Public Procurement and SME Inclusion: An Empirical Analysis of the Stationery Supply Sector

Public procurement is increasingly recognized as a strategic policy instrument for promoting the growth and inclusion of small and medium enterprises (SMEs) in developing economies. However, despite supportive policy frameworks in Zambia, SME participation in public procurement remains limited. This study examines the role of public procurement in enhancing SME participation, focusing on the office stationery sector in Lusaka. The study aims to assess the level of SME participation, identify key barriers and enablers, and propose strategies to improve engagement. Guided by a pragmatic philosophical approach, a sequential explanatory mixed-methods design was adopted. Quantitative data were collected from 90 SME respondents using structured questionnaires, while qualitative data were obtained from 11 key informants through semi-structured interviews. Quantitative data were analyzed using descriptive and inferential statistics, including regression analysis, and qualitative data were analyzed thematically. Findings reveal that SME participation remains low due to financial constraints, limited access to procurement information, and procedural complexities. However, procurement policy frameworks and financial support mechanisms significantly enhance SME participation. The study concludes that while public procurement has strong potential to promote SME inclusion, its effectiveness is constrained by institutional inefficiencies and firm-level capacity limitations. It recommends integrated policy reforms and targeted capacity-building initiatives to improve SME engagement in public procurement systems.