Report: Governments Rarely Hire Minority-Owned Businesses When it Comes to Contract Work

Source: NPR

A federal study by the Minority Business Development Agency found that government bodies rarely invest in and hire minority-owned businesses when it comes to hiring for contract work.

There are more than 11 million minority owned businesses in the U.S., yet in many cases, contracts to minority businesses have fallen by as much as 24 percent, as local governments tend to hire white-owned businesses, according to the report.

“That’s $135 million less per year paid to minority entrepreneurs,” reports NPR.

In some communities across the US, initiatives have sprouted to help hire more minority contractors, especially in low-income neighborhoods, where leaders believe it would help instill a sense of pride and promote inclusiveness.

“Businesses that are owned by people of color hire people who look like them,” says Iola Harper, who heads up Philadelphia’s office of economic opportunity, as reported by NPR.

“That’s people that are going to be employed and that’s going to impact the poverty rate.”

Read Full Story: NPR

Justice & Poverty, News
Justice & Poverty, News