SME Participation Barriers in European Union Public Procurement Markets

This study examined the barriers faced by Small and Medium-sized Enterprises (SMEs) in accessing public procurement markets within the European Union (EU), despite their significant economic contributions and the EU's attempts to foster an inclusive procurement environment. The analysis explored key challenges, including administrative complexity, financial constraints, limited accessibility, and competition with larger firms. Existing EU policies, such as the Small Business Act and Directive 2014/24/EU, aimed to support SME participation by simplifying procedures and mandating contract segmentation; however, these policies were found to have inconsistent impacts across member states due to varying levels of enforcement and implementation. Through case studies of successful SME integration in countries like France, Italy, Poland, and the United Kingdom, this study highlighted effective practices, including contract segmentation, digital procurement platforms, capacity-building programs, and set spending targets. These case studies provided practical insights into how targeted policies and support mechanisms can increase SME participation in public procurement. Recommendations included enforcing contract segmentation, enhancing digital procurement accessibility, expanding SME training programs, and establishing participation targets to improve consistency across the EU. Findings underscored that, while EU policy initiatives made strides, further coordinated efforts are essential to address remaining barriers and promote a fairer, more accessible procurement landscape for SMEs across member states. Keywords: SME participation, EU public procurement, procurement barriers, SME policy