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Federal efforts to aid minority businesses began in the
1960's when the Small Business Administration (SBA)
began making federally guaranteed loans and government-
sponsored management and technical assistance available
to minority business enterprises. While this program
enabled many minority entrepreneurs to form new
businesses, the results were disappointing, since
managerial inexperience, unfavorable locations, and capital
shortages led to high failure rates. Even 15 years after the
program was implemented, minority business receipts were
not quite two percent of the national economy's total
receipts. Recently federal policymakers have adopted an
approach intended to accelerate development of the
minority business sector by moving away from directly
aiding small minority enterprises and toward supporting
larger, growth-oriented minority firms through intermediary
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