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How to Take Advantage of New Federal Contracting Rules for Women-Owned Businesses

 A decade in the making, the Small Business Administration finally put in place rules for its women-owned small business federal contract program. Here's how you can work it. 

 In February, the federal government unveiled new rules to promote women-owned small businesses. Contracts under the Women-Owned Small Business (WOSB) Federal Contract Program are to be awarded by the fourth quarter of 2011. This should help the government reach its 5 percent goal for contracting to women-owned businesses. (In 2010 only 3.4 percent of federal contracting dollars were awarded to female entrepreneurs.) 

 When compared to all privately held firms, women-owned businesses employ 13 percent of the workforce and account for 11 percent of all business revenue, according to the recent American Express OPEN State of Women-Owned Business Report.

 However, much more can be done to boost this group. Only 1.8% of women-owned businesses currently have revenue that exceeds $1 million.  American Express Open executive vice president Denise Pickett says government contracts are critical because they are one area of the economy that is on the rise.  

 “Government spending in many areas has either remained consistent or increased in a time when other prospects' spending has decreased,” she stated in May testimony to the House Small Business Committee.

 Until now, women have qualified for government contracting under the so-called 8(a) rule—section 8a of the Small Business Act of 1953—which was designed to ensure socially and economically disadvantaged U.S. citizens have the opportunity to compete on an equal basis in the American economy.  The WOSB, which women will qualify for in addition to 8(a) is expected to further increase federal contracting opportunities for women once contracts begin to be awarded later this year.

The new rule will help some women-owned businesses get an edge. Here’s how you can position yourself to benefit from it:

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