Best Business Certifications for Businesses and Individuals

Imagine you’re trying to hire a software developer for your ecommerce website. Two vendors give you similarly priced quotes, but one vendor is a Certified Business Analysis Professional (CBAP) and the other is not. That certification might be the tiebreaker between two otherwise similar options.

Similarly, organizational-level certifications that highlight your background and expertise, or individual certifications for yourself and your employees, can help distinguish you from competitors and boost your company’s profile. Read on to learn more about the types and benefits of business certifications, as well as a list of public and private certifications you can consider pursuing to improve your business prospects.

What are business certifications?

Business certifications are professional credentials awarded by a third-party organization, such as a government entity or trade association.

Some business certifications are awarded to individuals. They attest to a person’s knowledge, skills, and expertise in a specific business discipline. Unlike academic degrees, these business certifications typically focus on a targeted body of knowledge that directly ties to a specific industry (like freight shipping or software development) or job (human resources, project management). Entrepreneurs and professionals often leverage these certifications to demonstrate competence, adherence to industry standards, and build credibility.

Business certifications can also be awarded to organizations. These can help you win federal, state, or local government contracting dollars or attract private sector business.

What are the benefits of business certifications?

Here are some of the ways you can benefit from a business certification, on both an individual and an organizational level.

Benefits of organizational business certifications

Businesses can benefit from obtaining organization-level certifications in numerous ways:

• Contract eligibility. The US federal government sets aside a certain portion of its contract dollars for businesses owned by people from specific groups or disadvantaged backgrounds. To access this slice of government contracts, companies must be certified.
• Grant eligibility. Some government organizations and private foundations offer special grants to businesses owned by people from specific groups or backgrounds. Gaining a certification like a Women-Owned Small Business Certification or a Minority Business Enterprise Certification might unlock your eligibility for these grants.
• Consumer favor. Some consumers favor businesses that certify that they conduct business in a certain way. For example, environmentally and socially conscious consumers might prefer to buy from businesses that are certified as B corps.

Benefits of individual business certifications

It requires both time and money to complete a business certification program, but there’s a payoff at the end.

• Improved credibility. A certification from an industry-recognized organization provides independent, third-party validation of your skills, experience level, and expertise. This helps build trust with potential clients, partners, and investors across a wide range of industries, especially if your business is relatively new. In crowded markets, this might be what sets you apart from your competitors.
• Project funding. A startup founder or business owner’s qualifications—including certification—can help build confidence among investors, and may increase an entrepreneur’s access to capital.
• Professional network expansion. Many certifications are overseen by professional associations that host conferences, workshops, and networking events. These gatherings are an opportunity to connect with other certified professionals, potential clients, and leading figures within your industry. As you build up your network, you may find new pathways to contracts and partnerships.
• Being up to date on industry trends. Business certification programs are regularly updated to reflect the latest industry developments, tools, and best practices. If you’re interested in staying up to date in your industry, it makes sense to keep your certifications active and reap the knowledge that you acquire in certification courses.

Top organizational-level business certifications

You can help your organization access funding or win new contracts by obtaining specific certifications. The two broadest categories of these certifications are those linked to federal contracting and those linked to the private sector. Here’s a look at each category.

Federal contracting certifications

These are certifications that help certain types of businesses win federal contracts. While a certification alone won’t guarantee that you’ll be hired, it can give your business access to a slice of contracting dollars set aside for certain types of businesses.

• Women-Owned Small Business certification (WOSB). The WOSB program is overseen by the Small Business Administration (SBA) and certifies that a business is either wholly owned or majority owned by a woman. The certification can play a role in federal contracting, as the SBA states: “The federal government’s goal is to award 5% of all prime and subcontracting dollars to women-owned small businesses each year.”
• 8(a) Business Development Program certification. Also administered by the SBA, this program helps small businesses owned by socially and economically disadvantaged individuals. The federal government limits competition for certain contracts to businesses that participate in the 8(a) program. As with the WOSB program, the government’s goal is to award at least 5% of all federal contracting dollars to small disadvantaged businesses annually.
• Service-Disabled Veteran-Owned Small Business program. The SDVOSB program provides procurement assistance to small businesses owned by service-disabled veterans. The federal government’s goal is to award 3% of all prime and subcontracting dollars to SDVOSBs.
• HUBZone program. This program helps small businesses in historically underutilized business zones (HUBZones) gain preferential access to federal procurement opportunities. The government’s goal is to award at least 3% of all federal contract dollars to HUBZone-certified businesses.

These certifications can also help businesses access government grants, like grants for women in business and business grants for veterans.

Private sector certifications

These certifications are conferred by private sector entities.

