The benefits of obtaining a disadvantaged certification are significant to small businesses that are interested in engaging in business-to-business (B2B) and business-to-government (B2G) contract opportunities, which can range from a few thousand dollars to millions.
Federal and many local government authorities have programs in place that set aside a percentage of what they spend on contracts and supplier opportunities exclusively for certified disadvantaged businesses. Additionally, many private organizations maintain supplier diversity policies that provide access to contracts for businesses with a disadvantaged designation. The benefit to these public and private organizations is they have a qualified, well-vetted pool of small businesses competitively bidding for their contracts.
There are diverse certifications, as well as certifying agencies. The grid below sorts out details to help you determine which certification(s) is best for your business.