The benefits of being a female-owned business
- 1 The benefits of being a female-owned business
The benefits of being a female-owned business
Last year was a challenging year for women in business (in 2020, women experienced “Inheritance”), female business owners are no exception. In their 2020 annual report, National Women’s Business Council (NWBC) said that from February to April 2020, the number of small businesses owned by women fell by 25%. Fortunately, this downturn seems to be over. Enterprising investors say, “The future is female“And pointed out that statistics before the pandemic show women-owned companies (especially start-ups)”It may be bigger than we thought. “
And our latest statistics on female business owners NWBC report It shows that they own 42% of all businesses in the United States (about 13 million female entrepreneurs), employ 9.4 million people, and earn $1.9 trillion in income. Even the total income of female business owners without employees exceeds $229 billion.
Benefits of owning a business as a woman
There are many reasons why women can benefit from owning a business. On the one hand, it frees you from the glass ceiling that still limits women’s income in business and their status in many companies in the country.
Certified as a female business owner
For many women, entrepreneurship is the path to an infinite future. So how can you use it? One way is to obtain certification. If you are a female business owner, obtaining a business certification will bring many benefits, including increasing the visibility of the company, gaining opportunities that might otherwise have not been possible, and the ability to win company or government contracts.
As a female-owned company, there are two types of certification:
- Women in Business Enterprise (WBE): This name is used by private sector organizations and many state and local governments that seek to do business with women-owned companies.
- Women-owned small businesses (WOSB): Federal government agencies use this name to find women-owned companies to conduct business. Small businesses owned by economically disadvantaged women (EDWOSB) are a subcategory of WOSB that meets the criteria for economic disadvantage.
Decades ago, the federal government set a goal of at least 25% of federal contracts awarded to small businesses and 5% to female business owners. Of course, female business owners can compete for any type of federal government contract. But some contract opportunities only apply to female business owners.
If you want to compete for federal contracts, check out the Small Business Administration (SBA) WOSB (Women Owned Small Business) Federal Contracting Program. Certain female entrepreneurs may also be eligible for certification Economically disadvantaged WOSB (EDWOSB).
The certification process of WOSB and EDWOSB has recently changed to make it “easier According to SBA, by improving the customer experience, qualified small businesses can participate in the program.
Go to this SBA to understand the certification process (free) website. Learn more about your options Or get Frequently Asked Questions. There is more information in beta.Certify knowledge base.
Private companies that do business with the federal government may need to sign contracts with a certain percentage of women-owned companies. Obtaining WBE certification can give your small business an advantage over larger companies when trying to obtain these contracts.
You can no longer self-certify.Companies must go through an approved third-party organization or SBA website at certify.sba.gov. Some organizations can help you complete the certification process (WOSB and WBE), including:
- El Paso Hispanic Chamber of Commerce
- National Women’s Business Owners Corporation
- American Women’s Chamber of Commerce
- National Committee of Women’s Business Enterprises
Each organization has specific guidelines, depending on the type of certification you seek. To obtain WOSB certification, your business must:
- Is a small business as defined by SBA (company size may vary depending on NAICS code)
- At least 51% owned and controlled by U.S. citizen women
- Let women manage daily operations and make long-term decisions
To qualify for EDWOSB, your business must:
- Meet all requirements of the female contracting program
- Owned and controlled by one or more women, each woman’s personal net worth is less than US$750,000
- Owned and controlled by one or more women, and the average adjusted total income of each woman in the first three years does not exceed US$350,000
- Owned and controlled by one or more women, each with personal assets not exceeding USD 6 million
Obtained WBE certification WBNCFor example, your company must have at least one or more women owning, controlling, operating, and managing 51% of the shares. “This means that one or more women must have unrestricted control over the business, proven management of day-to-day operations, and corresponding investment in capital or expertise.”
If you have already been certified by a third party or SBA, you will need to re-certify. However, for self-certified WOSB or EDWOSB with a valid WOSB or EDWOSB reserved contract, your company will still be certified for the entire life cycle of the contract.
