Why government agencies want to contract with woman-owned, small businesses

Government contracting can seem like a world all its own. Agencies have strict requirements, mountains of paperwork, and very specific goals about who they want to buy from. One of those goals is to do business with woman-owned small businesses (WOSBs). Far from being a token gesture, these contracts make a real difference. Agencies get partners who bring agility, innovation, and fresh perspectives, while the businesses themselves help the government meet both mission-critical and diversity goals.

Here are some of the main reasons why government agencies so often choose to work with WOSBs:

Meeting Federal Contracting Goals

The federal government has a mandate to direct at least five percent of its contracting dollars each year to WOSBs. Agencies don’t just want to hit a number—they want to show progress toward building a more inclusive supplier base. By awarding contracts to WOSBs, they not only comply with the law but also demonstrate to their employees, stakeholders, and the public that diversity matters.

Bringing Innovation and Agility

Smaller, woman-owned firms often move faster than their larger competitors. They can adopt new technologies, pivot to meet emerging needs, and deliver custom solutions without layers of bureaucracy. For government agencies facing complex hiring challenges, that nimbleness is a big advantage.

Supporting Supplier Diversity

Supplier diversity has become an expectation in both the private and public sector. By contracting with WOSBs, agencies contribute to a stronger, more representative business ecosystem. That diversity of ownership translates into diversity of thought, and that’s exactly what agencies need to solve tough problems in talent acquisition and beyond.

Building Trust With Communities

Working with WOSBs isn’t just about compliance—it’s also about optics and credibility. Agencies that contract with woman-owned firms send a signal to employees and citizens alike that they value inclusive partnerships. That matters when the public is watching, especially in areas like healthcare, defense, and financial regulation.

An Example: College Recruiter

At College Recruiter, we’ve experienced this firsthand. Under the leadership of our CEO and majority owner, Faith Rothberg, we’ve been awarded hundreds of government contracts. These range from intelligence agencies and military branches to financial regulators and healthcare providers. Agencies turn to us because we help them recruit students and recent graduates efficiently, at scale, and with a focus on diversity. Our status as a woman-owned small business has opened doors, but our ability to deliver results is why agencies keep coming back.

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The Bigger Picture

The emphasis on WOSBs in government contracting isn’t going away—it’s growing. Agencies are under pressure to meet diversity goals while solving some of the toughest workforce challenges in history. By turning to WOSBs, they get partners who are not only certified but also capable, creative, and deeply committed.

If you’re wondering why agencies so often look for WOSBs, the answer is simple: they don’t just want vendors. They want partners who reflect the values they’re trying to promote, and who can deliver the outcomes their missions demand.