In general terms, affirmative actions constitute broad steps undertaken to support groups of

persons who have a historically being overlooked and segregated. In America, Affirmative
actions are initiated by institutions and governments to improve education opportunities, social
and financial strengths of groups considered to be minority societies. Minority groups may either
arise from race, gender, or age groups that have a history of being victimized. Currently,
government and institutions use procurement procedures as methods of acquiring goods and
services. Affirmative actions in procurement are policy steps taken in purchasing products and
services that consider minority communities. Since government and institutions adapted
affirmative actions, there has been an expansion in entrepreneurship and diversity in multiple
sectors of the economy.

The motivation for Affirmative action has consistently been to address and redress historical
injustices. Research shows historical injustice is the primary source of disparity in the financial
capabilities of people in a country. The process of Affirmative steps in America procurement can
be depicted back to 1953 when President Eisenhower signed the Small Business Act (SBA).SBA
was established to help small businesses and entrepreneurs become more viable. Moreover, the
act was also enacted to improve the enterprises to recover economically after a disaster. Support
for small business was through loans and credit facilities through banks and credit unions. The
Small business act was further developed and emphasized to facilitate minority entrepreneurs.
Section 8(a) of the newly revised law empowers minority entrepreneurs groups to secure
contracts from federal agencies. The small business Act has established the foundation of
Affirmative Action in America, and other policies have followed the SBA fundamental goals.
Affirmative actions were further enhanced by President Kennedy executive order 10925. The
law required federal contractors and private companies to adopt an affirmative action policy that
will ensure the elimination of discrimination of minority groups in the hiring and procurement of
contractors. The Civil Rights Act of 1964 establishes on top of that a benchmark of affirmative
action in supply. Civil Rights Act of 1964 established the Equal Employment Opportunity
Commission to monitor businesses' compliance with affirmative steps. Further development of
acts included an executive order from President Clinton. Successive government progressive
reforms to empower affirmative action show that affirmative actions have had a beneficial
impact on entrepreneurship and diversity.
Affirmative action has, however, encountered severe barriers in its implementation. Most of the
obstacles have been legal, and courts have differed on the need for implementing affirmative
actions in procurement. An excellent example of the constitutional barrier includes Rothe
Development Corp. v. U.S. Dept. of Defense, 194 F.3d 622 (5th Circuit. 1999). The court in
considering the validity of a statute that required the department of defense to undertake some
affirmative actions in procurement. In the law, the department of defense was obliged to award
five percent of all its contracts to small businesses owned historically by minority groups. The
statute allowed the payment of a 10-percent premium to the small businesses to help them meet
their contractual obligations. The court held the law was in contravention of the Fifth
Amendment. The decision in the case has hurt empowering minority businesses and increased
negative views on affirmative action in procurement.
In its decision, the Federal Circuit court cited Adarand Constructors, Inc. v. Pena, 515 U.S. 200,
115 S. Ct. 2097, 132 L. Ed. 2d 158, (1995).The Supreme Court thought that race-based
government initiatives must possess a compelling interest to do so. In its opinion, the Federal
Circuit Court did not observe any keen interest in the Department of Defense statute. However, it
wrong to conclude that the Adarand case was against affirmative action. The court agreed that a
carefully designed affirmative action program might help to realize, equal protection of the law.
President Bill Clinton weighed in on the case and concluded the court emphasized the need for
affirmative actions. Despite the setbacks and decrease in funding over the years, affirmative
steps have sustained a beneficial impact on businesses owned by minority communities.
Affirmative action in procurement is not limited to the USA. Other countries that have produced
a memoir of racial differentiation have also used affirmative action policy to address the issues
of segregation. Such countries include South Africa after the apartheid rule and Malaysia after
colonization. After Malaysia become independent, the promulgated constitution entitled the
native Malays social and economic preferences, the preferences were limited to 15 years until
1969. Some of the opportunities included distinctive permits and licenses for the businesses
owned by the natives. However, the measures were deemed not to be adequate, and as a result,
riots broke out in the country in the year 1969. Research indicated that economic discontent
represents the leading cause of the protests.
Government evaluation revealed that former measures to address economic inequalities in
Malaysia were unsuccessful. As a consequence of the disturbances, Malaysia developed
supplemental economic policies to address the discomfort. The primary economic reform was an
affirmative action that favored the indigenous community in procurement. Goods manufactured
by companies belonging to the native Malays were the first to be purchased, and the companies
received manufacturing incentives. Malaysia's preference program has had a tremendous
undeniable impact on the country's economy and quest to reduce the financial inequalities in the
country. The success of Malaysia's affirmative action in procurement has been used in other
countries as a benchmark to bridge economic disparities.
South Africa is an additional case study into the implementation of affirmative procurement
action. South Africa Apartheid regime lasted from the year 1948 to the year 1994. The system
placed racial economic and social barriers in the country. As a consequence of the apartheid
policy, the majority of white people were financially stable, while the majority of African natives
were poor living in slums. Following the fall of apartheid, the government instituted various
system changes to address the economic and financial imbalances caused by the disparities under
apartheid. Such policies include the creation and funding of the Black Economic Empowerment
(BEE). Black Economic Empowerment in South Africa contains three main design issues. The
first strategy is to support black enterprises by enabling companies to acquire assets. Secondly,
the system was to guarantee the natives employment through preferential employment. The final
policy change had a distinct procurement process through tendering that favors Native Africans.
However, South Africa's affirmative actions have not been fully implemented compared to
Malaysia, leading to strikes and riots in the country over income inequalities.