A TAXONOMY OF APPROACHES FOR PROMOTING SMEs ACCESS TO PUBLIC PROCUREMENT MARKET

Abstract

In spite of the fact that public procurement is increasingly becoming a popular technique for small business empowerment, there are various challenges facing SMEs in public procurement. Using Nigeria as a platform, this paper examines barriers that hinder SMEs access to public procurement markets. Data were collected from literature review, analysis of documents and semi-structured interviews. The results show that lack of transparency in tendering often discourages SMEs from getting involved in public procurement in Nigeria. It further highlights the need for actions to address issues facing SMEs at different stages of the procurement process. By integrating research findings into existing knowledge, a taxonomy of techniques for enhancing SMEs access to public procurement is proposed. The taxonomy reveals specific schemes and measures to promote SME participation in public procurement. This will offer guidance to governments, policy makers and procurement experts on the implementation of SME-friendly procurement practices. The study adds to the on-going debates on the significance of public procurement policy on SME development.