This article takes a new approach to exploring a problem that raises a common question across jurisdictions, namely why do Small to Medium Enterprises (SMEs) not win more public tenders than their numbers would suggest? Traditionally, the focus of the literature has been on the identification of barriers facing SMEs in public contracting, with findings encouraging public procurement systems to rightly introduce a range of SME-friendly procurement initiatives; yet, despite such efforts SME success rates generally remain low. This focus on the identification of barriers to SMEs accessing public contracts, although laudable, has overlooked a key question: what factors might explain sub-optimal tender submissions by SMEs? This study addresses this gap in the literature, adopting an empirical approach to examine actual tenders, an exercise not undertaken previously, for the purpose of ascertaining reasons that could explain why
SMEs’ public tenders can frequently be suboptimal in terms of their quality. Using
conventional content analysis, the written content of unsuccessful SME tender submissions was examined, gathered from tenders submitted by SMEs in six European countries. A range of reasons that explain suboptimal SME tender quality is revealed and
categorised. While the primary research method was empirical analysis of the tenders, the authors also conducted interviews with the study’s SME participants in order to capture their reflections as to why they felt they were unsuccessful in the tenders they submitted. The study’s findings reveal that SME tender weaknesses can be grouped into five distinct categories and also expose a disconnect between what SMEs think are good tender submissions and what are good tender submissions. Action is required from both sides of the SME supplier / public purchaser interface to remedy the issues identified. To support this process, the authors propose a framework which attempts to capture the core reasons for suboptimal tender quality. An illustrative SME-Public Sector Tendering Charter and Intervention Methodology is also proposed, to help
improve SME tender quality. The Charter has been framed to broadly align with the European Commission’s European Code of Best Practices Facilitating Access by SMEs to Public Procurement Contracts. It has the potential to be adapted, as appropriate, to local conditions in jurisdictions that take a proactive stance towards embracing SMEs participation in public contracting