Should I Become M/WBE Certified?
Posted by Warren Goodridge @Dec 1 2021
In 2018, the average woman-owned business generated half the amount of revenue as male-owned businesses in the United States. According to the American Express “State of Women-Owned Business” report in 2019, African American and Black women-owned business generated a tenth the amount of revenue of their non-minority female counterparts. Inequity in business opportunities continues to be an ongoing issue in the United States. Many minority and women-owned businesses still do not have access to many of the resources and tools that are afforded to non-minority male businesses.
Minority / Women-Owned Business Enterprise or M/WBE certification is an invaluable tool to provide marginalized groups with assistance and access to resources and business opportunities. At the State and Local level, when you are certified, your business is placed in multiple directories, providing your business with exposure and many new business opportunities. Many M/WBE programs also provide business owners with grant funding opportunities, access to training and technical assistance.
In New York City, the government looks to contract up to $25 billion dollars to M/WBE’s by 2025. In New York State, the goal has been set to utilize MWBE firms in 30% of State contracts. Federally, the government aims to contract at least 5% of all federal contract dollars with women-owned small businesses each year.
When applying for M/WBE Certification, the principal owner of the business be a minority or woman, that is 51% owner with direct control over the business operations. The documentation required for all programs is usually the same, requiring identification, business formation documents and proof of ownership.
Federally, Women-Owned Small Business Certification (WOSB) similarly provide women-owned businesses with opportunities to contract with the government.
