How Do Large Purchasing Organizations Treat Their Diverse Suppliers? Minority Business Enterprise CEOs’ Perception of Corporate Commitment to Supplier Diversity

Supplier diversity programs were created in the United States nearly 50 years ago to encourage private sector companies to provide business opportunities to underutilized minority business enterprises. In order to assess the experiences that minority business enterprise CEOs have with large purchasing organizations and their perceptions of justice and commitment of large purchasing organizations to the buyer–supplier relationship (BSR), this study utilizes survey data collected from 206 minority business enterprise CEOs who supply large purchasing organizations that espouse a strong commitment to supplier diversity. The theoretical framework of organizational justice is utilized to establish testable hypotheses. The results from hierarchical linear regression show minority business enterprise CEOs’ perception of large purchasing organizations’ commitment to the BSR is positively related to the distributive and informational dimensions of organizational justice. Surprisingly, the procedural dimension was found to have a significantly negative relationship. This research also found a significant, negative relationship between minority firm CEOs’ perception of distributive and informational justice and their perceptions of unethical behavior by large purchasing organizations.

Black Power—Nixon Style: The Nixon Administration and Minority Business Enterprise

In the recent debate over minority contract set-asides, many policy-makers have forgotten this program's origins. Richard Nixon, moved by philosophical, practical, and political considerations, made minority business enterprise a theme of his 1968 presidential campaign and his first administration. By using set-asides, the Nixon administration overcame its meager funding of the Office of Minority Business Enterprise (OMBE) and encouraged minority entrepreneurship. Nixon's actions influenced federal policy toward minority owned businesses for two decades.

Venture Capital Investment in Minority Business Enterprise: An Evaluation of MESBIC Investment Preferences

The encouragement of minority entrepreneurship is frequently advocated as a means of promoting social and economic development. The Minority Enterprise Small Business Investment Company (MESBIC) program pursues this goal by increasing the access of minority business enterprise (MBE) to both human and financial capital. This research provides an exploratory empirical description of the regional, industrial sector, and funding-stage preferences of MESBICs. It is concluded that these preferences are largely antithetical to the formation and expansion of MBEs in growth sectors that offer the market potential for entrepreneurial takeoff. The primary problem seems to be the small size of the majority of MESBICs. Policies governing licensing requirements and administration should therefore be reconsidered.