MBE, DBE, WBE, DVBE. Frankly, I’ve had a colleague explain the various certification acronyms to me several times, only to leave me with a headache and a list of "things to research" in my not-so-spare time.
The bottom line is that, as a woman-owned business, there is an opportunity to secure government contracts as well as large corporation contracts by obtaining your Woman Business Enterprise Certification.
With its roots in the mid-1970s, this certification arose from a concern that the rapidly growing woman-owned business sector was having difficulty gaining access to the more than $71 billion federal contracting market.
Through a concentrated federal outreach strategy, a central source of information about government contracting and a source of technical assistance to aid women business owners, the percent of contracts awarded to women-owned businesses is on the rise.
Consider that in 1988, women were awarded about 1% of the $168 billion prime contract dollars. In 1998, women were awarded about 2.21% of the $181 billion prime contract dollars.
Today, the percentage of the dollars spent by the federal government with woman-owned businesses is stronger than ever. In fact, most federal agencies have a procurement goal of 5% or more for women-owned businesses.
Many large corporations also are leading the way to improved supplier diversity programs including women-owned businesses. Among the many corporations listed on the Women’s Business Enterprise National Council (WBENC) Web site, you will find names like S. C. Johnson Wax, Inland Steel, Wisconsin Electric Power Co., Square D, and Wells Fargo.
To obtain your Woman Business Enterprise Certification, you must first meet the following criteria:
— 51% of the company must be owned by a woman or women.
— You must show proof of "effective management" of the corporation by a woman (or women). Operating position, by-laws, hire-fire and other decision-making roles will be examined.
— You must show evidence of control of the business by a woman (or women). This evidence may include signatures on legal documents.
— You must be a US citizen or hold US resident alien status.
Next, you will need to contact a certification program organization in your area.
If your target market is focused on the state of Wisconsin or Wisconsin corporations, you can contact the Business Educational Consortium in Milwaukee.
If your target market is regional, national or international, contact the Women’s Business Enterprise National Council in Washington, D.C.
Other certifications can put you on the path toward securing government or large corporation contracts, as well.
The Disadvantaged Business Enterprise (DBE) certification is held by businesses that are 51% owned by one or more socially and economically disadvantaged individuals and are managed and controlled by one or more of the socially disadvantaged individuals who own it.
In Wisconsin, certification programs are offered by the Milwaukee County Certification Program, the Wisconsin Department of Transportation, the Business Educational Consortium, Inc., and the City of Milwaukee.
Certification as a Minority Business Enterprise (MBE) can be obtained by companies that are 51% owned and managed by one or more individuals who are US citizens and members of a major ethnic minority group. Certification for that program in Wisconsin can be obtained through the Wisconsin Department of Commerce Bureau of Minority Business Development, the Wisconsin Department of Transportation, the Small Business Administration Section 8 (a) Program, the Wisconsin Supplier Development Council and the Business Educational Consortium Inc.
Are certifications an important part of the growth strategy for your business? Only you can determine whether obtaining a contract (prime or sub) with the government or larger corporations will benefit your business.
For the vast majority of woman-owned businesses that are interested, it doesn’t come easy. There will be large amounts of time spent navigating through paperwork.
Only then, when you have completed the application process and obtained your certification, can you realize the fruits of your labor in the elite club of "set aside contract" bidding.
KeleMarie Lyons is the founder of Pinnacle XL, a Milwaukee-based management consulting company that also has an office in Chicago.
Oct. 11, 2002 Small Business Times, Milwaukee
