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2025 Minnesota Joint Disparity Study

Comment Period Now Open for Draft Study Reports

*Saint Paul* — The State of Minnesota along with regional and local partners seek to ensure fairness in public contracting opportunities for minority- and woman-owned businesses and other historically disadvantaged businesses. On June 24, the State and 15 cities, counties and other public agencies released results of their joint draft study of business utilization in state and local government contracts and in the local marketplace.

The State and other participating entities are seeking public review and input on the information in the draft study reports before they are finalized in July. Each draft report is available at the website below. There are many opportunities to learn more about study results and provide insights.


* Visit study website ([link removed])
* Participate in a public forum (see schedule on the website [ [link removed] ])
* Give input via 602-704-0125 or send to [email protected]

For other information, please reach out to [email protected].

The State contracted with Keen Independent Research to conduct the 2025 Minnesota Joint Disparity Study. The 18-month research effort compiled data about marketplace conditions and any disparities in contracting, as well as insights from business owners and other groups. In total, more than 2,200 business owners and other individuals provided input.

The joint study reviewed statewide procurement for the University of Minnesota and Minnesota State Colleges and Universities as well as for state agencies such as the Minnesota Department of Transportation. Other study participants were Metropolitan Airports Commission; Metropolitan Council; Metropolitan Mosquito Control District; the cities of Minneapolis, Saint Paul, Bloomington, Brooklyn Park and Rochester; Hennepin and Ramsey counties; Hennepin Healthcare and Saint Paul Public Schools.

Research showed a pattern of disparities or barriers for Black Americans, Asian-Pacific Americans, South Asian Americans, Hispanic Americans, American Indians and women and the businesses they own. Access to capital was a particular barrier for these businesses. There were also disadvantages for firms owned by members of the LGBTQ+ community, persons with disabilities, veterans and service-disabled veterans.

The joint draft study reviewed statewide procurement for 16 state and local government entities [ [link removed] ], examining more than 150,000 contracts and subcontracts totaling $31 billion from July 2016 through June 2023. The review found that small businesses received $14 billion, or 43% of these contract dollars. About 9% of contract dollars went to minority- and woman-owned (MBE/WBE) firms, less than the 22% that might be expected from the availability analysis performed. This disparity occurred even though many entities operate small business enterprise and MBE/WBE-type programs. Results for entities without any programs showed only 0.2% of contract dollars going to MBEs and 1% of dollars going to WBEs.  

Some Minnesota entities with small business and MBE/WBE programs narrowed or eliminated disparities in program participation. Over the seven-year study period, MBE/WBE participation in State contracts was 10.5%, but recent strengthening of the State’s Targeted Group Business Program improved MBE/WBE utilization to 14% for FY2023.  

Keen Independent Research is a national economic consulting firm that has performed similar disparity studies for state and local governments across the country, including the 2017 Minnesota Joint Disparity Study. An External Stakeholder Group provided input throughout. Information from the disparity study will be used by the 16 state and local entities to determine whether new targeted business programs are needed and whether existing small business enterprise and MBE/WBE programs should be continued or improved.

 



*For additional information, contact:*

Julie Nelsen, Communications Director
(651) 201-2565 or [email protected]






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