Set-aside contracting in S.B.A.'S 8(a) program

Review of Black Political Economy

Volumn 28, Issue 3, 2001, Pages 59-71

  Ong, Paul M ^a  

^a NONE

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EID: 27144553252     PISSN: 00346446     EISSN: None     Source Type: Journal    
DOI: 10.1007/bf02717270     Document Type: Article

References (11)

1. The research for this article was supported by the Small Business Administration. An earlier version of this analysis was presented at the Allied Social Science Associations Annual Meetings, Boston, MA, January 9, 2000. I am indebted to Bill Sprigs, Gwendolyn Flowers and Elena Ong for their assistance. I along am responsible for all interpretations and any errors.
2. Ong, Paul, editor, Impacts of Affirmative Action: Policies and Consequences in California, AltaMira Press, 1999.
3. Boston, Thomas D. and Catherine L. Ross. The Inner City: Urban Poverty and Economic Development in the Next Century. New Brunswick, NJ.: Transaction Publishers, 1997;
4. Ong, Paul, "The Affirmative Action Divide," in Ong, Paul, editor, The State of Asian Pacific American: Transforming Race Relations. Los Angeles: LEAP and UCLA Asian American Studies Center, 2000, pages 313-361.
5. The 8(a) program is not strictly a minority program, but the eligibility criteria favors non-whites: "To qualify for the program, a small business must be owned and controlled by a socially and economically disadvantaged individual. Under the Small Business Act, certain presumed groups include African Americans, Hispanic Americans, Asian Pacific Americans, and Subcontinent Asian Americans. Other individuals can be admitted to the program if they show through a "preponderance of the evidence" that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream of American society. In order to meet the economic disadvantage test, all individuals must have a net worth of less than $250,000, excluding the value of the business and personnel residence."
6. Bates, Timothy and Darrell Williams. "Preferential Procurement Programs Do Not Necessarily Help Minority-Owned Businesses," Discussion Papers, CES 95-1, Economic Planning and Coordination, Center for Economic Studies, Bureau of the Census. Washington, DC, 1995.
7. Bates, Timothy. "Small Businesses Do Appear to Benefit From State/local Government Economic Development Assistance," Discussion Papers, CES 95-2, Economic Planning and Coordination, Center for Economic Studies, Bureau of the Census. Washington, DC, 1995.
8. U.S. Senate, Committee on Small Business. "Report of the Committee on Small Business. Survey of the Graduates of the Small Business Administration Section 8(a) Minority Business Development Program." May 12, 1987. S. Prt. 100-29. Washington, D.C.: U.S. Government Printing Office, 1987.
9. AASBEA. "Survey of 8(a) Firms in the International Market: Opening the Door to the Global Market." Washington, D.C.: African American Small Business Exporters Association, Inc., 1998.
10. U.S. Small Business Administration. "SACS/MEDCOR Database." Washington, D.C.: U.S. SBA, n.d.
11. Testing with firms based on sales for the approval year indicates that there is a selection bias. The estimate impact of 8(a) sales on survival using the larger sample is considerably higher than those reported for firms using the sample restricted those with reported sales for the subsequent year.