Minority Business Contracting with Local Government

The trend in government contracting with minority-owned businesses in a racially and ethnically diverse community (Hillsborough County, Florida) is examined in this article. Using data from the county's Minority Business Enterprise program for FY 1987 and FY 1988, three hypotheses are tested and confirmed: (1) Getting contracts is related to the degree of economic and social assimilation of a racial or ethnic group; (2) getting contracts is related to the size of the minority population; and (3) getting contracts is related to the degree to which a minority group is incorporated into the political system. Through an analysis of the drop-out rate of the minority businesses participating in the program, a market explanation of this phenomenon is offered.