Fostering Minority Enterprise in Construction. Final Report




Glover, Robert W.

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Ray Marshall Center for the Study of Human Resources


An empirical study of minority business enterprise in construction, the paper is based on interviews with 340 general and specialty contractors (out of 1,275 identified minority contractors)in Atlanta, Houston, Chicago, and San Francisco-Oakland, as well as300 other individuals including civil rights officials, and other knowledgeable individuals. The study includes consideration of the characteristics of existing contractors and their firms, the aspirations of the contractors, an analysis of the problems they face in upgrading their businesses, and an examination of alternative approaches to improving and expanding minority business enterprise in construction. Among the strategies reviewed are demand stimulation through identifying minority firms in published lists and redirecting public and private procurement toward minority firms and supply development through bonding and financial assistance, technical and managerial assistance, and labor training. Also discussed are the potential and pitfalls of the minority contractor association and joint ventures between minority and non minority contractors. The general conclusion is reached that some minority contractors have significant potential for advancement which could be realized with the proper assistance. Specific conclusions and recommendations concerning the efforts to offer this assistance are stated. The concluding section lists interview subjects and bibliographic sources.


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