Preferential procurement, a rejoinder
Article Abstract:
The financial success of minority-owned business enterprises (MBE) is not determined by the assets of the MBE. Such claim defeats the purpose of MBE, which is to expand the development and growth of MBEs in the highly competitive business community. Preferential procurement programs do not choose only MBE's with a stronger capital base, but also companies which come from financially deprived areas. However, the government gives priority to MBEs which can provide employment and support a working capital for public contracts.
Publication Name: Journal of Urban Affairs
Subject: Sociology and social work
ISSN: 0735-2166
Year: 1995
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Minority procurement policy design, a reply to Timothy Bates and Darrell Williams
Article Abstract:
The lack of compliance and monitoring and weak enforcement of fraud penalties have led to an increase in minority-owned business enterprises (MBE) acting as front businesses. Through MBE front businesses, white-owned business enterprises are able to procure preferential contracts from government, thereby increasing their working capital assistance and enhancing their opportunities for certification. However, MBE's gain nothing from the arrangement.
Publication Name: Journal of Urban Affairs
Subject: Sociology and social work
ISSN: 0735-2166
Year: 1995
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Preferential procurement programs and minority-owned businesses
Article Abstract:
The preferential procurement program was developed by the government to encourage the creation and expansion of minority-owned business enterprises (MBE). A study that aimed to examine the effect of penalties on the behavior minority vendors revealed a decline in profits and procurement activities. This suggests that fraud penalties inhibit the contracting and procurement relations between MBEs and government agencies and authorities.
Publication Name: Journal of Urban Affairs
Subject: Sociology and social work
ISSN: 0735-2166
Year: 1995
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