Collaboration is an essential aspect of business, and your organization will undoubtedly work with countless other companies over the years. When deciding which companies to partner with, it's vital to consider each organization's advantages and disadvantages. This is where Women-Owned Businesses (WOBs) come into play. They offer unique benefits and can be valuable partners in increasing your organizations success. Below are some ways that partnering with WOBs can provide a competitive advantage for you:
Working with diverse companies and diverse leadership can open up many doors. For example, WOBs supply diversity, making them more attractive to companies with second-tier supplier diversity programs. Federal law also requires that a certain percentage of contract work is supplied by Minority-Owned Businesses (MBEs), so WOBs are more likely to get government contracts. Therefore, partnering with a WOB can pave the way for future state and federal contracts and help your organization need government diversity qualifications.
Better Cost Efficiency
Working with a WOB can also have substantial financial benefits for your company. Businesses owned by women benefit from diversity spending goals and tax incentives. This lowers their operating costs. Therefore, they are often able to offer more competitive pricing, saving your organization money. Partnering with a WOB may also increase profits, as several studies have shown that companies with more diversity are more profitable than less diverse ones.
WOBs offer another key advantage: creativity and fresh perspectives. Studies have shown that increases in corporate diversity lead to increases in innovation, as well as drive market growth. Having a variety of perspectives boosts innovation and collaborations. This results in new ideas and fresh angles on existing problems.
Shows Commitment to Diversity
Choosing to partner with a WOB publicly demonstrates your company's values by backing up your devotion to diversity. Working with a WOB conveys your company's interest in working in diverse markets. It also conveys your organization's goal of supporting women and signals your interest in supporting local communities' economic growth. These benefits can lead to increased brand recognition and loyalty. In a time when many consumers "vote with their dollars," they are more likely to support organizations that support women and act in other ethical ways.
Working with WOBs offers many unique opportunities. Not only is your company supporting local communities, but your organization also stands to benefit, as diversity is good for everyone. To be competitive, your company should consider how to best utilize the advantages that WOBs bring to the table.