ASSESSING THE PARTICIPATION OF SMALL AND MEDIUM ENTERPRISES IN PUBLIC PROCUREMENT

Abstract

The study sought to establish how SME’s competitiveness, access to capital, information accessibility and Legal requirements pose a challenge to SME’s participation in public procurement market in Ghana. The study design was a descriptive and targeted a population of 1,000 SMEs in the Northern Region with 300 SME employees sampled. A total of 18 members of nine (9) procurement committee of the respective institutions were sampled to confirm the findings from the SMEs. Structured questionnaire was used for data collection from the field and analysed using SPSS (Statistical Package for Social Sciences) software version 22. Demographics of the respondents was analysed using frequency tables, percentages and graphs with independent samples t test used to analyse the difference between the variables in responses from the SMEs and the procuring entities. Responses from both SMEs and procuring entities on competitiveness, Information access, and access to capital, had no statistically significant difference hence the results were certified. Legal requirements had the two entities recording different responses all together from the statistical test. It was found out that SME’s chances of participating in public tenders is limited by irregular access to tender information, ICT usage, network of SME’s, and tender processes. Access to information on government and private funding, inaccessibility to such opportunities and lack of financial support to invest in modern technologies, technicality of laws and policies which govern public procurement. The study recommends that the legal requirements stated for SMEs in the Public Procurement Act 914 needs further review for possible amendments to the Act. Future research should consider conducting similar research in other parts of the country and may also assess the competitiveness of SMEs against large businesses.