What Are WOB Benefits? Guide to Women-Owned Business Benefits

Have you heard about WOB benefits, but you aren’t sure how they work? Read this article to learn more about women owned business benefits.

According to a report published in 2017, there are 11.6 million American businesses owned by women. This figure has risen significantly since then.

Not so long ago, the idea of a woman owning a business was almost laughable. However, the last hundred years have brought sweeping change, and the women of today are making a growing mark on the world of commerce.

There are many distinct advantages offered by female business ownership. Among these are the benefits that various government agencies grant to women-owned enterprises.

Read on as we look at woman-owned business benefits, and how you can claim them.

Certification as a Women’s Business Enterprise (WBE)

Many public agencies, including local, state, and national organizations, have systems in place that allot a certain amount of their business to female-owned enterprises.

However, it’s not as simple as ticking a box. To qualify for women-owned business benefits, you will have to seek certification.

There are a number of applicable certifications in this area. One of the most prominent is the Women’s Business Enterprise (WBE) certification.

The certification process is not as simple as you might imagine. There are various hurdles to jump before you can secure your cert.

The process tends to be very time-consuming. For this reason, many eligible businesses never certify as a WBE.

However, once the process is complete, the rewards are considerable.

Criteria for Certification

The basic criteria for certification are that your business is majority-owned by women, and controlled by women.

In terms of the former requirement, the majority in question is a simple one (51%). The control requirement is a little more complex, however.

Firstly, the person in ultimate control of the business (the CEO, in most cases) must be a woman. This person must partake in the active daily management of the company, and have the final say on all important strategic decisions.

Again, this is more than a box-ticking exercise. The certification authorities will look for proof that the woman in control actually has these powers.

Therefore, before you seek certification, it would be wise to ensure that you can prove the extent of your control over the business.

The woman in control must also be a US citizen.

Certification as a Women-Owned Small Business (WOSB)

The other main certification for female-run businesses is the Women-Owned Small Business (WOSB) certification. As the name suggests, this targets smaller businesses that are owned and run by women.

Operating as a small business presents challenges all of its own. A lot of tasks that you could avoid as part of a larger operation will end up falling to you.

One such task is payroll management. To streamline this process, there are tools that can allow you to create a pay stub online.

Advantages of Certification as a WBE or WOSB

While the process of certifying as a women-owned business can be challenging, the rewards at the end can be significant. Below are two of the ways in which you can realize business gains from certification.

Extra Business

Firstly, most public agencies have a policy dictating that a certain percentage of their business should be allocated to women-owned businesses. Once you’re on the mailing list of certification agencies, government entities can contact you to send some of this business your way.

The federal government doesn’t undertake any manufacturing activities itself. Anything it requires has to be sourced from a third-party provider.

That means that the percentage of business set aside for female-run businesses is a huge market. The government is a huge entity with significant needs in a lot of areas.

Tax Breaks

The federal government won’t offer tax breaks directly to women-owned businesses. However, that’s not to say that the tax system doesn’t work in your favor here at all.

If private companies choose to hire women-owned businesses to do contract work, tax incentives may be granted. These may come from both the state level and federal level.

This will make your business a more cost-effective option for customers than your rivals, thereby fueling demand.

Certification as a Disadvantaged Business Enterprise (DBE)

Another similar certification in this area is the Disadvantaged Business Enterprise (DBE) certification. This does not relate to female ownership, but rather to businesses whose owners are socially and economically disadvantaged.

How to Make the Most of Woman-Owned Business Benefits?

Certification as a women-owned business can afford a host of advantages. However, that’s only half the story.

To really take advantage of your female status, you need to take advantage of every opportunity it offers you.

Owning a business as a woman in a male-dominated world can often give you a unique perspective on your trade. If you bring this to bear on your business operations, it will reflect well on your balance sheet.

As well as this, the strength of the global feminist community will affect your outcomes positively as well. Advertise your female-owned status, and watch the support from like-minded women roll in!

Making Your Mark on the World of Business

It isn’t always easy being a woman in the world of business. The challenges of owning and managing your own enterprise can often be compounded if you’re the female minority in a male-dominated arena.

On the other hand, however, woman-owned business benefits are undeniable. From statutory allowances to the extra support from your community, the opportunities are there for you to exploit.

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