Should Your Small Business Get Certified?

Obtaining small business certifications—such as Women-Owned, Service-Disabled Veteran-Owned or other small business certifications—can be a strategic move for service partners looking to increase their market share.

It’s helpful for contractors to understand the different small business certifications and their potential advantages as well as what certification can (and can’t) do for your business.

Types of Small Business Certifications

Small business certifications are available to assist small businesses. Here are three common certifications worth considering:

Service-Disabled Veteran-Owned Small Business (SDVOSB) Certification: This certification is designated for business owners who became disabled through serving in the military. The Vets First Verification Program through the U.S. Department of Veterans Affairs offers help confirming a business meets the eligibility requirements for this certification. A minimum of 5% of all federal contracting funds are set aside for SDVOSBs annually.

Women-Owned Small Business Certification (WOSB). This certification is designed to help women business owners be more competitive for certain government contracts. A minimum of 5% of all federal contracting funds are designated for WOSBs each year.

8(a) Business Development Program. This certification is designated for small business owners who are socially and economically disadvantaged. Small businesses owned by Alaska Native corporations, Community Development Corporations, Native American tribes and Native Hawaiian organizations are also eligible to participate.

The Benefits of Small Business Certifications

Certifying your small business can offer a variety of benefits, including:

• Reduced competition for contracts: Becoming certified means the pool of competition for some federal contracts is limited to certified businesses.
• Eligibility for set-asides: Certification can help ensure your business is eligible to compete for set-aside contracts that are designed to give small businesses a competitive edge.
• Increased access to resources: Certified businesses can take advantage of government resources designed to help them grow and sustain themselves, from business training, counseling and financial assistance to insurance and bonding. And partnering with large companies can provide tools, systems and processes that can help a small business improve their compliance, pricing and project management capabilities.
• Competitive distinction: Certification shows leadership and commitment to diversity, which can differentiate your business and make it more appealing to work with.
• Enhanced visibility: Small business certifications can improve your business’s visibility in the federal procurement database and make it easier for federal agencies to contact you for contract opportunities.
• Partnering opportunities: Allows smaller businesses to partner with larger certified organizations (like MCS) to secure contracts that each organization (small or large) might not be able to either secure/qualify for or fulfill on their own.
• Financial support. Certain certifications may make your business eligible for financial assistance, such as low-interest loans, grants or other benefits.
• Mentor-protégé programs. Offered through the Small Business Administration, this program enables small businesses to formalize their relationship with a large business to receive guidance, access shared resources and pursue joint ventures.

Truths about Small Business Certification

Is a small business certification right for your business? There are a few misconceptions around small business certifications. Here are the truths that are important to understand before taking steps to get certified.

Certification doesn’t require government experience. You don’t have to have an existing government contract to pursue small business certifications. In fact, the SBA aims to award 23% of prime government contracts to eligible small businesses and offers counseling and help to support them.

Certification isn’t a one-time thing. Small business certifications must be maintained, and recertification is required for some types of government programs, either on an annual basis or based on triggering events like a company merger or acquisition.

Certification doesn’t guarantee success. While getting certified can offer advantages, it doesn’t guarantee more work for your business on its own. But partnering with another certified organization like MCS can help increase your odds of success and help take your business to the next level.

Partnering with MCS: The Value of Certification

For businesses like MCS, partnering with certified small businesses can be a win-win. It enables larger organizations to compete for set-asides they might not be eligible for otherwise, while enabling a small business to compete for a higher-volume contract they might not be able to fulfill on their own.

Because obtaining small business certifications can be complicated, it can help to have support navigating the application. Third-party partners can help walk you through the application and help simplify the process.

Whether you’re working with a third-party expert or navigating the certification process on your own, pursuing small business certifications can be a smart investment in your future. Certifications can help you stand out in competitive markets, qualify for government contracts and build credibility with potential partners. As long as you understand the commitment involved and what certifications can and can’t do, you can be better positioned to grow your business and unlock new opportunities.

Come Work with MCS

At MCS, we take our partnerships seriously. We can help you reach your business goals by matching the right type of work in your service area to enable an efficient and effective response. Learn more about becoming a service partner and how working with us can help you grow your business.