to your chosen organization. The organization will then review your application and complete any other necessary steps (such as, for some organizations, a business site visit). Expect the review process to take anywhere from 90 days to eight months. 

Common challenges and how to address them

As you enjoy the aforementioned benefits, the necessary knowledge and foresight can help you overcome the few challenges of the certification process. Some obstacles might include a time-consuming process, high costs, and a lack of clear information regarding benefits from certain providers. 

A Goldman Sachs 10,000 Small Businesses Voices survey found that, of the more than a third of respondents who said they were women-owned small business certified, approximately 60 percent found the application process difficult, with 18 percent of non-certified respondents saying they forwent certification due to the time-consuming process. Likewise, many felt the federal government could do more to promote the benefits of certification [3]. Lack of personal organization is also cited as a hurdle to certification. 

However, if you first research your chosen certification program and its benefits thoroughly, understand what you’ll need to apply, and then take the time to gather your documentation and keep that documentation well-organized, you can make the process significantly easier—allowing you to enjoy the benefits of certification with minimal administrative headaches.   

Build skills and prepare for woman-owned business certification with Coursera

When you obtain woman-owned business certification, it can set your business apart, helping you achieve a greater level of success through broader access to contracts, funding, networking, mentorship, and more. 

Whether you’re still deciding if a woman-owned business certification is right for you or you’re in the process of obtaining that certification, consider other ways to elevate your business and build your leadership skills with courses on Coursera. 

The University of Pennsylvania’s Entrepreneurship Specialization is a five-course series designed to take you from opportunity identification through launch, growth, financin, and profitability. You’ll develop an entrepreneurial mindset and hone the skills you need to develop a new enterprise with potential for growth and funding.