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

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.