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• W142749691 abstract "During coming year, Americans will begin a serious debate over meaning and value of Among early signs: A proposed ballot initiative in California aims to amend state constitution to prohibit preferential treatment in public policy based on race, sex, ethnicity, or national origin. In Georgia, state legislature considers a bill to end preferences for women and minorities in landing county contracts. Senator and presidential hopeful Phil Gramm (R-TX) promises that, if elected, he will end major set-aside programs on his first day in office. President Clinton orders an intense, urgent review of all aspects of government affirmative-action policy. Veteran Democratic strategist Susan Estrich says that as far as action is concerned, now is truly time to move on to some other approach. The Supreme Court may oblige her. In agreeing to hear Adarand v. Pena, Court threatens to reform, restrict, or undo federal set-asides for minority-owned businesses. Policy Review asked several black businessmen to describe impact of race-based government contracting on entrepreneurship, and to offer their own insights into establishing successful businesses in an increasingly competitive market. Here are their stories: WARD CONNERLY Of all terms used to describe America, none is more descriptive (and it is my favorite) than the land of opportunity. Opportunity, chance to advance in life, is centerpiece of our value system. It is this concept that separates us from rest of world. For opportunity to have meaning, there must be entrepreneurs, people who are willing to take chances in order to succeed. True entrepreneurs are created not by government, but by God, and their natural talents are stimulated by marketplace. In recent years, our nation has begun to debate effects and consequences of affirmative action. Affirmative action comes in many forms; some are acceptable, even desirable, such as advertising availability of contract opportunities in minority communities, and adopting strong measures to ensure that racial and gender discrimination have no place in our society. Other forms of action, however, are very damaging to nation and to those whom such programs and practices are designed to benefit. One of most odious forms of action is concept of awarding contracts on basis of racial, ethnic, or gender preferences. There are many variations on this theme, but approach taken in California is fairly representative and instructive. Several years ago, California state legislature passed a law requiring every state agency to award 15 percent of all contracts to firms owned by minority business enterprises (MBEs), 5 percent to firms owned by women-owned business enterprises (WBEs), and 3 percent to firms owned by disabled veterans (DVBEs). Minorities are defined as socially and economically disadvantaged groups and include blacks, Hispanics, Asians, and Native Americans. What are effects of this policy? First, prospect of getting government contracts, as a result of belonging to a protected group, is sometimes a false inducement for people to go into business without being adequately prepared to be in business. They often are undercapitalized and lack business acumen to remain in business without government contracts. This is not itself a sin, but these businesses tend to become an extension of government agencies themselves. Consequently, agencies often create contract opportunities to sustain these businesses rather than acting to meet their needs or those of taxpayers. Second, costs and headaches associated with administering MBE and WBE programs are significant. A bureaucracy of MBE/WBE coordinators has been established in virtually every department of California's state government. …" @default.
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• W142749691 title "Pride and Prejudice: Black Business Leaders Ask: Is It Time to Set Quotas Aside?" @default.
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