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Procurement policy and SME participation in public purchasing

Author

Listed:
  • Bernard Hoekman

    (European University Institute
    Centre for Economic Policy Research
    Economic Research Forum)

  • Bedri Kamil Onur Taş

    (Economic Research Forum
    TOBB ETU)

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.

Suggested Citation

  • Bernard Hoekman & Bedri Kamil Onur Taş, 2022. "Procurement policy and SME participation in public purchasing," Small Business Economics, Springer, vol. 58(1), pages 383-402, January.
    • Handle: RePEc:kap:sbusec:v:58:y:2022:i:1:d:10.1007_s11187-020-00414-z
    DOI: 10.1007/s11187-020-00414-z
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    References listed on IDEAS

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    Cited by:

    1. Dorothea Schäfer & Andreas Stephan & Sören Fuhrmeister, 2024. "The impact of public procurement on financial barriers to general and green innovation," Small Business Economics, Springer, vol. 62(3), pages 939-959, March.
    2. Schneider, Sebastian & Reiff, Annika & Schlömer-Laufen, Nadine, 2023. "Mittelstandsfreundliche Gestaltung von öffentlichen Ausschreibungen," IfM-Materialien 301, Institut für Mittelstandsforschung (IfM) Bonn.
    3. Ari Van Assche & Ali Arsalan Pasha & Lucian Cernat & Hinrich Voss, 2024. "From the editor – Governments as buyers: the international business implications of public procurement," Journal of International Business Policy, Palgrave Macmillan, vol. 7(2), pages 133-146, June.
    4. Hoekman, Bernard & Onur Taş, Bedri Kamil, 2024. "Discretion and public procurement outcomes in Europe," European Journal of Political Economy, Elsevier, vol. 82(C).
    5. Blind, Knut & Niebel, Crispin, 2022. "5G roll-out failures addressed by innovation policies in the EU," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    6. Ecaterina Milica DOBROTA & Roxana SARBU & Silvius STANCIU, 2022. "The SMEs Accessibility to Public Procurement in Romania. The Grounds for Bids Rejection," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 68-75.

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    More about this item

    Keywords

    L26; H57; O12;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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