Economically Disadvantaged Women-Owned Small Business (EDWOSB)

An Economically Disadvantaged Women-Owned Small Business is a small business that is at least 51 percent owned and controlled by one or more women who are considered economically disadvantaged. This designation is part of the Women-Owned Small Business Federal Contracting Program and provides access to certain federal set-aside contracts.

What Is an Economically Disadvantaged Women-Owned Small Business?

An Economically Disadvantaged Women-Owned Small Business is a small business that is at least 51 percent owned and controlled by one or more women who are considered economically disadvantaged.

This designation is part of the Women-Owned Small Business Federal Contracting Program and provides access to certain federal set-aside contracts.

Key Characteristics

At least 51 percent owned by one or more women who are U.S. citizens

Women owners must control daily operations and long-term decisions

Owners must meet specific economic disadvantage thresholds

Business must qualify as small under SBA size standards

Certification required through the SBA

How It Works in Government Contracting

Agencies may issue set-aside solicitations restricted to Women-Owned Small Businesses or specifically to Economically Disadvantaged Women-Owned Small Businesses in eligible industries. To qualify, owners must meet economic thresholds related to personal net worth, adjusted gross income, and total asset value. Certification and eligibility are verified through the Small Business Administration.

Where it appears: The Economically Disadvantaged Women-Owned Small Business designation is used during the acquisition planning and source selection stages of federal procurement.

Who uses it: Contracting officers, small business specialists, and certified small businesses.

Why it matters: Federal agencies have statutory goals to award a percentage of contracting dollars to women-owned small businesses.

Regulatory Framework

The designation is governed by:

The Small Business Act

FAR Subpart 19.15, which addresses the Women-Owned Small Business Program

SBA regulations at 13 CFR Part 127

Periodic updates through the National Defense Authorization Act

These authorities establish eligibility standards, certification procedures, and compliance requirements.

Why It Matters for Contractors

Business implications: Access to federal set-aside contracts increases competitive opportunity.

Compliance impact: Businesses must maintain ownership, control, and economic eligibility to remain certified.

Strategic importance: Certification can strengthen teaming arrangements and subcontracting relationships.

Risk considerations: Misrepresentation of status can result in penalties, suspension, or debarment. Proper documentation and annual updates are essential to maintain eligibility.

Common Misconceptions About EDWOSB

All Women-Owned Small Businesses qualify as Economically Disadvantaged.

Economic disadvantage criteria must be met in addition to ownership requirements.

Certification guarantees contract awards.

It provides eligibility, not automatic selection.

Only prime contractors benefit.

Subcontracting opportunities also exist under this designation.

Frequently Asked Questions

Is an Economically Disadvantaged Women-Owned Small Business the same as a Women-Owned Small Business?

No. All Economically Disadvantaged Women-Owned Small Businesses are Women-Owned Small Businesses, but not all Women-Owned Small Businesses meet economic disadvantage requirements.

How do businesses become certified?

Certification is completed through the SBA's online certification system after registering in SAM.

Can ownership percentages change after certification?

Yes, but ownership must remain at least 51 percent qualifying women ownership to maintain eligibility.

Are there industry limitations for set-asides?

Yes. Set-asides are limited to industries where women-owned businesses are underrepresented or substantially underrepresented.