The Importance of Socio-economic Small Business Certifications

Socio-economic Registration

There has been a rise in the popularity of minority businesses. Most recently, using the title of ‘Black Owned’ or ‘Minority-Owned’ has given companies a boost in profits that they would not have experienced if they have not embraced that identity. Being certified as a ‘Hispanic-owned’, ‘Disadvantaged’ or even “Veteran-owned” Business can open doors to industry benefits, special grants, and consumer pockets. The federal government alone awards more than $200 billion every year in government contracts, making it one of the largest, if not the largest, purchasers of goods and services in the country from small businesses.

There are numerous types of socio-economic certifications that a business can apply for. When a company is certified in a particular group, it creates a more even playing field when bidding for Government and Private Sector contracts. Instead of competing with bigger businesses, these business owners get a fair chance of excelling in their expertise area.

Because of the benefits of those business classifications, the federal government needs to have protocols to ensure that they are not misused. This is where the certification process comes in.

January 10, 2021
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