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2018 | OriginalPaper | Chapter

The Effect of EU Membership on Public Procurement for SMEs in Post-Transition Countries

Authors : Sunčana Slijepčević, Jelena Budak, Edo Rajh

Published in: Entrepreneurship in Post-Communist Countries

Publisher: Springer International Publishing

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Abstract

The government procurement markets in post-transition countries make a significant share of national economy. The literature on public procurement and involvement of SMEs noted severe entry barriers for companies to access public procurement markets, and the set of policies were established in the EU to promote SMEs’ involvement in public procurement. However, it remains unclear what are the effects in the acceding and new EU member states. Based on the experience of companies in Croatia and Bosnia and Herzegovina (BiH), the analysis of obstacles for SMEs to participate in the public procurement in two post-transition countries is offered. The survey evidence collected in national business sector is used to explore if there were differences observed between two countries, and do they stem from the different EU membership status. It contributes to the existing literature by providing a comparative study of the EU effects on public procurement for small businesses in a unique post-transition context.

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previous chapter The Role of Networking in the Company’s Growth Process

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See, for example, Alpeza et al. (2015) report on Croatian SME sector or Vanjskopoliticka inicijativa BH 2013 report on small businesses in BiH.

Available data concern only successful bidders, but there is no data on actual attempts of SMEs to participate in public procurement process (both successfully and unsuccessfully).

Micro-enterprises are defined as enterprises that employ fewer than 10 persons and whose annual turnover or annual balance sheet total does not exceed 2 million euros; small enterprises are defined as enterprises that employ fewer than 50 persons and whose annual turnover or annual balance sheet total does not exceed 10 million euros; medium-sized enterprises are defined as enterprises that employ fewer than 250 persons and whose annual turnover or annual balance sheet total does not exceed 50 million euros. Large enterprises are above these thresholds. Commission Recommendation 2003/361/EC, http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition/index_en.htm

Directive 2014/23/EU for concessions, Directive 2014/24/EU for public procurement in general, and Directive 2014/25/EU for public procurement in the water, energy, transportation sectors.

For EU public procurement principles, see more in Aviani (2007).

Questionnaires are available upon request.

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Title: The Effect of EU Membership on Public Procurement for SMEs in Post-Transition Countries
Authors: Sunčana Slijepčević
Jelena Budak
Edo Rajh
Publisher: Springer International Publishing
Book: Entrepreneurship in Post-Communist Countries
Print ISBN: 978-3-319-75906-7

Electronic ISBN: 978-3-319-75907-4

Copyright Year: 2018
DOI: https://doi.org/10.1007/978-3-319-75907-4_11

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