As you may know, becoming a WBENC-certified business isn’t a walk in the park. To become officially certified, a business must submit all the relevant documents and go through an on-site review by a Regional Partner Organization. Still, the hassle is worth it, as the WBENC (Women’s Business Enterprise National Council) is the largest third-party certifier of businesses owned, operated, and controlled by women.
This also means that partnering with a WBENC-certified business can be a great move for your own company. Here are the 5 main benefits of working with WBE businesses.
1. Tax Incentives
The federal government has passed several laws that encourage the growth of minority-owned companies. Some of the biggest benefits include tax incentives to companies and individuals conducting business with companies owned by women. Additionally, projects funded with state or federal grants using a WBE as a supplier may include tax liabilities.
2. Business Reputation
Working with a WBENC-certified business shows your company’s willingness to work in diverse markets and support local communities. By supporting diversity, your business will in turn become more attractive to other corporations looking for second-tier sourcing suppliers. This is part of the reason why WBENC-certified companies are a fast-growing sector in our economy.
Many women-owned businesses try to stand out from the competition by looking for new avenues to innovate. This is often the first step in the creation of new products, services, and solutions. By comparison, some benefits that you can always expect from a WBE are fast turnarounds and a worry-free customer experience.
4. Increased Profits
A recent study by the Peterson Institute for International Economics shows that companies with more women leaders tend to be more profitable as well. According to the study, having 30% or more women in leadership positions adds 6% to a company’s net profit margin. The study analyzed the results from 21,980 publicly traded companies in 91 countries.
5. Shared Knowledge
Unlike some other organizations, the WBENC encourages open business relationships and cooperation between its members. This is evident in the fact that they provide a platform where businesses can share their production issues and solutions in a relaxed atmosphere. This usually leads to a better experience for the end consumer.
This is one of the many reasons why working with a WBENC certified business can open the door to other supplier opportunities. Research conducted by the Hackett Group shows that businesses that work with a diverse supplier base tend to have lower operating costs and spend 20% less on their buying operations.