SMEs in Public Procurement: new EU4PFM study highlights key barriers and ways to overcome them
What makes it difficult for Ukrainian and European small and medium-sized enterprises (SMEs) to participate in public procurement markets? And what can be done to improve their access?
These questions were explored in a study “From Barriers to Opportunities: SME Participation in EU and Ukrainian Public Procurement Markets”. The findings were presented by the EU4PFM Procurement experts during a webinar attended by representatives of the Ministry of Economy, businesses, researchers and analysts from RAIT.
Although Ukraine’s Prozorro system has made significant progress towards alignment with EU standards, barriers to cross-border participation remain. The study identified a number of concrete challenges.
For European SMEs seeking to participate in Ukrainian tenders, the main obstacles include overly complex procedures, technical difficulties, and the poor quality of tender documentation, such as unclear technical specifications and errors resulting from insufficient qualifications of contracting authority staff.
For Ukrainian SMEs interested in bidding for contracts in the EU, the key barriers are language challenges, additional documentary requirements and complex procurement procedures in contracting countries. Most survey respondents indicated a need for practical support.
- 75% of Ukrainian companies require specialised training
- 69% seek assistance in finding foreign partners and subcontractors
- 84% are considering becoming partners of foreign companies
The study findings will serve as a basis for new support measures aimed at SMEs in public procurement within the framework of the Strategy for the Development and Digital Transformation of Small and Medium-Sized Enterprises until 2027.
The webinar brought together key stakeholders to jointly shape a roadmap for future action. Key recommendations include further legislative harmonisation, digital integration of Prozorro with the European TED tender database, simplification of customs and financial procedures and support for consortia enabling SMEs to participate jointly in large-scale tenders.
Expanding SME access to public procurement markets is an important step towards Ukraine’s integration into the EU Single Market and a necessary condition for the country’s successful recovery and reconstruction.