I founded a certified woman-owned, certified b-corp company with municipality and water utility clients.

The b-corp certification helped us quickly signal to our clients’ customers that were trusted because we cared enough to commit to and be accountable to the ESG principles that the certification requires.

The women-owned business certification helped us signal to our clients that we were a valuable asset to our clients’ diverse supplier programs and thus own ESG accountabilities to employees, customers, and shareholders.

However, if my company takes on more investment to scale in our mission and impact, we will have to leave behind the woman-owned certification. We lose a key part of our identity, brand, and differentiating value by doing the responsible thing and growing the business.

Let’s unpack this.

WBENC is the main certifying entity for women owned businesses nationally in the US. Their mission is to fuel economic growth globally by identifying, certifying, and facilitating the development of women-owned businesses. There are similar certifying entities for minority owned businesses, veteran owned businesses, LGBTQ+ businesses, and the list goes on. However, of those certifications, only one recognizes that companies need to give away ownership equity in exchange for funds to grow the business. And giving away ownership equity usually results in a female-founder having less than 50% ownership because the majority of investors are men. It’s simple math. So the certification is lost, and with it an identity, commitment, and often staff accountability to fostering a diverse workplace culture that comes with any DBE certification.

The uncomfortable truth with all diversity certifications and procurement diversity programs is that many are not structured to be truly inclusive and just. They are structured to provide diversity and equitable opportunities, but that is where they stop.

Progress looks like expanding the programs to support diverse businesses to grow without losing this part of their identity.

What if, instead, the certification was structured more like the b-corp certification, where the certification could grow with a business? If a woman owned business (or any diverse business enterprise) accepts equity investors to grow, instead of saying “see you later” to certifications and clients, instead the owner could be busy applying for the next step up of certifications. What if supplier diversity programs understood this flaw in the certification programs and took an expansive approach to their procurement policies?

I know I am not the first to think about this, but the topic is a sensitive one because it is most important in the midst of sensitive fundraising conversations or acquisitions.