Women entrepreneurs have increased significantly in recent years and successfully run businesses in diverse fields. A certified business organization is at least 51% owned, operated, and controlled by a woman or woman. The number of certified women-owned businesses is increasing, with many innovative, skillful, and technologically savvy women entrepreneurs leading the way.
Apart from encouraging and recognizing the talent of new generation businesswomen, there are many women-owned business benefits that other businesses can avail themselves of by partnering with them. Thus, partnering with certified women-owned companies is not limited to gender justice but has immense financial benefits. The top 3 benefits have been discussed in detail here.
Innovation and Diversity
Researchers believe women entrepreneurs are more likely to hire people from diverse backgrounds. Diversity begets innovation and creativity. Hence, one of the principal advantages of women-owned businesses is innovation. Partnering with certified women-owned businesses improves creativity and helps in attracting more customers.
Women-owned companies are generally small and, therefore, more capable of implementing innovative strategies, faster turn-around, and making swifter course corrections. All these advantages help their business partners as well.
Partnering with certified women-owned businesses also diversifies the channels to access goods and services. A diverse supply chain naturally opens up more business opportunities for the business. Women-owned companies are connected more than other kinds of companies. By partnering with a certified women-owned business, companies get access to an extensive network of business professionals to fulfill many business needs.
High Return on Investment
Other woman-owned business advantages would not have appealed to non-women-owned businesses had there been no advantage regarding return on investment. Good returns are a significant consideration for any business to partner with another company. Investing in a business run jointly with a women-owned business is profitable.
As per research, partnering with a certified women-owned business can increase revenue by as much as 130%. This is a massive boost for the revenue base of any business enterprise. In addition, the research also concluded that partnering with a certified women-owned business can reduce the operating costs by 20% due to the diversity of the supplier base.
Saving tax also ranks as one of the most appealing female-owned business benefits. In the USA, the federal government provides tax incentives to companies partnering with certified women-owned businesses. In the case of projects funded by federal or state loans or grants, the tax liabilities are reduced if the supplier is a certified women-owned business. Some conditions can also provide tax incentives on partnering with a certified women-owned business.
Thus, companies can pay less taxes by working with certified women-owned businesses.
There’s no denying that women-owned businesses are here to stay. The number of female entrepreneurs is only expected to increase in the future, and partnering with such companies should be a reasonable proposition for anyone looking to grow their business.