Small Business Certification – Why You Should Consider it for Your Growing Entrepreneurial Ventures
Starting a business is tough, but scaling it up can be even tougher. You need to be proactive and take advantage of every opportunity that comes your way. One such opportunity that can help grow your business is small business certification. In this article, we’ll discuss the benefits of small business certification and why you should consider it for your growing entrepreneurial ventures.
What is Small Business Certification?
Small business certification is a program that provides businesses with official recognition that they are owned and operated by individuals who fall into certain categories, such as minority, women, or veteran business owners. The certification process includes an in-depth review of a company’s ownership structure, management, and financial profiles to determine eligibility.
Benefits of Small Business Certification
1. Access to Government Contracts
One of the most significant benefits of small business certification is access to government contracts. The federal government has a goal of awarding 23% of its contracts to small businesses. By becoming certified, you’ll have access to these contracts that can be a steady source of revenue for your company.
2. Access to Loans and Capital
Certified small businesses may also have an easier time securing loans and capital. Many banks and financial institutions have programs and initiatives solely dedicated to lending to certified small businesses.
3. Competitive Advantage
Small business certification can provide a competitive advantage in the marketplace. In today’s world, businesses are focused on diversity, equity, and inclusion, and many companies prefer to work with certified small businesses.
4. Networking and Educational Opportunities
Certified small businesses are part of a community that provides networking and educational opportunities. You’ll have access to training programs, workshops, and events that can help you grow and develop your business.
Case Studies
Let’s take a look at two examples of the benefits of small business certification in action.
1. Toluca Lake Engineering
Toluca Lake Engineering is a certified small business that provides engineering services to the aerospace industry. After becoming certified, Toluca Lake Engineering was able to secure a $3.2 million contract with the Department of Defense. This contract helped the company grow and expand its capabilities, leading to even more contracts with the federal government.
2. Oki Sato Design
Oki Sato Design is a certified small business that specializes in architectural and design services. After becoming certified, Oki Sato Design was able to secure a $500,000 loan from a financial institution that was solely dedicated to lending to certified small businesses. This loan allowed the company to expand its operations and hire new employees.
Conclusion
Small business certification provides countless benefits, including access to government contracts, loans and capital, a competitive advantage, networking and educational opportunities, and more. By becoming certified, you’ll be able to grow your business and take advantage of opportunities that aren’t available to non-certified businesses. If you’re a small business owner looking to take your business to the next level, consider certification as a potential path to success.
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