Small business certifications: Your questions, answered

If you are a diverse, differently abled, woman or veteran business owner, you may have heard that having a business certification can be a benefit for your business – think networking, funding opportunities and more. But can these certifications be the boost your small business needs? To learn more about small business certifications, and understand what option might be best for you, read on.

First things first: For a business to be considered eligible for a diverse supplier certification, the issuing third-party organization requires that businesses are at least 51% owned by one or more women, Black, indigenous, people of color, veterans, LGBTQ+ persons or persons with disabilities. These businesses are often referred to as SBEs (small business enterprises), MBEs (minority-owned business enterprises), WBE’s (womans business enterprises) or MWBE (minority and/or woman-owned business enterprises).  

How to get certified

Businesses can apply for certification through government agencies or third-party certifiers (TPCs). Each certifying organization offers different resources and access to different networks, so it’s important to do your research and learn which organization is a strategic fit for the needs of your growing business. Factors to consider include access to relevant retail buyers, training programs and/or retail education and networking events. That said, a single business can hold multiple certifications, and many businesses find benefit in holding more than one certification. One important note: Each type of diversity certification typically has its own set of eligibility standards, so as a rule, it’s best to research each issuing organization for full details about eligibility, benefits and the verification process. 

While the process can vary between organizations, the process typically takes between 60 and 90 days. In most cases, a diverse supplier certification application will include a questionnaire and require submission of relevant company and financial documents, like partnership agreements, tax documents, balance sheets and other financials. Finally, application fees vary across certification types – typically ranging between $350-$1,250 – and are often based on annual business revenue. (But don’t let the fees deter you, as some organizations offer refund incentives.) 

How small businesses can benefit from diverse supplier certification

Diverse supplier certifications – and the supporting programs or initiatives they offer – can be a huge benefit in boosting your business. Below, here are some tips to help you reap the full benefits of certification. 

• Network: Plug into your newly expanded network. Build direct relationships and speak to other members about how they have leveraged their certification(s). Plus, take advantage of the training and educational resources provided by individual certifying organizations and affiliate partner organizations, as these are often tailored to address challenges faced by entrepreneurs just like you. 
• Access to financing: Some certifications unlock access to exclusive loan, early payment and grant programs. There are also banks and other financing firms who have dedicated pools of capital available exclusively to certified diverse suppliers. Many of these programs also provide access to more affordable funding, as they often offer lower rates than other financing options. 
• Supplier diversity programs: Several enterprises have dedicated supplier diversity teams that offer exclusive benefits like mentorship and training programs. Oftentimes, these enterprises dedicate spending to certified diverse companies, and leverage certifying organization national conferences and databases to identify potential partners. 
• Industry connections: One of the most significant benefits of certification is the opportunity that association with the certifying organization can offer. Whether it be through conferences, expos or certifying organization-sponsored events, certification can be a great avenue through which to make valuable connections and meet like-minded industry professionals. 
• Packaging: Once certified, many companies update their packaging and collateral to include the certifying organization’s logo. This can be a great additional marketing tool to help promote your business and expand your company’s visibility. In an environment where customers are looking to vote with their dollar, leveraging a logo can be a great differentiator. 

If you are interested in unlocking a new superpower for your business through certification, below are some of the most common certifications and issuing organizations. 

• Disability:IN: Disability:IN is the leading nonprofit resource for business disability inclusion worldwide. They leverage their vast network to expand opportunities for disability-owned business enterprises and veteran-disability owned businesses.  
• National Gay & Lesbian Chamber of Commerce (NGLCC): The NGLCC is the largest advocacy organization dedicated to expanding economic opportunities and advancements for the LGBTQ+ community. As the exclusive certifying body for LGBTQ-owned businesses, they provide connections to other LGBTQ+ businesses, and offer tailored educational resources designed to support business growth.  
• National Minority Supplier Development Council (NMSDC): Founded in 1972, NMSDC provides connections between minority-owned businesses, corporations and the public sector, as well as capacity and capability-focused programs and other educational offerings. 
• The National Veteran Business Development Council (NVBDC): The National Veteran Business Development Council, founded in 2014, is the nation’s original third-party authority for certification of veteran-owned businesses of all sizes. In partnership with Inclusive Workplace and Supply Council of Canada (IWSCC) they provide access to a network of industry professionals and corporate partners, and offer educational programming designed to increase business acumen and procurement readiness for veterans across the U.S. and Canada.  
• National Veteran Owned Business Association (NaVOBA): The National Veteran-Owned Business Association is a nonprofit organization focused on facilitating corporate contracting opportunities for veteran-owned businesses in the supplier diversity and certification sector. NaVOBA maintains a network of partner organizations that provide services, education, training, and access to opportunities to help veteran entrepreneurs launch and grow their businesses. 
• Service Disabled Veteran Owned Small Business (SDVOSB) and Veteran Owned Small Business (VOSB): Both veteran and service-disabled veteran-owned small businesses can apply for certification through the Small Business Association. Certification provides access to SBA federal procurement resources, connection with commercial supply chains, local business community, surplus federal property for purchase, access to capital and other services. Certified service-disabled veteran-owned small businesses (SDVOSBs) also have the opportunity to compete for federal sole-source and set-aside contracts across the federal government. Certified service-disabled veteran owned small businesses (SDVOSBs) also have the opportunity to complete for federal sole-source and set-aside contracts across the federal government. Certified veteran-owned small businesses (VOSBs) can pursue sole-source and set-aside contracts at the Department of Veteran Affairs under the VA’s Vets First program.  
• Women’s Business Enterprise National Council (WBENC): Since its establishment in 1977, the Women’s Business Enterprise National Council (WBENC) has grown to be the largest third-party certifier of businesses owned, controlled, and operated by women in the United States. In partnership with WeConnect International, WBENC connects women-owned businesses across the globe to opportunities for growth through networking, access to capital and educational resources. 

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