Empowering small and medium-sized enterprises in public procurement

Xue, Xinyue (2026). Empowering small and medium-sized enterprises in public procurement. University of Birmingham. Ph.D.

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Abstract

With SMEs playing a vital role in the economy and society, and public procurement representing substantial market opportunities, governments increasingly recognise the importance of facilitating SME participation in public procurement. However, the design of supportive measures, referred to as SME-friendly measures, remains contested, particularly regarding their effectiveness in achieving the intended objectives and their potential trade-offs with other objectives, such as value for money, efficiency, non-discrimination, and competition in a public procurement system. This thesis examines such measures in public procurement law, analysing the barriers hindering SME participation, how effectively different measures address these barriers, and what trade-offs arise in practice.

The analysis focuses on four legally binding SME-friendly measures: dividing large contracts into lots, managing the qualification process, bid preferences, and reserved contracts. Examples are drawn from four jurisdictions where these measures have been most extensively developed: the European Union, the United States, Brazil, and South Africa. These measures are distinguished by their nature, with the first two representing facilitative approaches that reduce barriers without granting competitive advantages, whilst the latter two are preferential measures that explicitly favour SMEs in procurement procedures.

The findings reveal that whilst SME-friendly measures can effectively address certain entry barriers, their success depends critically on careful legal design and robust implementation. The thesis demonstrates that the selection and combination of measures depend on specific jurisdictional objectives and market dynamics: facilitative measures prove more effective where SMEs face procedural barriers to entry, whilst preferential measures may be more effective in markets where SMEs struggle to compete despite participation. Furthermore, this thesis establishes that SME-friendly measures do not necessarily compromise other objectives of public procurement and may enhance competition and value for money when calibrated carefully. Accordingly, the thesis identifies key considerations for legislators and policymakers, offering guidance on selecting, combining, and calibrating SME-friendly measures within specific public procurement systems.

Type of Work:

Thesis (Doctorates > Ph.D.)

Award Type:

Doctorates > Ph.D.

Supervisor(s):