In addition to certifying women-owned businesses, some certification organizations also provide membership benefits such as educational programs, conferences, social events, and matching opportunities.
Female business owner and money
Looking for funds It has been a struggle for female business owners for a long time. According to Crunchbase, Venture capital funding for women-owned companies has fallen Last year it was 27%. Although it has been several years old, the statistics shown in the previous report of the Small Business and Entrepreneurship Committee of the U.S. Senate, Obstacles to women’s entrepreneurship in the 21st century,Has not changed much. The report shows that women only get 16% of all traditional small business loans.
If you are a female company and are looking for Small business loan, You have a variety of options, including:
- Key4Women from Key store Provide regular loans (free for members) to female entrepreneurs participating in the Key4Women program.
- This Women’s Economic Risk Group Provide entrepreneurial and expansion loans to female business owners.
NerdWallet was just named “The best small business loans for women,” and Fund box Very proud to be on this list.
Small Business Administration Don’t send it out directly Commercial loans, but cooperate with cooperative lenders to guarantee loans. The SBA loan program includes:
- 7(a) Loan: This is SBA’s most common loan program, the maximum loan amount is 5 million U.S. dollars.
- 504 loan: The 504 loan can be obtained through a Certified Development Company (CDC), which is a community partner of the SBA. The CDC/504 loan program provides long-term fixed-rate financing of up to $5 million. To qualify for a 504 loan, your business must:
- Operate as a for-profit company in the U.S. or its territories
- Possess tangible net assets of less than US$15 million
- The average net income after federal income tax for the two years before the application is less than $5 million
- Microloans: These are small business loans less than $50,000. Each lender sets its own loan and credit requirements for small loans, usually, Some type of collateral and a personal guarantee from the business owner are required.
Unlike small business loans for women, grants do not need to be repaid, which makes it an excellent way for female business owners to obtain funding. However, the competition for funding is fierce.
When you apply for one Women’s grant, Please do your due diligence. Check the eligibility requirements carefully and make sure to submit your application on time.
Here are some grant programs for female business owners to study:
Amber funding: A $10,000 Amber grant from WomensNet is issued monthly. One of the 12 monthly winners also received an additional $25,000 Amber Grant.
Cartier Women’s Initiative Award: The global funding program selected 7 winners from 21 finalists. The winner will receive a grant of $100,000. The 14 runner-ups received a grant of US$30,000.
Halstead Grant: This is a grant to new jewelry designers who are mainly engaged in silver work. The winner will receive $7,500 in start-up capital and $1,000 in supplies.The award application deadline is August 1stYingshi, 2021.
Open Grassland Foundation: Foundation provided Provide grants of less than US$2,000 to projects with limited financial resourcesRedesigned and implemented by women and girls.
Researcher Tory Burch: Created by design Entrepreneur Tory Burch This program selects up to 50 researchers each year, each of whom will receive a $5,000 grant, visit a private online peer community, and travel to Tory Burch headquarters for five days of exchanges and seminars.
Many local grants for women are also provided, including:
- Grants from the Women’s Foundation of Central Ohio
- Boston Women’s Fund Grant
- Chicago Women’s Foundation
GrantsforWomen.org Provide a database of opportunities for women from all walks of life.many The grants provided here are for non-profit organizations; however, there are some for-profit businesses that are available.
Grants.gov It is the central clearing house for information on federal government funding.
Are there any tax incentives for women-owned businesses?
As you can see from the information above, there are many plans to make women worthy of women in business, but tax incentives are not one of them. Basically, neither the federal nor state governments have given any special consideration to tax laws.
Resources for Women Entrepreneurs
Another benefit of having a female-owned business is the support and help you can get.Female business owners are often very cooperative, so don’t hesitate to ask others Female business owners seeking advice.
You can also get from your Local Small Business Development Center (SBDC), Score Office, Women’s Business Center, rise, The new learning platform from SBA, and SBA’s Women’s Enterprise Ownership Office, All these main goals are to help female business owners empower.