As a small business in today’s economy, you need to access every competitive  advantage possible. There are federal, state and local laws, regulations etc. and private sector goals to use vendors who fall into certain categories. If you fit within one of those categories, you should seek to use that status to get more business. Categories include: small business; disadvantaged small business, veteran owned business, minority owned business and woman owned business.  Increased access to business/contracts comes from multiple sources. On the federal, state and local government level, there are government laws and regulations requiring set asides, preferences or goals for giving a certain amount of business to these categories.  Large private corporations who contract directly with the government (prime contractors) are often required to have given a certain amount of business to subcontractors in these categories in order to obtain and retain the government contract.  In addition, on the private sector side, many large corporations have goals to use minority or women owned vendors because of their target market, corporate ethics, or their relations with other entities.

Certification in these categories can give you increased access to the business that is targeted to your category.

The first question- are you eligible. Generally, you need to be in business one year or more. You need to be owned and operated/managed 51% or more by one or more people in the category. For example, if you are going to WBE (women business enterprise) certification, a woman or women must own/manage more than 51% of the company. You also need to be a small business (based on number employees or sales according to SBA standards). And, most certifications require owners to be US Citizens. 

There are several certification types available to small businesses:

A Federal- self certification

1. Hubzone certification (Historically Underutilized Business Zones Program).Helps small businesses in urban/rural areas get preferential access to federal procurement opportunitiesMust be located in federally designated Hubzone; must beCertified. See www.sba.gov under hubzones
2. Small disadvantaged business 51% owned/controlled by one or more socially or  economically disadvantaged persons; small per SBA size standards- self certification; register  with SAM (System for Award Management) formerly Central Contractor Registration- see www.sba.gov
3. 8A certification Special program for socially & economically disadvantaged businesses; stricter requirements; separate application process See www.sba.gov; 8A questions@sba.gov

B NYS

1. General: www.esd.ny.gov/mwbe to be certified as minority or woman owned.
2. Specific agencies have their own certifications. So, if you deal for example with the Dormitory Authority of NYS, you may want to inquire whether they accept the general certification or require you complete their process.

C  Local

Many local government entities have a certification process for obtaining local contracts. For example, in Nassau and Suffolk Counties, you can register as a minority or woman owned business and receive the benefits when being considered for a county contract or, at least, be listed in their business directories. See local city, county, town rules.
 

D Private

Contracts with Fortune 500, 1000 companies. Many large entities such as Disney, Coca Cola, Kraft, etc. have goals to provide a certain amount of business to small, women owned or minority owned businesses. They do this because their target market may fall into one of those categories and they consider it good business. Or, they may feel it’s morally right. Or, they may have government contracts that require them to do this. Whatever the reason, you should get yourself certified if you plan to do business with these entities. Some companies have their own internal process. Many contract with national organizations to do the certification for them. For certification see the following: 

1. National Women Business Owners Corporatio See www.nwboc.org
2. Federal Minority Business Development Agency See www.mbda.gov; also see National Minority Supplier Development Council, www.nmsdc.org.

Getting additional business because of your special category may not be all roses and champagne.  There will still be competition- from experienced, larger certified companies. You need to have all your ducks in an order. Just fitting into the category does not necessarily make you capable of getting and performing on the contract. And, sometimes, there can be payment issues as a subcontractor. While there are laws and regulations to ease all of these burdens, it can still be daunting. But, if you clear the hurdles and are persistent, additional government and private sector business due to your special category can be a huge boon to your company.

What steps should you take? If you are a NYS business, start with the general NYS certification. It is accepted by many entities. Pursue other appropriate certifications for your type business: Federal- file with  SAM; Private certifications. The next step after getting certified is to look for contracts. For Government and other contracts- get assistance from a procurement technical assistance center. For a list of PTACs see: www.sba.gov or www.aptac-us.org. There are also local procurement assistance organizations: Suffolk Coalition of Women Business Enterprises; www.scwbec.org; Nassau County Office of Minority Affairs; www.nassaucountyny.gov. Also check with your industry trade associations for opportunities.

There’s no shame in using your special status to find more business for your business. It’s a great opportunity for those qualified.