Exploring SMEs’ participation and success in public tenders within the defence sector

What the paper says

Purpose Government expenditures constitute a significant driver of the economy. Despite policy measures, small and medium-sized enterprises (SMEs) encounter more difficulties in qualifying for government contracts compared to large corporations. Literature shows mixed findings on obstacles, countermeasures and their effectiveness. This study aims to provide new insights and add nuance to the existing literature for scholars, while also contributing to fair and innovative procurement practices tailored to SMEs and government procurement officers. Design/methodology/approach The authors interviewed both public procurement professionals and SME employees with experience in tendering processes. Findings Public purchasers exhibit a strong focus on legality, driven by a fear of errors and hampered by improper evaluation methods. They are reluctant to the parceling of tenders, although this practice could genuinely enhance opportunities for SMEs. Poor timing, unpredictability, overly tight scheduling and unattainable deadlines in public tenders emerge as significant obstacles for SMEs. Social implications The authors aim to provide insights that could help shape policy measures and actionable strategies to alleviate barriers for SMEs, particularly in high-demand sectors such as the defense sector. Originality/value By addressing the perceived and actual obstacles, experienced by both sides of the public purchasing domain, the authors are trying to contribute to a better understanding of how public procurement practices can be improved to foster SME participation.