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Woman Owned Small Business Joint Venture Stats

One of the less commonly known avenues a certified WOSB (Woman Owned Small Business) can take is to form a joint-venture agreement with another firm to better compete for federal contracts. The opportunities for WOSB firms using joint ventures are large, especially if the partner firm is certified in a different set-aside i.e., SDVOSB or HUBZone certified, providing the opportunity for the JV to bid on those contracts also. Below are the numbers for 2021 for WOSB Joint Ventures.

Type of WOSB

Number of JVs

Total Revenue

Average Revenue

EDWOSB (Economically Disadvantaged)

107

567,605,246

5,304,722

WOSB

68

161,451,687

2,374,290

Combined

175

729,056,933

4,166,039

 

The rules for revenue sharing for a WOSB joint venture are as follows.

Category

Maximum Amount non-WOSB firm can receive from the government

Service Contracts

50%

Product Contracts

50%

Construction Contracts

85%

Specialty Trade Contracts

75%

 

The average active WOSB/EDWOSB firm has $1.3MM per year in sales. Therefore, joining with another firm to form a joint venture can have significant sales implications for Woman Owned Small Businesses.  Joint ventures are a terrific way to build past performance and gain the ability to compete for larger contracts.