If someone told you that by working with a certified women-owned business you could increase your company’s profitability by as much as 130% return on investment,[i] you would jump at the chance, right?
Just look at any procurement professional’s preferred list of suppliers and vendors, and you’ll see certified women-owned companies among their selection. So, what makes these strategic sourcing experts consider women-owned companies as optimal partners to deliver goods and services?
3 Benefits to Working with a Certified Women-Owned Business
Supporting supplier diversity is good for any organization and the economy. Here’s a few reasons to partner with a women-owned business:
1: Encourages Competitive Pricing and Services
As the expression goes, putting all your eggs in one basket is typically never a good thing. This is one reason why companies use strategic procurement teams to sift through and select different vendors for the best price and services offered. They see the value of working with women-owned, small-business, and other diverse suppliers – to help drive competitive pricing and services among different vendors.
Research conducted by the Hackett Group shows procurement organizations who work with a diverse supplier base had lower overall operating costs and spent 20% less on their buying operations.[ii]
Also, you may be pleasantly surprised to see how a women-owned business has the agility and innovation to be a powerful partner. Since women-owned businesses are typically smaller in size, they can easily respond to customer needs and make faster business decisions. You’ll see how valuable your women-owned partner can be to your organization!
2: Offers Tax Opportunities
Who doesn’t appreciate a tax break? The federal government offers tax incentives to businesses who work with women-owned companies. Also, companies that use women-owned businesses to supply services for projects funded with federal or state grants receive tax benefits. In 2017, the government awarded $25.4 billion in federal contracts to women-owned businesses.[iii] There are tax opportunities out there for your business!
3: Promotes Your Company
Your company’s mission motivates employees every day to make strides in offering the best products and solutions that have the greatest impact to customers. Take this energy and passion for building a better world by also supporting the goods and services of women-owned companies.
Many organizations actively participate in supplier diversity programs to encourage a diverse pool of vendors. They promote standards of excellence and support the economic growth of many local communities. Companies who work with diverse companies build stronger connections with other potential buyers and customers – opening the door to future business opportunities!
How to Identify a Women-Owned Business Partner
The Women’s Business Enterprise National Council (WBENC) is the largest certifier of women-owned businesses in the U.S. and is a leading advocate for the prestigious WBENC certification.[iv] It sets the certification standard for women-owned businesses (a business that is at least 51% percent owned, controlled, operated, and managed by a woman or women). This is the certification that you’ll want your vendor to have!
Partnership that Fuels Growth
If you are not among the thousands of corporate brands and government entities who are already partnering with a WBENC certificated company, it’s time to expand your vendor options. It could make for a lasting partnership with many benefits!
As a certified Women-owned Business (WBENC), recently celebrating 25 years of dedicated service, TTA is committed to providing cost-effective, tailored training solutions that align with our clients’ training objectives.
Learn how we can be a diverse supplier for your learning and development initiatives.