The government is helping women entrepreneurs to compete for contracts by registering as women-owned small business.

What is the women-owned small business registration?

In a world of commerce where men dominate, the government is taking giant strides to ensure women-owned small businesses (WOSB) compete as well.  When the federal government calculates its annual $500 billion contract budget, it reserves 5% for small businesses owned by women. That means out of the 23% of prime contracts the U.S. government established exclusively for small businesses, $25 billion must go to small businesses that belong to women, as administered by the Small Business Administration (SBA). 

The program ensures that small businesses have a level playing field to compete for federal contract opportunities. It makes sure that larger corporations don’t overshadow economically disadvantaged or little-known small women-owned businesses when competing for federal opportunities. 

But for a WOSB to enjoy this rare privilege, the business must complete a registration and certification process with the SBA.

The SBA and Women-owned Small Business registration

Law mandates that the SBA implement and administer the program on behalf of the federal government. So the SBA draws upon government regulations as the framework of the WOSB program. 

The SBA conducts examinations to determine businesses eligibility. It also protests on behalf of small businesses, and conducts research to determine which industries are better eligible for the program at a particular time. It works with other agencies of the federal government to assist women-owned small businesses. 

What are the Benefits of Registering as a WOSB?

Following the signing of the new National Defense Authorization Act of 2013, economically disadvantaged businesses run by women now have an unlimited contracting potential. The new Act allows contracting officers acting on behalf of the government to award contracting money beyond the original limit stated in the Small Business Act. If your business is a registered WOSB with the SBA and with System Award Management (SAM), you will have access to bid for these uncapped contracting dollars.

Moreover, you will get exclusive bidding rights any time a solicitation is put forward with the WOSB. That means your business could be the first choice or the only business in line for that opportunity. 

In a nutshell, here are other equally vital benefits of registering as a women-owned small business:

• Very little or no competing contracting completion.
•  Create more bidding and subcontracting opportunities.
• Allows your business to become more visible to other corporate entities in the marketplace.
• Enhances business development and expansion.

What are the registration requirements?

To qualify for registration as a WOSB, the business must meet the following criteria:

• Be owned by a woman or women (with at least 51% ownership right).
• Be owned by one or more women who are citizens of the United States.
• The owner or owners’ personal net worth must be less than $750,000.
• The owner’s or controller’s adjusted average gross income is less than $350,000 for the past three years.
• Be owned or controlled by a woman or women whose personal assets don’t exceed $6 million.
• Have its day-to-day activities managed by women, who must also make the long-term business decisions.
• Be registered with the SAM like every other federal government contractor.

After you have obtained certification as a WOSB, you will need to update your registration once a year. To update and maintain your status, visit certify.SBA.gov and SAM.gov.