Public procurement strategy: the impacts of a preference programme for small and micro businesses

Abstract

The authors assess the impact of a public procurement programme designed to encourage small and micro businesses (SMBs) in Brazil to take part in public procurement auctions. The programme had no effect on contracted prices. However, SMBs were more likely to have their contracts terminated as a result of poor performance. Implications for theory and for practice internationally are discussed in this paper.

Keywords:

• Preference programme
• public procurement
• small and micro businesses (SMBs)

Acknowledgements

We are grateful for the suggestions by Gordon Murray (this PMM theme's editor) and PMM's anonymous referees. We are also grateful for the comments by Sérgio Lazzarini. Special thanks go to Natali Correia Souza (PIBIC/FAPESB) and Ramon Martins Souza (PIBIC/CNPq) for their research assistance.