Does Strategic public procurement for SMEs work?

Abstract

Strategic public procurement increasingly involves programs and approaches directed at SMEs, within the wider growing field of public procurement studies. This review considers whether strategic public procurement for SMEs works in the context of the peer-reviewed scholarly evidence that is available. The article looks at SME definitions and participation in the public sector marketplace, and briefly explores the policy context of Australia and New Zealand. The review identified twenty-two studies that met the inclusion for the review, but also weaves in important articles that support the evidence that may not have met the strict criteria. The review found little evidence in relation to Australia and New Zealand, leading to the first conclusion that that baseline information is sorely lacking while policy continues to evolve. SME-friendly procurement policies are hard to measure although the growing use of targets could begin to ameliorate this. The diversity of SMEs requires more nuanced policy development and public procurement organizations need to continue to work at reducing barriers to market entry through a variety of methods. Procurement policy for SMEs needs to be fully implemented, tracked and reviewed in order to understand its effects in different contexts.