SME Participation Barriers in European Union Public Procurement Markets

Authors

  • Solomon Kyalo Mutangili

DOI:

https://doi.org/10.53819/81018102t2449

Abstract

This study examined the barriers faced by Small and Medium-sized Enterprises (SMEs) in accessing public procurement markets within the European Union (EU), despite their significant economic contributions and the EU's attempts to foster an inclusive procurement environment. The analysis explored key challenges, including administrative complexity, financial constraints, limited accessibility, and competition with larger firms. Existing EU policies, such as the Small Business Act and Directive 2014/24/EU, aimed to support SME participation by simplifying procedures and mandating contract segmentation; however, these policies were found to have inconsistent impacts across member states due to varying levels of enforcement and implementation. Through case studies of successful SME integration in countries like France, Italy, Poland, and the United Kingdom, this study highlighted effective practices, including contract segmentation, digital procurement platforms, capacity-building programs, and set spending targets. These case studies provided practical insights into how targeted policies and support mechanisms can increase SME participation in public procurement. Recommendations included enforcing contract segmentation, enhancing digital procurement accessibility, expanding SME training programs, and establishing participation targets to improve consistency across the EU. Findings underscored that, while EU policy initiatives made strides, further coordinated efforts are essential to address remaining barriers and promote a fairer, more accessible procurement landscape for SMEs across member states.

Keywords: SME participation, EU public procurement, procurement barriers, SME policy

References

Crisan, E., & Borza, A. (2015). "European SMEs' participation in public procurement: Opportunities and barriers." Transylvanian Review of Administrative Sciences, 44, 25-41.

European Commission. (2018). Small Business Act for Europe. Retrieved from [link to European Commission website].

European Commission. (2021). Annual Report on European SMEs 2020/2021. Retrieved from [link to European Commission website].

Flynn, A., & Davis, P. (2014). "The role of the European Union in public procurement reform in the UK and Ireland." Public Money & Management, 34(3), 203-210.

Flynn, A., & Davis, P. (2016). "Explaining SME participation and success in public procurement using a capability-based model of tendering." Journal of Public Procurement, 17(3), 337-372.

Flynn, A., & Davis, P. (2017). "SME participation and public procurement in the EU: A capability-based view." Journal of Public Procurement, 17(3), 337-372.

Flynn, A., McKevitt, D., & Davis, P. (2013). "The impact of size on small and medium-sized enterprise public sector tendering." International Small Business Journal, 31(4), 404-421.

Kidalov, M. (2015). "Small business contracting in the United States and Europe: A comparative assessment." Public Contract Law Journal, 44(2), 195-234.

Loader, K. (2013). "Is public procurement a successful small business support policy? A review of the evidence." Environment and Planning C: Government and Policy, 31(1), 39-55.

Loader, K. (2015). "SME access to public procurement: An analysis of the experiences of SMEs supplying the public sector." Journal of Purchasing and Supply Management, 21(3), 205-213.

OECD. (2019). Government at a Glance 2019. Paris: OECD Publishing.

Downloads

Published

2024-11-19

How to Cite

Mutangili, S. K. (2024). SME Participation Barriers in European Union Public Procurement Markets. Journal of Procurement & Supply Chain, 8(3), 70–78. https://doi.org/10.53819/81018102t2449

Issue

Section

Articles

Most read articles by the same author(s)

1 2 3 > >>