• Minority Business Enterprise (MBE) Certification. An MBE certification confirms that a business is at least 51% owned and operated by a minority group member. This certification helps connect minority business enterprises with large corporations and government agencies looking to diversify their supplier base. The MBE certification is primarily awarded by a nonprofit called the National Minority Supplier Development Council (NMSDC), as well as its regional affiliates. 
• Women’s Business Enterprise (WBE) certification. A WBE certification is granted to a business that is at least 51% owned, controlled, and managed by one or more women. This certification provides access to a network of corporate and government buyers committed to supplier diversity. It’s primarily overseen by the Women’s Business Enterprise National Council (WBENC), which is the largest third-party certifier of women-owned businesses in the US.
• LGBT Business Enterprise (LGBTBE) certification. The LGBTBE certification, offered by the National LGBT Chamber of Commerce (NGLCC), validates that a business is at least 51% owned, operated, managed, and controlled by an LGBT person. This certification helps LGBT-owned businesses gain visibility and access to supplier diversity programs.
• B Corp. A B corporation is a for-profit corporation that meets “the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.” Awarded by B Lab Global, this certification signifies that a company strikes a balance between pursuing profits and social stewardship.

Top business certifications for individuals

• Certified Associate in Project Management (CAPM)
• Project Management Professional (PMP)
• Certified Business Analysis Professional (CBAP)
• Professional in Human Resources (PHR)
• Certified Supply Chain Professional (CSCP)
• Life Cycle Assessment Certified Professional (LCACP)

Corporate professionals may use these certifications to get a leg up in their careers. But they can provide similar value to independent consultants and entrepreneurs launching professional service businesses. In most cases, the certification process involves training courses followed by a certification exam. Here are several certifications that carry weight in the business world:

Certified Associate in Project Management (CAPM)

The CAPM certification is offered by the Project Management Institute (PMI). It signifies a professional’s understanding of the fundamental knowledge, terminology, and processes of project management as defined by the PMI. This can be a valuable certification for an entrepreneur starting a website, software, or app development business, or a freelance project manager who contracts with tech companies.

The CAPM exam, designed by PMI members, is a required part of the project management education course. Upon completion, you receive a CAPM certification, which conveys your ability to plan, execute, and deliver projects on time and within budget.

Project Management Professional (PMP)

Another offering from the PMI, the PMP certification validates a professional’s leadership abilities, and is generally regarded as a step up from the CAPM, which is designed for those just beginning their journeys as project managers. The PMP is for professionals, consultants, or entrepreneurs—particularly those in the information technology space—who want to master project management and lead complex business initiatives, and the certificate showcases a high level of expertise to potential partners, investors, or clients. To use an analogy for the two certifications, think of the CAPM as a high school diploma and the PMP as a bachelor’s degree.

Certified Business Analysis Professional (CBAP)

If you’re thinking of starting an independent consulting venture, this globally recognized certification may be for you. Offered by the International Institute of Business Analysis (IIBA), the CBAP is among the premier certifications for business analysis planning. It signifies your ability to identify market opportunities, translate customer needs into product requirements, and streamline business processes for maximum efficiency. It may carry particular weight with IIBA members who understand the value of business agility and change management.

To get this certification, applicants must have completed at least 7,500 hours of business analysis work in the last decade, as well as a minimum of 35 hours of professional development. They also need to pass the CBAP exam, which consists of 120 questions.

Professional in Human Resources (PHR)

HR consultants may win more customers with a PHR certification, which is offered by the HR Certification Institute (HRCI). A PHR demonstrates expertise in the technical and operational aspects of human resources management. This includes topics like hiring, employee relations, and labor laws. With a PHR certificate in hand, you can pitch yourself to businesses that need help navigating complex HR issues, ensuring legal compliance, and implementing best practices to build a strong team culture.

Certified Supply Chain Professional (CSCP)

The CSCP certification, offered by the Association for Supply Chain Management (ASCM), is awarded to those who complete a program centered around global supply chain design, risk management, and logistics. Having someone on your team with this certification can help qualify your business for supplier contracts, whether with the government or a private business. People who train for a CSCP certification can expect to gain skills in optimizing a supply chain, reducing costs, and speeding up delivery times.

Life Cycle Assessment Certified Professional (LCACP)

This is the premier credential for those with advanced expertise in Life Cycle Assessment (LCA), a methodology used to quantify the environmental impact of a product throughout its entire life cycle. It’s a valuable certification for sustainability consultants who want to help companies better understand the full life cycle of their products.

Topics covered in an LCACP course include life cycle inventory (LCI), which is the process of collecting data on all the inputs (e.g., energy, water, raw materials) and outputs (e.g., emissions, waste) of a product system throughout its life cycle. You’ll also learn how to create a life cycle impact assessment (LCIA), which evaluates the potential environmental impacts associated with LCI data, such as global warming potential (carbon footprint), acidification, and human toxicity as a result of exposure to hazardous substances.