Procurement Can Be a Powerful Tool for Local Economies, but Takes More Than a Policy Change to Work

Originally Posted at the Institute of Local Self-Reliance

At least 45 states, plus the District of Columbia, have procurement policies designed to give a preference to businesses that meet certain characteristics, such as those that are owned by veterans, pay certain wages, use environmentally sustainable practices, or manufacture within the state. Of these, about half have adopted an explicit preference for businesses that are small and/or local. These policies vary considerably. Some apply only in narrow circumstances; others are broader. In addition, more than thirty states have policies aimed at steering purchasing to minority- and women-owned businesses. Looking beyond state governments, large numbers of counties, cities, and towns have procurement policies of their own.

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Procurement Can Be a Powerful Tool for Local Economies, but Takes More Than a Policy Change to Work

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