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SMEs in Public Procurement

Practices and Strategies for Shared Benefits

image of SMEs in Public Procurement

The relevance and economic implications of public procurement – which represents 12% of GDP and one-third of government expenditures in the OECD area - make it a powerful tool for improving public service delivery. At the same time, governments are increasingly using their purchasing power to pursue strategic objectives in different policy areas such as sustainability, innovation or providing support to small and medium-sized enterprises (SMEs). Making it easier for SMEs to access public procurement opportunities improves the general economic environment, promotes inclusive growth and supports principles such as equal treatment, open access and effective competition. This report takes stock of the approaches adopted in 37 OECD and non-OECD countries to help SMEs perform better in public procurement markets, including removing barriers to their participation. The report also describes the main features of a public procurement system that benefits both the public sector and SMEs.

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Lithuania

SMEs in Lithuania are defined by the Republic of Lithuania Law on Small and Medium-sized Business Development (Ministry of Economy of the Republic of Lithuania, 2017[1]). The law defines micro-enterprises as businesses with fewer than 10 employees and less than EUR 2 million in annual turnover; small enterprises as businesses with fewer than 50 employees and an annual turnover below EUR 10 million; and medium-sized enterprises as those with fewer than 250 employees and less than EUR 50 million in annual turnover (Ministry of Economy of the Republic of Lithuania, 2017[1]).

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