What Kind of Business Are You?

In the business of government bidding and contracting, it is not only important to understand the market you're trying to enter, it is equally imperative that you define the kind of business you operate, so you know exactly where you stand and how to represent yourself. This becomes especially important when the time comes for you to submit your contract proposals. 

Procurement laws in the United States mandate government agencies to seek the service of different kinds of small businesses for a particular percentage. The standard size for small businesses is defined by SBA here based on the North American Industry Classification System (NAICS). Visit the link and find out if you qualify as a small business or not.

Women-owned Businesses

Government agencies have to tap women-owned businesses for at least 5% of their purchases. Women-owned businesses are defined as "a business that is owned and controlled 51% or more by a woman or women." If your company falls under this category, then you won't have to go through a certification process yet. Simply self-certify by checking the appropriate box. 

Read more about women-owned businesses here.


Veteran-owned Businesses

Veteran-owned business follow the same definition as women-owned businesses. That is, they are businesses owned and controlled at least 51% by a veteran or veterans. Procurement laws don't require a certification process for this type of business as well. 


Service-disabled Veteran-owned Businesses

Businesses under this category are controlled 51% by one or more service-disabled veterans. The Veterans Administration has to confirm the disability first though. If you own this type of business, government agencies have to provide you with 3% of their procurement opportunities.

Read more about veteran-owned businesses here.

Small-disadvantaged Businesses

Defined as "a firm that is 51% or more owned, controlled and operated by a person(s) who is socially and economically disadvantaged," small-disadvantaged businesses are typically owned by African-Americans, Hispanic Americans, Asian Americans, Subcontinent Americans, and Native Americans. Government agencies are required to tap into these businesses for 5% of their purchases.

Read more about small-disadvantaged businesses here.

HUBZone Businesses

HUBZone stands for Historically Underutilized Businesses Zone, and businesses under this category are under SBA's HUBZone Program, which aims to promote economic development and employment growth in depressed areas by providing them with opportunities in government contracting.  If you think your company qualifies as a HUBZone business, you will need to be certified to enter into the bidding process specially tailored and restricted to HUBZone enterprises. Procurement policies demand government agencies to seek your product and services for 3% of their purchases.

Read more about HUBZone businesses and how to apply here.