The US Census Bureau puts the racial breakdown in the City of Memphis at 62.6% African American, but a study released today shows that contracts to minority owned businesses only account for 9.6% of monies paid out by the City.
The full report was released to the City Council in Executive Session yesterday. Audio of the presentation should be available on on their website later today or tomorrow.
According to the Memphis Business Journal:
Reasons for the disparity in the most recent study vary. Nineteen percent of the 326 firms that participated say they experience discrimination in business dealings with the private sector. Other reasons included limited knowledge of purchasing and contracting policies and procedures, financing for projects, time allotted to prepare bids and quotes and expenses associated with bid preparation.Other firms mentioned the lack of information on why bids for projects were rejected, which would allow a more complete bid for future projects.
As far as remedying issue, the study found Memphis does not have a formal commercial nondiscrimination component in the MBWE program nor does it maintain a set financial assistance or bonding program or policy to address prompt or consistent payment.The report suggests the city work to provide more information of business opportunities to minority firms and work with federal procurement programs for minority firms in the region. It also suggested more collaboration between minority firms to obtain larger contracts.