A Comparative Analysis of SME Friendly Public Procurement: Results from Canada, Hungary and Italy

ABSTRACT

This paper studies SMEs’ participation in public procurement in light of perceived barriers and expected benefits of accessing the public marketplace. It presents a comparative analysis of SMEs’ participation in three countries that share similar approaches to SME-friendly public procurement. A common survey protocol was developed to be administered to SMEs in the three countries. Data collected were then analysed using regression methods. Findings suggest that some issues that are typically considered critical barriers, namely administrative requirements and award based on lowest price do not hinder participation. However, findings also suggest that firms’ characteristics associated with size are still relevant hindrances, and that SMEs’ involvement are affected by a shortage of tangible (human and financial) and intangible resources (experience). These findings provide guidance to fine-tune public procurement policies directed to SMEs.

KEYWORDS:

• Public procurement
• public policy
• SME
• tender participation
• award rules

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. http://laws-lois.justice.gc.ca/eng/acts/P-38.2/index.html Accessed on 2018-09-09.

2. https://buyandsell.gc.ca/procurement-data/contract-history/download-contract-history-data Accessed on 2018-09-09.

3. https://buyandsell.gc.ca/sites/buyandsell.gc.ca/files/pwgsc_study-sme-federal-procurement_2012_0.html Accessed on 2018-09-09.