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

Key takeaways

A woman-owned business certification may lead to government contracts, funding, and other opportunities for underrepresented demographics. 

• A women-owned business certification verifies that your business is at least 51 percent owned and operated by a woman or multiple women [1]. 

• Acquiring a woman-owned business certification grants you access to the US government’s Women-Owned Small Business Federal Contracting Program.

• You can self-certify through the US Small Business Administration or a government-approved third-party organization.

Learn how earning a woman-owned business certification can set your business apart. Then, consider other ways to elevate your business and build your leadership skills with courses on Coursera. The University of Pennsylvania’s AI for Business Specialization is designed to help you learn how to apply artificial intelligence tools to support your business. You’ll have the opportunity to learn effective marketing strategies and reshape how you manage your business.

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. More specifically, it shows that women are actively managing the business, in total control of it, and/or have invested the majority of their capital or expertise [1]. 

To achieve certification as a woman-owned business, you must prove ownership and operation, which you can do via self-certification through the US Small Business Administration (SBA) or a government-approved third-party organization. While most of the process is conducted online, some third-party organizations require a site-visit interview with the female owner(s). You do not need to pass an exam or showcase skills.

Key benefits of a woman-owned business certification 

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

The goal of this program is for at least five percent of all federal contracts (in terms of dollars spent) 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. 

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

Example of benefits for woman-owned business certification

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. Currently, 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.  

Who should consider a woman-owned business certification?

Anyone who feels they may qualify for a 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 a woman-owned business certification. 

How to get a women-owned business certification

The first step to obtaining a 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 SBA-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. 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. 

Requirement examples

For example, if you’re pursuing a 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.  

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, 58 percent found the application process difficult, with 18 percent of non-certified respondents saying they forwent certification due to the time-consuming process [3]. 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.

Read more: Top 10 Skills for Women in the Workplace

Explore resources on Coursera to improve your business 

Subscribe to Career Chat on LinkedIn to get timely updates on popular skills, tools, and certifications. Explore more with our free business resources:

• Read our Career Chat issue: How to Start Your Own Small Business: 4 Steps to Take

• Learn new tools: How to Set Up a Google Business Profile

• Watch on YouTube: AI for Small Business: 3 Signs It's Time to Make the Leap

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