Work

Procurement policy and SME participation in public purchasing

Year: 2020

Type: article

Abstract: This study investigates the relationship between regulatory policies governing public procurement and participation by small and medium enterprises (SMEs), using a large dataset on European procurement. We find that better quality procurement regulation is associated with greater SME participation and higher probability that SMEs win contracts. Dividing contracts into smaller lots, a key feature of 2014 EU procurement regulation reform, bolsters participation by SMEs but only increases the probability of SMEs winning contracts for small value lots (€25,000 or less). Our results suggest governments seeking to enhance participation by SMEs in public procurement without explicitly favoring SMEs can do so by improving the overall quality of procurement processes.

Source: Small Business Economics

DOI: 10.1007/s11187-020-00414-z

Authors: Bernard Hoekman, Bedri Kamil Onur Taş

Institutions: Centre for Economic Policy Research, Economic Research Forum, European University Institute, TOBB University of Economics and Technology

Language: English

Topic: Public Procurement and Policy

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,750