New York State should develop a comprehensive justification for its involvement in minority business development and each State program should be closely associated with that rationale. Minority business development programs are often short-sighted, potentially conflicting, and yield unimpressive results. Development of Economic Development Zones would assist minority and women-owned businesses and could be essential to the total revitalization of distressed communities. The following specific recommendations are included: (1) purchase a specific proportion of goods and services from minority businesses; (2) implement a uniform system to penalize non-compliance with affirmative action obligations in both construction and purchase contracts; (3) increase participation on an equity basis in minority and women-owned businesses, and encourage participation by the private sector; (4) encourage minority venture capital in the private sector by using creation, establishment, and participation in such programs as criteria in the evaluation and selection of banks that compete for State business; (5) review all financial and technical assistance programs and business tax incentives programs to eliminate prohibitions that preclude participation by minority businesses; (6) encourage small business employers to locate in distressed communities and establish tax incentives for employee stock ownership plans; (7) continue support for the Urban Development Corporation (UDC) program to increase the bonding assistance contract ceiling; and (8) encourage private investment in the recently created Economic Development Zone Capital Corporations. Statistical data are included on four tables, and a discussion and summary of recommendations to the governor's proposed Opportunity Zone legislation is appended. (FMW)