Executive Summary

Participants from several organizations presented certification strategies and logistics. Certification is a marketing tool that can provide an edge in competing against larger, more established companies. Certification can be a time-consuming process, but it can also be very rewarding, resulting in new business and a robust network. It's important to have a long term vision in order to leverage the opportunities that certification offers. When considering certification options, know your target market, and focus your energy on certifications that your audience values.

Overall Themes

There are different types of certification and businesses must apply for each separately. While there may be some overlap of information required for each type of certification, the different agencies have different forms so you must fill each out separately.
Depending on your prospects, you would pursue different types of certification. For example, U.S. Small Business Administration (SBA) and the State Office of Minority and Women Business Assistance (SOMWBA) offers certification for government contracts, while Women's Business Enterprise National Council (WBENC) and New England Minority Supplier Diversity Council (NEMSDC) offer certification for doing business with corporations.
Certification is a marketing tool that can provide an edge in competing against larger, more established companies.
Consider certification as a long-term strategy. Take advantage of the programs offered by the certification agencies as well as the networking opportunities. You need to be persistent and proactive in cultivating relationships.
Know which companies you want to do business with and the decision makers in those organizations.
If you don't get a contract, find out why. Find out where the bid or submission fell short.

Panel Summary

The program was moderated by Martha Sloan Felch, SVP and Director at Sovereign Bank and part of the WBENC certification committee.

Tina Andrews, Executive Director of New England Minority Supplier Diversity Council, stated that her organization certifies minority businesses. Women who are not from ethnic minority groups are not eligible for these programs. For eligibility, you must have 51% ownership and control of your business and be a U.S. citizen. It takes 30-90 days to certify. Once you apply, the form gets sent to a certification committee, comprised of members who verify that you have a viable business and meet the criteria. Tina mentioned that there are 120 corporations participating in the program that are looking to work with minority owned businesses. The organization has 39 affiliates, and the national organization provides access to several databases. Their convention attracts 7,000 people. NEMSDC provides programs, such as mini trade fairs, golf outings and networking events. The organization also provides scholarships and has partnerships with Tufts and other schools. The Council provides technical assistance and partners with banks that offer Business Consortium Loan funds. Tina suggested that you "do your homework" -- know which companies you want to do business with and what they buy. She also suggested knowing who the decision maker is and who uses your product or services. She noted that supplier diversity professionals are important, but they aren't always the purchasers of products. The NEMSDC's Web site is www.nemsdc.org.

David Polatin, Lead Economic Development Specialist from the U.S. Small Business Administration (SBA), stated that they are a federal agency to help small companies grow their businesses. They provide three types of services: 1) loans, 2) technical assistance and 3) opportunities to do government contracting. One of their programs is the 8A program and another is HUB zone program.

8A is geared to socially and economically disadvantaged participants. Women are not included in that category unless they can show clear evidence of being discriminated against. It is a nine-year program and offers business the opportunity to participate in sole source contracts (with no companies bidding against you). To qualify, you must have been in business for two years and have a product or service that the federal government buys. The application is available online or in hardcopy and the process typically takes six months. David noted that once businesses land their first 8A contract, it usually snowballs and they start getting more business.

The HUB program, which stands for historically underutilized business zone, is an economic development program. If you have a small business that is located in HUB zones in certain parts of the state and 35% of your employees live there, you can get government contracts. Every program the government offers has to have a subcontracting plan, so you might also get subcontracting business from other companies that have government contracts. The bidding pool for HUB zone contracts is smaller. You can check on the SBA web site to see if your business is in a HUB zone. David also mentioned that you don't have to be certified to get SBA loans. Companies can get a loan with a Small Business Association guarantee. David mentioned PRO-Net (www.pro-net.sba.gov/), and the Federal Biz Opps (www.sbaonline.sba.gov/businessop/) for federal contract opportunities. The SBA's web site is www.sba.gov.

Davida Craig Celestin, Senior Director, Business Advocacy and Assistance from the State Office of Minority and Women Business Assistance (SOMWBA), discussed how this state agency certifies women and minorities, and provides resource and referral services and business assistance. There are two types of programs for minorities and women: one offering contracts with the state for qualified for-profit businesses and nonprofit organizations, and another offering federal aid transportation projects for disadvantaged business enterprises under the Mass. Unified Certification program.

The certification and training is free to all. They ask that interested applicants attend pre-certification workshops across the state, which present information on the application and process. Their Web site (below) has info on the workshops. While you can take workshops online, Davida recommends attending live workshops because you have a better chance of having all questions specific to your business answered. After you apply for certification, the organization performs site visits and writes a report based on their visits. In 2003, the state spent $373 million with women and minority businesses through SOMWBA. Davida suggests that you look at your client base to determine which certifications they recognize and value. She noted that certification is a marketing tool, which gives businesses an edge in competing with larger, more established companies – it's not a guarantee that you'll get more business. She suggested that small businesses look at SOMWBA's directory of certified businesses and find out about potential opportunities and about the competition in your industry. Davida suggested looking at the Goods & Services Bulletin and Central Register to locate opportunities in cities and towns. She also suggested that business owners consider carefully the certifications they pursue – not every company likes or is necessarily suited to doing business with the government. It doesn't hurt to try bidding on a few contracts first, to see whether the process works for you. Davida suggested checking out the free online business opportunities listed on Comm-PASS, www.Comm-PASS.com . The SOMWBA Web site is www.somwba.us.org.

Mary Pat Hinckley, Director of Fast Growth Programs at the Center for Women & Enterprise (CWE), stated that CWE is the New England affiliate for the Women's Business Enterprise National Council (WBENC). They provide services for companies owned, operated and managed by women. Certification takes 60-90 days and costs $350. Companies need to be recertified every year. To initiate certification, go to WBENC's Web site (below) and fill out a form. The certification committee will review your application and conduct a site visit. Certification offers the following benefits:

- inclusion in a database searched by corporations committed to supplier diversity programs

- programs you can attend that are geared to growing your business

- sales forums that give you an opportunity to meet corporate supplier diversity managers.

Mary Pat suggested that you use certification as a sales and marketing tool. The key is to focus on building relationships with corporations. The WBENC Web site is www.wbenc.org; CWE is www.cweonline.org.

Q&As and Comments

What programs are available to legal residents who are not citizens? SOMWBA and WBENC are applicable for US citizens and legal residents. SBA and NEMSCD are available only for US Citizens.

What is the minimum amount of revenue a company should have for it to be worthwhile to certify?
The panelists agreed that certification would be valuable for companies of any size. However, there may be minimum requirements for the length of time a company has been in business – for example, NEMSDC requires that a company is in business at least 6 months before being certified.

Does it matter how the company is structured, e.g., as a sole proprietor or corporations?
The panelists stated it did not matter.

Can you use the packet of information you prepare for one agency for another? No. Businesses must apply for each type of certification separately. While there may be some overlap of information required for each type of certification, the different agencies have different forms.
Can you find out what types of contracts were awarded? You can request information from the Freedom of Information Act, but be specific, because you will get the exact information you requested. Also, you can find the information through Comm-PASS, which lists online business opportunities with Massachusetts.
What should you do if your business isn't traditional and doesn't fit into a category that the government does business with ? One panelist mentioned that you should be creative. For example, a hairdresser may not seem an applicable business for the government, but government-funded nursing homes could have a need for that service for their residents. David mentioned that a company could move to a HUB zone and be applicable for sole source contracts.