The Importance of Becoming a Certified Women-Owned Business

Key Takeaways

• Third-party certification provides opportunities that are not otherwise available.
• Supplier diversity programs help women-owned businesses gain access to opportunity.
• Take advantage of networking groups to continue to learn and grow.

Supplier Diversity Programs

Traditionally, women- and minority-owned businesses have had a much smaller share of supplier contracts for many reasons, including the lack of women- and minority-owned companies. The Federal government is working to help level the playing field for business owners by committing 5% of federal contracts to women-owned small businesses.¹ Additionally, many businesses, including KeyBank, recognize the disparity and have created supplier diversity programs to ensure that diverse suppliers have opportunities to compete for contracts.

KeyBank’s Supplier Diversity program has long-focused on being both intentional and inclusive regarding all products and services offered by the enterprise. In fact, since 2001, KeyBank has awarded more than $1 billion to diverse suppliers.² Across the company, Key’s Supplier Diversity Champions help drive positive outcomes for diverse suppliers for their Lines of Business. Key continues to deliver robust reporting and metrics to increase spend visibility, help departments identify opportunities, and drive accountability across the organization.

“At Key, one of our guiding principles is to reflect the diversity of our communities in our supply chain. The Procurement Team partners closely with Key’s Diversity, Equity, and Inclusion Team, organizations focused on supplier diversity and economic inclusion, and peer banks to engage with diverse suppliers for both new and existing products and services,” Jason explained.

KeyBank is not alone in its commitment. Many major corporations—including AT&T^®, Johnson & Johnson^®, Marriott International, and CVS^® — have supplier diversity goals as part of their procurement efforts.³ With all of the opportunities available, certification is the most important step a business can pursue in order to take advantage of these initiatives.

Women-Owned Business Certification

Many supplier diversity programs require any participating business to be certified by a third-party to pass the first step toward eligibility. The certification process is not a complicated one but includes providing proof that the business is 51% owned, controlled, operated, and managed by a women or women.

According to Key’s Supplier Diversity Team, “When a company is certified, we know that it has undergone a stringent process and that it meets the criteria.” Completing the certification process enables a business owner to move more quickly toward admission into any supplier diversity program.

The Women’s Business Enterprise National Council is one of the organizations that offer certification. To become certified, “The first step is to go to the WBENC website, then click on the Certification link. Our website allows a business owner to review the criteria and benefits to help the individual determine if certification is a fit. Once all necessary documents are uploaded, we have outreach managers who will help each business owner through the certification process,” Sheila explained.

Benefits of Networking

Gabrielle’s experience is a testament to the benefits of becoming involved in networking groups such as WBENC. “My business grew by more than 44% the year following my attendance at a WBENC seminar. I applied my learnings about marketing strategies, financial management and other business skills, then quickly saw business growth.”

Organizations such as WBENC provide opportunities such as monthly networking events as well as regional and national conferences where meeting with like-minded people can provide the information you need to grow your business.

Steps to Consider

• Take a step back from your business to think about how it works. Seeing opportunities is sometimes difficult when you are neck-deep in the daily processes.
• Make time for networking. Your time is valuable, but taking time to learn something new can help your business grow in different ways.
• Certify your business, then continue being involved in organizations that can help you long-term.