The CROSON decision and the demise of set-ASIDES: a national survey

Abstract

This research examines the policy response to City of Richmond v. J.A. Croson Company and explores the impact of the decision on minority business enterprises (MBEs) one year after the decision was handed down. This is done by focusing on dollars spent on MBEs and on how localities differ based on region and percent minority population. For most of the cities studied, dollars spent on minority business enterprises had not declined one year after Croson. Various means of securing spending such as the disparity study and race/gender neutral goal progams explain why such is the case. The need for further study is cited in order to determine the impact of multi-year contracts and to see if race and gender neutral goal programs are as effective as “set-asides” in targeting minority as well as non-minority small businesses.