Motives for choosing women businesses
Why do corporations want to work with certified women-owned businesses?
Their motives appear to fall into three categories.
- Increased Market Share. Corporations recognize that women purchase up to 90% of their products. Involving WBEs gives them insight into their key buyers.
- Contract Requirements. Corporations encourage their suppliers to include WBEs as second-tier suppliers, or subcontractors. Many companies and government entities require WBE subcontractors for every contract over a specific amount, typically $50,000.
- Process and Product Improvement. Corporations believe that WBEs provide them with a competitive advantage as WBE vendors enhance process improvement and provide improved product design and ideas.
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