Women-Owned Small Business (WOSB)

A Women-Owned Small Business (WOSB) is a small business at least 51% unconditionally and directly owned and controlled by one or more women who are U.S. citizens, certified by the Small Business Administration. WOSB-certified firms are eligible for federal set-aside competitions in NAICS codes where women-owned businesses are deemed underrepresented, supporting the government's 5% statutory prime contracting goal for WOSBs.

What is a WOSB?

The Women-Owned Small Business Federal Contract Program was established under the Small Business Act and implemented at FAR Subpart 19.15. The SBA maintains a list of NAICS codes in which WOSBs are underrepresented or substantially underrepresented in federal contracting. Set-asides for WOSBs are only permissible in those designated NAICS codes, unlike total small business set-asides that apply across all NAICS codes.

For a firm to qualify as a WOSB, women must own at least 51% of the business, control it, and manage its day-to-day operations. The managing woman must hold the highest officer position in the company. SBA certification is required; the previous self-certification option was eliminated in 2020. A subcategory, Economically Disadvantaged Women-Owned Small Business (EDWOSB), applies additional financial thresholds similar to those used in the 8(a) program.

In USAspending, WOSB set-aside awards carry the type-of-set-aside codes "WOSB" (competitive) and "WOSBS" (sole source). The government holds a 5% annual prime contracting goal for WOSBs. Tracking which agencies are below their WOSB goals, available through USAspending.gov filters, identifies buyers with the strongest motivation to seek certified WOSB contractors.

Why WOSB Matters for Government Contractors

WOSB certification opens a dedicated tier of set-aside solicitations with a narrower competitive field than full and open competitions. Because set-asides are limited to specific NAICS codes, firms should verify their primary NAICS codes appear on the SBA's WOSB-eligible list before relying on the certification as a core competitive strategy. The government contracts for women-owned businesses market has grown substantially as agencies work toward the 5% goal, creating consistent pipeline opportunities.

Example

A marketing and communications firm owned 70% by two women partners receives SBA WOSB certification. NAICS code 541810 (Advertising Agencies) appears on the SBA's underrepresentation list. The firm wins a $1.7M WOSB set-aside contract with a federal health agency for public awareness campaign development. Only WOSB-certified firms could compete, reducing the field to four competitors.

Frequently Asked Questions

Which NAICS codes are eligible for WOSB set-asides?

The SBA publishes a list of NAICS codes designated as having WOSBs underrepresented or substantially underrepresented in federal contracting. Set-asides limited to WOSBs are only permitted in those NAICS codes. Set-asides limited to EDWOSBs apply to the subset designated as substantially underrepresented. Always verify the SBA's current list, as it is updated periodically.

What is the difference between WOSB and EDWOSB?

Both require women to own 51% and control the business, but EDWOSB adds economic disadvantage requirements similar to the 8(a) program: each woman owner's adjusted gross income averaged over three years must not exceed $400,000, personal net worth must not exceed $750,000 (excluding equity in the primary residence and business), and total assets must not exceed $6M. EDWOSBs are eligible for set-asides in NAICS codes designated as "substantially underrepresented," which is a narrower list than the WOSB-eligible list.

Is self-certification still allowed for WOSB?

No. The SBA eliminated the self-certification option effective October 15, 2020. All firms claiming WOSB or EDWOSB status must hold active SBA certification. Contracting officers are required to verify certification status through the SBA certification database before making award. Misrepresentation of WOSB status can result in suspension, debarment, and criminal penalties.

Can a WOSB-certified firm also pursue 8(a) set-asides?

Yes, provided the firm's principals independently meet the 8(a) program's social and economic disadvantage standards. Women who are minorities may qualify for both WOSB and 8(a) certification. Holding both certifications expands bid-eligible solicitation volume significantly and makes the firm attractive to primes seeking multiple socioeconomic subcontractor designations. The SBA's All Small Mentor-Protege Program is also available to WOSB-certified firms.