Affirmation Action Laws on Small Business Firms

This research examines the effects on small business organizations of affirmative action laws. Affirmative action legislation in the United States at both the federal and state levels of government establish guidelines for the development and implementation of social policy with respect to equal employment opportunities and with respect to the rectification of past acts of employment discrimination against selected population groups. The importance of small business activity to the American can hardly be exaggerated. Defining a small business as one with either fewer than 100 employees, or less than one-million dollars in annual receipts, somewhat more than two-thirds (67.9 percent) of all business enterprises in the United States are classified as small. These firms, in turn, account for 40.8 percent of non-government and non-farm employment, 35.8 percent of sales revenues, and 32 percent of the country's gross national product.

The fact that small businesses employ 40 percent of the American workforce illustrates the magnitude of their activity on society. Apart from this concrete impact, small business also has an abstract impact on American society. The very presence of the small business sector supports the dreams of individuals that they can, someday, be independent of large organizations. While the likelihood that such an eventuality will ever come to pass for most Americans is quite low, the co