Improving SME Access to Public Procurement

Improving SME Access to Public Procurement

The Experience of Selected Countries You do not have access to this content

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Author(s):
ITC
16 Nov 2001
Pages:
156
ISBN:
9789213618479 (PDF)
http://dx.doi.org/10.18356/37cf76fa-en

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This guide focuses on the role of government programmes in public procurement to assist small and medium-sized enterprises (SMEs) in becoming better exporters. The guide identifies and explains advantages and disadvantages of public procurement programmes; looks at criteria used for determining eligibility for SME status in various countries; and examines programmes used by selected countries to assist SMEs in a procurement context. It also gives guidance on the implementation of public procurement programmes designed to assist SMEs.

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  • Foreword

    Small and medium-sized enterprises (SMEs) can play an important role in the growth and development of countries. They have the potential to become significant exporters, to promote economic growth, and to alleviate poverty among various groups in a society (Badrinath, 1997; Badrinath and Kirpal, 1997). There is not much in the literature, however, on public procurement policies that might assist SMEs in becoming competitive and export oriented. What roles can government play in public-sector procurement to enhance the comparative advantages of SMEs or to alleviate their competitive disadvantages? What role can public-procurement programmes play to make SMEs competitive in export markets?

  • Acknowledgements

    This Guide was prepared under the direction of Wayne A. Wittig, ITC Senior Adviser on Public Sector Procurement. John Linarelli, lecturer in law at the University of Wales, Aberystwyth, was lead investigator and principal author.

  • Note
  • Introduction

    This Guide attempts to provide the best available analytical and factual bases for considering the roles of public procurement in SME assistance. It is intended for governments, SMEs and interest groups that support SMEs (chambers of commerce, industry associations and SME associations, for example) in developing countries and economies in transition.

  • Business and policy environment

    This unit identifies and explains the various challenges, advantages and disadvantages of public procurement programmes designed to assist SMEs from two perspectives. First, it addresses the features of SMEs as business concerns and the private costs and benefits to SMEs themselves in seeking and performing public contracts. It reviews the constraints on the competitiveness of SMEs in public procurement markets. Second, the unit examines the costs and benefits of public procurement programmes intended to assist SMEs from the governmental and societal points of view.

  • What is an SME?

    This unit looks at the criteria used for determining eligibility for SME status in various countries and explains the relevance of SMEs in the global market place. The definitions of SMEs vary from country to country, depending on such variables as the country’s state of development, its size, the strength of its industrial and business sectors, and the particular problems SMEs face in that country.

  • Procurement reform
  • Targeted assistance and intervention
  • Policy implementation

    This Unit gives guidance on the implementation of public procurement programmes designed to assist SMEs. It provides an institutional model that governments can follow to initiate, develop, implement, maintain and, if necessary, modify or abolish procurements to assist SMEs.

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