Harnessing the Power of HUB Certification for Veteran Owned Businesses in Texas
In the vibrant business ecosystem of Texas, small and medium-sized businesses (SMBs) are always on the lookout for ways to stand out. One such strategy is through obtaining certification as a Historically Underutilized Business (HUB). This certification brings a multitude of benefits to eligible businesses.
Last year, Texas spent $978M on HUB certified companies. As great as that amount is, every contract over $100,000 requires a prime company to reach out to HUB companies offering them a chance to team/be a sub on the contract. But that’s not all, ever state agency has HUB coordinators whose job is to get more HUB certified companies doing business with their agency.n
Unpacking HUB Certification
HUB certification is a state-led initiative designed to foster equal business opportunities. It's specifically crafted to enhance procurement opportunities for minority and women-owned businesses, thereby promoting diversity and inclusivity in the business sector.
The Benefits of HUB Certification
Broadening Business Opportunities
HUB certification unlocks a wealth of business opportunities. Certified businesses are listed on the State Comptroller’s online HUB Directory, which is used by state agencies and private companies to identify eligible veteran, minority, and/or women-owned businesses for their procurement diversity programs.
Fulfilling State Requirements
For businesses aiming to meet state requirements for HUB spending, partnering with a HUB-certified business is an effective solution. This is particularly beneficial for state businesses, as they receive HUB credit for their expenditures in their semi-annual and annual HUB reports.
Supporting the Local Economy
Engaging a HUB-certified business ensures that you're contributing to the local economy. These businesses are often deeply rooted in their communities, and supporting them helps stimulate local economic growth.
Quality Assurance
All HUB businesses undergo a rigorous state certification process, providing assurance that you're working with a well-qualified contractor. The certification process ensures these businesses meet high standards of operation.
Free and Long-lasting Certification
HUB certification is free of charge and valid for four years, offering long-term benefits for businesses. Unlike some other certifications, businesses cannot buy their way into HUB certification, ensuring its integrity and value.
Promoting Diversity and Inclusion
The HUB program promotes full and equal opportunity for all businesses, fostering a diverse and inclusive business environment. This aligns with the growing emphasis on diversity and inclusion in the business world, making HUB certification an attractive proposition for businesses committed to these values.
Access to Government Projects
HUB certification allows businesses to bid on government projects, providing a steady stream of potential work. For instance, in San Antonio, where the housing industry is growing, the local government is expanding its resources of housing, and HUB certification allows businesses to bid on these projects.
The Stability of Government Contracts
Government contracts can offer long-term stability for businesses. These contracts often span multiple years, providing a reliable source of revenue. Moreover, government agencies are typically reliable payers, reducing the risk of late or missed payments.
Working with the government also brings a level of prestige, enhancing a business's reputation and potentially leading to more opportunities. Furthermore, government agencies often require a diverse supplier base, which can lead to increased opportunities for HUB-certified businesses.
While the HUB certification process is time-consuming and requires a good deal of paperwork, the advantages it brings is a worthwhile investment to grow your business. Alternatively, rather than you spending time figuring our how to navigate the government bureaucracy, the Squared Compass team are experts in getting businesses certified as Historically Underutilized Businesses in Texas. Reach out to our team to learn how we work to expedite getting your HUB certification.
From expanding business opportunities and supporting local economies to promoting diversity and inclusion and providing access to government contracts, HUB certification can be a powerful tool for business growth and stability.
