The Definitive Guide For Women-Owned Businesses

Women-owned businesses account for approximately 22.3% of all U.S. employer firms — around 1.3 million businesses — generating an estimated $2.1 trillion in receipts and employing 11.4 million people, according to the Census Bureau’s most recent Annual Business Survey. Women also own 12.9 million nonemployer businesses, making up 42% of that category nationwide.

The Federal Government and many of America’s largest corporations actively prioritize sourcing from certified women-owned businesses, making certification one of the most impactful steps a woman entrepreneur can take. Read on to learn about the different women-owned business classifications, how certification works today, and what resources are available. 

What Is a Women-Owned Business? 

There are three primary types of women-owned business designations, each with its own requirements: 

Classification	Who it’s for	Certified by
WBE (Women’s Business Enterprise)	≥51% owned/controlled by women	Third-party (WBENC, others)
WOSB (Women-Owned Small Business)	≥51% owned/controlled by women; must qualify as small business	SBA (federal)
EDWOSB (Economically Disadvantaged WOSB)	All WOSB requirements + personal net worth/income/asset limits	SBA (federal)

A business may also qualify for the 8(a) Business Development Program as a secondary designation. 

How to Become a Women-Owned Business 

WBE Requirements 

• At least 51% unconditionally and directly owned and controlled by one or more women who are U.S. citizens 

• Women must manage day-to-day operations 

• A woman must hold the highest officer position in the business 

WOSB Requirements 

All WBE requirements, plus: 

• Meet the small business size standard for your primary NAICS code 

EDWOSB Requirements 

All WOSB requirements, plus: 

• Personal net worth (assets minus liabilities) is less than $750,000, excluding ownership in the business, primary personal residence, income reinvested or used to pay business taxes, and funds in retirement accounts 

• Adjusted gross income averaged over three years is $350,000 or less, excluding income reinvested or used to pay business taxes 

• Fair market value of all assets is $6 million or less, excluding income reinvested or used to pay business taxes 

Find more information about women-owned small business categories on the Small Business Administration’s website. 

Becoming Certified as a Women-Owned Business 

There are two paths to certification: SBA federal certification (required for federal contracting set-asides) and third-party certification (used primarily for corporate supplier diversity programs). 

Self-certification is no longer accepted for federal contracting purposes — it was eliminated in October 2020. 

Federal Certification (WOSB / EDWOSB) 

All WOSB firms must apply for certification at MySBA Certifications — the SBA’s free online certification process — in order to compete for WOSB Federal Contract program set-aside contracts. Apply here.

The federal WOSB program carries a 5% contracting goal. The government aims to award at least 5% of all federal contracting dollars to certified WOSBs each year. 

Third-Party Certification (WBE) 

Third-party certification is issued by nationally recognized agencies and is the standard for qualifying under corporate supplier diversity programs. You only need certification from one agency. Well-recognized options include: 

• Women’s Business Enterprise National Council (WBENC) — the largest private certifier of women-owned businesses in the U.S. 

• National Women Business Owners Corporation (NWBOC) 

• U.S. Women’s Chamber of Commerce 

• WBENC-approved regional partner organizations — process applications and conduct site visits by geography 

For corporate supplier diversity programs, WBENC certification is the most widely recognized and accepted. 

Education and Training Resources 

Both government and private institutions invest in helping women-owned businesses grow. Whether you’re just starting or have been in business for years, these resources are valuable. 

Women’s Business Centers (WBCs) 

Set up and maintained by the SBA’s Office of Women’s Business Ownership, WBCs offer comprehensive training and counselling on topics from business planning to financial management. Especially helpful for socially or economically disadvantaged women entrepreneurs. Find your local Women’s Business Center. 

Women’s Business Enterprise National Council (WBENC) 

Beyond certification, WBENC offers national networking events, educational programs, scholarships, and access to a network of Fortune 500 corporate members actively seeking WBE suppliers. 

SCORE 

For over 50 years, nonprofit SCORE has helped small businesses — including women-owned — get off the ground through mentorship and education, often at no charge thanks to SBA support.

DreamBuilder 

Offers 14 online courses spanning dozens of topics specifically designed to help women convert business ideas into enterprises. 

8(a) Business Development Program 

A government-sponsored program for small disadvantaged businesses, with a four-year developmental stage followed by a five-year transition stage. Participants get access to specialized business training, marketing assistance, and mentorship.

Funding Your Women-Owned Business 

SBA Guaranteed Loans 

The SBA doesn’t loan money directly but it sets guidelines with partner lenders and guarantees repayment, so small businesses typically receive lower rates than non-guaranteed loans.

USA.gov 

The U.S. government offers other loan and funding resources beyond the SBA, including options specific to 8(a) businesses.

Crowdfunding 

Crowdfunding pulls small investments from a large pool of backers — a popular path for everything from product businesses to service firms. The SBA provides guidance on crowdfunding for small businesses. 

Contracting Opportunities 

Supplier Registration Platforms 

Corporate procurement teams use third-party supplier registration portals to find and vet diverse suppliers. Register your company today to get in front of Fortune 1000 buyers actively sourcing women-owned businesses. 

Women-Owned Small Business (WOSB) Federal Contracting Program 

The federal government aims to award at least 5% of all contracting dollars to certified WOSBs. To compete for set-aside and sole-source contracts, your business must be certified through MySBA Certifications. Third-party certification from a WBENC-approved certifier is also accepted, provided you submit your certification to the SBA. 

8(a) Business Development Program 

Participants may be eligible for sole-source contracts up to $4 million for goods and services and $6.5 million for manufacturing. Participants can also form joint ventures to bid on larger contracts. 

HUBZone Program 

The SBA’s Historically Underutilized Business Zone program assists businesses in economically depressed areas. Not restricted to women-owned businesses, but stackable with WBE/WOSB certification if you qualify.

Frequently Asked Questions

What’s the difference between WBE and WOSB?

WBE is a third-party certification (typically WBENC) used for corporate supplier diversity programs. WOSB is a federal SBA certification required to compete for federal government set-aside contracts. A business can, and often should, hold both.

Is self-certification still allowed for WOSBs?

No. WOSB self-certification was eliminated in October 2020. All businesses seeking to compete for WOSB federal set-aside contracts must now certify through the SBA here.

Do I need WBENC certification or SBA certification?

It depends on your goal. For federal government contracts, you need SBA certification via MySBA Certifications. For corporate supplier diversity programs, WBENC (or another approved third-party certifier) is the standard. Many women-owned businesses hold both. 

Can I hold WOSB certification alongside other certifications?

Yes. A business can hold WOSB/EDWOSB federal certification alongside WBE third-party certification, and if eligible, the 8(a) and HUBZone designations — each program has its own separate requirements.

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