Over the past few months, we’ve spoken with dozens of SMEs across Europe (founders, consultants, technical leads, and bid writers), all with one thing in common: frustration with public procurement.

Some shared stories about missed deadlines over technicalities. Others described submitting well-crafted proposals that never made it past evaluation. And many admitted they weren’t sure what, exactly, they were doing wrong.

We’re not here to name names. But these conversations revealed patterns, mistakes that show up again and again. Not because these companies were inexperienced, but because public procurement comes with rules most suppliers never learn until it’s too late.

And that’s the point of this article.

We’ve collected the five most common mistakes SMEs make when trying to win public tenders, and more importantly, what to do differently.

Because public procurement isn’t impossible. But it does demand that you stop guessing and start understanding the system.

Let’s begin with one of the most common (and limiting) assumption: that buyers only work with big companies.

Mistake #1: Thinking public buyers only work with big companies

It’s a common assumption… and one that keeps many SMEs from bidding at all.

“We’re too small. They’ll just go with the usual big players.”

That’s exactly what a software startup in Lisbon believed when they first saw a city council tender for a new ticketing system. It looked perfect — but they didn’t even consider applying. A year later, they learned the contract was awarded to a 10-person firm based in the next region. Smaller team. Less experience. But they had a clearer offer, and they showed up.

The truth? Public buyers across Europe are legally required to open many contracts to competition, including SMEs. In fact, EU procurement law encourages it. And more buyers are starting to look beyond the big names, for innovation, agility, and better value.

Of course, big firms still win often. But assuming the door is closed means you’ll never find out if it’s open.

Fix it: If you see a tender that fits your service, experience, and region — don’t self-disqualify. Check the eligibility, review the scope, and start asking the right questions.

Next: Let’s talk about the price trap SMEs fall into.

Mistake #2: Focusing too much on price, not enough on value

An SME in Belgium once won a large cleaning services contract by submitting the second most expensive bid.

Sounds impossible, right? But it’s not.

They didn’t win on cost — they won on value. Their proposal showed a more efficient staffing plan, greener cleaning supplies, better risk control, and a clearer communication process. The buyer’s evaluation criteria gave only 40% weight to price. The rest came down to quality, environmental practices, and team availability.

Meanwhile, the cheapest bid failed to explain how they’d actually deliver.

This happens more often than you’d think. Many SMEs assume public procurement is a race to the bottom, that you win by quoting the lowest number. But most tenders today are awarded using “MEAT”, the Most Economically Advantageous Tender method.

That means price matters, but so do delivery timelines, team structure, experience, and added value.

Fix it: Always read the evaluation criteria carefully. If price is only part of the score, don’t lead with discounts, lead with substance.

Up next: One of the most silent deal-breakers - failing to manage compliance.

Mistake #3: Underestimating the compliance burden

In theory, a great offer should speak for itself.

In public procurement, that’s not how it works.

A marketing agency in Croatia submitted what they believed was their best-ever proposal: tailored case studies, smart pricing, and even custom design. But they missed one thing, a signed declaration form buried on page 46 of the tender document.

The buyer didn’t even open the rest of their bid. It was rejected automatically.

This is where many SMEs trip up. They assume that public tenders work like private sales, where a strong pitch and a handshake go a long way. But in public procurement, compliance is non-negotiable.

If one form is missing, one signature is skipped, or one requirement isn’t met exactly as requested, your bid might never be reviewed… no matter how good it is.

Fix it: Before writing your offer, extract all mandatory documents and submission rules into a checklist. Track file formats, naming conventions, declaration forms, and upload instructions. Double-check everything.

The most painful losses aren’t from bad offers; they’re from good ones that never made it past the first gate.

Next, let’s tackle a mistake that drains time and energy from even the best teams: chasing everything.

Mistake #4: Chasing every tender instead of choosing wisely

There’s a certain panic that sets in when SMEs discover public tenders. Suddenly, every new opportunity feels urgent. Every contract could be the one. So they apply to all of them, just in case.

But here’s what often happens:

• The team burns out.
• The quality of responses drops.
• And one rejection turns into five, then ten.

One consultancy in Slovenia applied for 22 tenders in a single year. They didn’t win a single one. When they reviewed their submissions, they realised the problem wasn’t the bids — it was the fit. Most of the tenders were outside their core focus, too large in scope, or had eligibility conditions they hadn’t truly met.

In public procurement, more is not better. Relevance is what matters.

Fix it: Qualify tenders like you’d qualify leads. Check the technical fit, the size of the contract, the buyer’s track record, and the evaluation method. If something feels off, it probably is. Fewer bids, better prepared, almost always beats scattergun tendering.

Next, let’s look at one final mistake, one that costs SMEs long before the tender is even published.

Mistake #5: Waiting until the tender is published to get involved

A small architecture studio in northern Spain noticed a big urban redevelopment project being discussed in the local news. They kept an eye out for the tender and three months later, it was published. By the time they downloaded the documents, half the decisions were already made.

The scope was fixed.

The timelines were tight.

And the requirements? Clearly written for someone else.

Too many SMEs enter the process too late, only reacting once the tender is live. But public procurement often starts long before that, in:

• market consultations
• PINs (Prior Information Notices)
• and RFIs (Requests for Information).

This early stage is where large suppliers build influence and where SMEs rarely show up.

Fix it: Don’t wait for the PDF to drop. Track the buyers you want to work with. Monitor pre-market activity. Engage when feedback is invited. Even if you can’t shape the final scope, showing up early builds recognition and readiness.

Let’s close this out with a practical takeaway and a shift in mindset.

Public procurement isn’t a gamble, it’s a skill

SMEs often treat public procurement as something unpredictable. A high-effort, low-success-rate system. And when they lose, they chalk it up to “we’re too small” or “we can’t compete on price.”

But in reality, success in public tendering isn’t about size. It’s about understanding the system.

Once you stop guessing and start approaching tenders strategically (choosing the right opportunities, managing compliance properly, and focusing on value, not just price) everything changes.

Yes, public procurement is demanding. But it’s also transparent, rule-based, and full of untapped potential for SMEs who are ready to play the long game.

The good news? These mistakes are fixable. And the companies that learn fastest are often the ones that win first.