Public procurement accounts for around 14% of the EU’s GDP, but despite the new SME-friendly provisions introduced by the 2014 public procurement directives, SME participation in public procurement is still limited compared to their role in national economies. Several barriers make it difficult for SMEs to participate in and win tenders.
Easier access to public procurement markets can help SMEs find new opportunities and grow. In a time of crisis, greater SME participation in public procurement can also make a significant contribution to economic recovery.
Being a public sector supplier with long-term contract commitments may shield a company against recession. Moreover, as subcontractors of larger firms in public procurement, SMEs could increase their business opportunities while reducing cash flow volatility and other risks. The strong involvement of SMEs in public procurement also allows contracting authorities to considerably broaden their potential supplier base and benefit from more competition for public contracts.
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