Removing Barriers to Government Contracting for Entrepreneurs of Color

cover page of this reportRemoving Barriers to Participation in Local and State Government Procurement and Contracting for Entrepreneurs of Color

Urban Institute

First published May 2024

With state and local government procurement expending more than $1 trillion each year, removing barriers to contracting participation—especially for minority-owned business enterprises (MBEs)—could advance a more equitable and accessible contracting environment. For decades, many states and localities have implemented procurement policies and practices aiming to increase the participation of businesses owned by people of color. However, recent court cases may threaten equity-focused approaches as well as considerably alter the broader procurement landscape.

To explore state and local procurement practices, especially within the current legal landscape, our research team conducted more than three dozen interviews with leaders and staff in government procurement, including training and technical assistance providers, disparity study consultants, legal experts, government officials across a wide range of departments, advocates, researchers, small-business owners, and others.

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