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6 small business certifications that help you gain access to new opportunities

6 small business certifications that help you gain access to new opportunities

By Kim Mercado
Jul 1, 2022
7 min read

Standing out from the competition is essential for attracting new clients and growing your small business. One way you can set yourself apart is by getting certified.

Small business certifications give businesses credibility that non-certified companies don’t have and access to certain opportunities depending on your industry. 

In this article, we’ll look at some small business certifications worth getting, including who issues them, the companies that qualify and the requirements.

SBA certifications

The U.S. government spends more than $650 billion on products and services each year, making it the largest consumer in the world. And they set aside a certain amount of money to spend on products and services from businesses with specific certifications.

If you have one of the certifications listed below, you’ll get an opportunity to bid on contracts that other small businesses don’t have access to.

Women-owned small business certifications

The U.S. government awards 5%of its contracts to certified women-owned small businesses every year.

If you’re the owner or co-owner of a woman-owned business, you may qualify for one of two types of certifications:

  • Small Business Administration’s Women-Owned Small Business Certification (WOSB) or 
  • Economically Disadvantaged Women-Owned Small Business Certification (EDWOSB)

To qualify for both certifications, your business must be at least 51% owned, operated and managed by a woman, and a woman must hold the highest position in the organization.

To earn an EDWOSB designation, your business must also be owned by a woman or women who meet the following requirements:

  • Has a personal net worth of less than $750,000
  • Has a three-year average adjusted gross income (AGI) of less than $350,000
  • Has personal assets of less than $6 million

To remain certified, you must complete an attestation form every year. Every three years, an SBA representative or third party will conduct a more in-depth review of your business to make sure it still meets the certification requirements.

HUBZone program

The Historically Underutilized Business (HUB) Zone program targets small businesses in urban and rural areas with high unemployment rates and low household incomes.

HUBZone-certified small businesses get preferential access to certain contracts, plus a 10% price evaluation preference. So, if you bid up to 10% more than other qualified businesses, you can still win the contract.

To qualify for a HUBZone Program certification:

  • Your headquarters must be in a designated HUBZone
  • Your business must be at least 51% owned by U.S. citizens
  • At least 35% of your employees must live in a HUBZone

After receiving your certification, you must confirm that your business still meets the program requirements yearly. You must undergo a more extensive review of your business’s eligibility every three years.

8a Business Development Program

The 8a Business Development Program aims to assist people who have historically been at an economic disadvantage due to racial, ethnic and cultural biases.

If your small business is at least 51% owned and controlled by socially and economically disadvantaged people as defined by the SBA, you may be eligible for certification.

To qualify, you must:

  • Have a two-year adjusted gross income (AGI) of less than $200,000
  • Have a net worth under $250,000
  • Own less than $4 million in assets, excluding retirement accounts

Businesses that earn this designation may partner with other certified minority-owned businesses to bid on larger contracts they may not otherwise be able to complete.

Certification is good for nine years, and you don’t need to re-certify annually as you do for some of the other designations on this list.

Veteran-owned

If you’re one of the 21.2 million vets in the U.S. today, you may be eligible for contracts the federal government sets aside for veteran-owned businesses each year.

You may qualify for this certification if:

  • You sustained a service-related disability confirmed by the Department of Veteran Affairs or Department of Defense
  • You qualify as a small business owner under federal guidelines
  • You’ve been in business for at least three years
  • Your business is 51% or more owned and controlled by a veteran and U.S. citizen

Organizational small business certifications

Government certifications aren’t the only type that can help move your business forward. You can also obtain certifications through private organizations dedicated to supporting specific groups of people.

Minority Business Entity (MBE) Certification

The National Minority Supplier Development Council’s (NMSDC) mission is to level the playing field for minority-owned businesses by creating equal opportunities for wealth building and socioeconomic equality.

The NMSDC defines a minority as someone who is at least 25%:

  • Asian-Indian
  • Asian-Pacific
  • Black
  • Hispanic
  • Native American

When you get certified as a Minority Business Entity (MBE), you gain access to education, training, networking opportunities and contracts that aren’t accessible to the general public.

You must meet the following requirements to qualify for certification.

  • You must be a U.S. citizen
  • Your business must be at least 51% minority-owned, managed and operated
  • Your business must be physically located in the United States or one of its territories

LGBT-Owned Business Enterprise Certification 

Issued by the National LGBT Chamber of Commerce (NGLCC), businesses with the LGBT-Owned Business Enterprise Certification enjoy unique opportunities to grow their business.

The NGLCC connects certified businesses with professionals actively looking to work with LGBT-owned companies. The organization also provides workshops, mentorship and leadership training.

To qualify for certification, your business must be:

  • At least 51% owned, operated, managed and controlled by one or more LGBT person
  • Owned by a U.S. citizen
  • Located in the United States
  • Legally formed in the United States
  • Independent of non-LGBT business enterprises

Industry-specific certifications

Depending on your business type, you may need to obtain specific certifications before you begin working. For example, plumbers, electricians, HVAC operators and other skilled tradespeople must be certified to work legally in many states.

Other professionals, like auto mechanics and fitness instructors, don’t typically need a certification. But that doesn’t mean being ASE-certified or getting your NASM certification won’t help you attract more clients and grow your business.

Many industries offer voluntary certifications that might be worth checking out.

Local certifications

Many states, counties and cities offer certifications to qualifying small businesses. Depending on where you live, you may first need to receive certification from the SBA to secure a local certification. 

How NEXT helps small businesses thrive

Running a small business can be a 24/7 job. At NEXT, we give you 24/7 DIY access to manage your coverage on your schedule.

You can choose from general liability, workers’ compensation, professional liability, commercial auto, commercial property and tools and equipment coverage.

Complete our online application to see coverage options, get a quote, and purchase a policy. It takes less than 10 minutes. When we receive payment, you’ll get immediate access to your certificate of coverage.

Our licensed, U.S.-based insurance professionals are ready and waiting to help if you have questions during the process.

Get started with your free online quote today.

6 small business certifications that help you gain access to new opportunities

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About the author
Kim Mercado is a content editor at NEXT's blog, where she writes and edits posts for small business owners. She is an experienced marketing professional and loves helping entrepreneurs solve their business challenges. You can find Kim trying new recipes and cheering the 49ers.
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