A women-owned small business (WOSB) is defined as a small business that is at least 51 percent owned and controlled by one or more women who are U.S. citizens. This designation allows these businesses to participate in specific federal contracting opportunities aimed at promoting women entrepreneurs and enhancing their role in the economy.
The term "women-owned small business" is primarily used in federal contracting and procurement contexts. The Women-Owned Small Business Program, established under the Small Business Act, allows contracting officers to set aside contracts specifically for WOSBs. This legal framework supports agencies in meeting their goals for contracting with women-owned businesses, thus fostering economic growth and job creation.
Here are a couple of examples of abatement:
Example 1: A marketing agency owned by two women who each hold a 50 percent stake qualifies as a WOSB because they collectively own more than 51 percent of the business.
Example 2: A technology startup founded and operated by a woman who owns 100 percent of the company is also classified as a WOSB.
The primary statute governing women-owned small businesses is the Small Business Act, which includes provisions for the Women-Owned Small Business Program. This law enables federal agencies to set aside contracts for WOSBs to promote their participation in federal contracting.
| Term | Definition | Key Differences |
|---|---|---|
| Minority-Owned Business | A business that is at least 51 percent owned by individuals from minority groups. | Focuses on ownership by minorities, while WOSB specifically targets women. |
| Small Business | A business that meets the Small Business Administration's size standards. | WOSB is a subset of small businesses with specific ownership criteria. |
If you believe your business qualifies as a WOSB, consider registering with the Small Business Administration. This registration can enhance your visibility in federal contracting opportunities. Additionally, explore US Legal Forms for templates that can assist you in the application process. If your situation is complex, seeking professional legal advice may be beneficial.
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Being a WOSB allows businesses to compete for federal contracts set aside specifically for women-owned businesses, increasing opportunities for growth.