Black women account for 2.7 million US businesses but only average $24,000 annually in revenue according to the latest statistics by American Express. For comparison, all-women businesses earn $142,900 on average – which means that businesses led by Black women make less than 17% of the national average. That’s outrageous!
What can Black women do catch up – better yet – surpass our counterparts?
If you are able to compete in a Marketplace with less than 1% of your competition, how long would it take you to jump all over the opportunity? A company’s trajectory can be completely changed for the better when it competes in the under-tapped marketplace of the Federal Government. With government contracting work, you can open the doors to additional business that larger companies are not eligible to receive. Couple that with obtaining a Woman-Owned Small Business (WOSB) Certification and the sky is the limit!
The US Federal Government is the world’s largest purchaser of goods and services, spending around $1.1 trillion each year!
Yet, get this – less than 1% of small businesses in the US compete in this vastly under-tapped marketplace and that percentage is even smaller for Black women-led businesses.
Being the owner of a Certified Woman-Owned Small Business myself and having numerous clients who are as well, I get to see first-hand the benefits of leveraging this certification as a growth tool. So, what is this certification all about and how do you qualify?
In 2010 the US Small Business Administration (SBA) enacted a program to promote women-owned businesses by providing that at least 5 percent of all federal prime contracting dollars flow to women owned businesses. The Women-Owned Small Business program (WOSB) provides for special contracting preferences to businesses owned and controlled by women. The program is designed to help level the playing field for women-owned businesses so that they may compete more effectively.
By becoming certified under the Women Owned Small Business Federal Contract Program, a business can gain exclusive access to set-aside, non-competitive sole source, as well as, competitive federal contracts. This applies to contracts with a total value of up to $3.5 million for services and up to another $5.5 million for manufacturing. Getting government contracts can be acquired without the difficulties of the “regular” federal bid process.
Unfortunately, less than one percent of women-led businesses participate in the program in the entire country. This makes getting government contracts a much easier proposition for your business since competition in this marketplace is limited.
Additionally, women-owned businesses who are certified will become more attractive to larger government contractors to participate in joint ventures or team contracts.
To qualify for the WOSB program, your small business must:
• Qualify as a small business under the NAICS code assigned to a particular procurement;
• Be at least 51 percent unconditionally owned by one or more women who are U.S. citizens; and
• Be unconditionally controlled by one or more women who are U.S. Citizens.
