President Nixon established the Office of Minority Business Enterprises in 1969 as part of his efforts to lead minority entrepreneurship. The agency's purpose was to provide management and technical assistance, information, and advocacy in the private sector for minority business development. (Minority Owned Businesses Law & Legal Definition. (n.d.)
The Small Business Administration (SBA) also increased efforts to help minority business owners get necessary financing. The agency introduced two programs; loan assistance and special procurement of federal contracts, known as set-asides. Many state and local governments set up similar privileged contracts to assist minority contractors (Cox, J. (n.d.). Set asides were first produced, when the U.S. government passed a law that set aside five percent of all procurement contracts for small businesses that are owned by socially and economically underprivileged individuals. (MINORITY-OWNED BUSINESSES.