[quote="eandresmo"]The United States government has a long-standing policy of using federal funds to keep small business viable. The Small Business Act of 1953 authorized the Small Business Administration (SBA) to enter into contracts with government agencies having procurement powers and to arrange for fulfillment of these contracts by awarding subcontracts to small businesses. In the mid-1960's, during the war on poverty years, Congress hoped to encourage minority entrepreneurs by directing such funding
to minority businesses. At first this funding was directed
toward minority entrepreneurs with very low incomes. A 1967 amendment to the Economic Opportunity Act directed the SBA to pay special attention to minority-owned businesses located in urban or rural areas characterized by high proportions of unemployed or low-income individuals. Since then, the answer given to the fundamental question of who the recipients should be
--the most economically disadvantaged or those with the best prospects for business success--has changed, and the social goals of the programs have shifted, resulting in policy changes.
Q: The passage mentions which of the following as a basic consideration in administering minority-business funding programs?
a. Coming up with funding for the programs
b. Encouraging government agencies to assist middle and high-income minority entrepreneurs
c. Recognizing the profit potential of small service businesses in urban communities
d. Determining who should be the recipients of funding
e. Determining which entrepreneurs are likely to succeed.
I've highlighted and underlined the relevant portions of the first paragraph. The last sentence here sets up the organization of the rest of the passage. Also, the language of "fundamental question" maps nicely onto the language of "basic consideration" in the stem. If you have a more specific question about the passage or one of the other answer choices, I am happy to follow up.
Economist GMAT Tutor