Public procurement in the EU is huge. Every year, more than 250,000 authorities spend around €2 trillion, equal to 13–14% of the EU’s GDP. On paper, this should be a massive opportunity for SMEs.

Policy has recognised that too. EU directives have long encouraged SME participation, aiming to level the playing field against bigger suppliers.

But the reality looks different. SMEs remain underrepresented, especially in higher-value contracts. While they may win over half of contracts by number, their share of contract value is far lower — only 29% of awarded value in one major study.

At the same time, competition itself is shrinking. The share of tenders with only one bidder jumped from 23.5% in 2011 to 41.8% in 2021. That means fewer suppliers, less innovation, and fewer chances for SMEs.

The promise was access. The reality still feels like disadvantage.

So, are SMEs still the underdogs in public procurement? Let’s look at the data, the barriers, and what could change.

The promise vs. reality: What policy meant for SMEs

EU procurement law has always emphasised SME participation. Directives encourage contract “lotting” (splitting larger contracts into smaller pieces), lighter documentation, and cross-border access. The goal was clear: give SMEs a fairer chance in a €2 trillion market.

And there has been progress. A European Commission review found that SMEs won about 55–60% of public contracts above EU thresholds by number. That’s close to their share of the economy.

But when you look at the value of those contracts, the picture changes. SMEs secured only 29% of the total value. Large suppliers still dominate the high-value, strategic projects.

So while policies opened the door, SMEs are not competing on equal terms once inside.

And another problem makes this worse: in many cases, SMEs aren’t even showing up, because competition itself is shrinking.

Rising single bidding: A sign of weak competition

One of the clearest signs that SMEs are struggling in procurement is the rise of single-bid tenders.

According to the European Court of Auditors, the share of tenders in the EU that attracted only one bidder jumped from 23.5% in 2011 to 41.8% in 2021.

This trend shows two things:

• Reduced competition: contracts are being awarded without real choice.
• Missed opportunities for SMEs: smaller suppliers either don’t see the tender, or can’t meet the requirements.

When tenders go uncontested, buyers lose the benefits of open competition, like better pricing, more innovation, and diverse suppliers. And SMEs lose chances to participate.

But why aren’t SMEs bidding more often? The answer lies in the barriers they face just to enter the game.

Unequal access to tenders: Barriers that hurt small players

For many SMEs, the problem isn’t ability. It’s access.

Here are some of the barriers that keep smaller suppliers out of tenders:

1. Time costs: With more than 2,000 procurement portals across Europe, SMEs often lack the resources to monitor them all (European Commission). Large firms can assign full teams. SMEs can’t.
2. Complex paperwork: Even with the European Single Procurement Document (ESPD), documentation remains heavy. Missing one form often means automatic rejection.
3. Financial thresholds: Many contracts set minimum turnover or insurance requirements that small firms cannot meet, even if they’re technically capable.
4. Cross-border hurdles: Language barriers, different national rules, and local requirements make it difficult for SMEs to compete outside their home country.

The result: SMEs win in number of contracts, but not in value. Larger players capture the high-value deals, leaving SMEs stuck on the margins.

Let’s look at what the numbers say about this imbalance between volume and value.

Value vs. number: How SMEs lose out in big contracts

On the surface, SME participation looks strong. Across the EU, according to the European Commission, SMEs account for more than half of all awarded contracts by number.

But when you look at the money, the picture changes. A major study found that SMEs captured just 29% of the total contract value awarded above EU thresholds.

This means:

• SMEs are present, but mostly in smaller, lower-value contracts.
• Large suppliers dominate the strategic, high-value projects.
• The playing field remains uneven, even when policies promote SME inclusion.

For SMEs to move beyond being “contract fillers” and into real growth partners, the system needs to do more than just count how many contracts they win.

Some countries and sectors are showing signs of progress. Let’s look at what’s working.

When the system works…

Not all of the picture is negative. In some countries and sectors, SMEs are better represented, showing that change is possible.

• France: Public buyers are required to consider lotting contracts into smaller parts to make them more SME-friendly. This has helped more small firms enter procurement competitions (European Commission).
• United Kingdom: Before Brexit, the UK introduced targets for awarding a set percentage of public contracts to SMEs. This created political and institutional pressure for inclusion.
• Green & social procurement: In areas like catering, IT services, and local works, buyers are increasingly awarding to SMEs because of their flexibility and alignment with sustainability or community goals.

These examples show that rules and buyer behaviour matter. When contracts are designed for access, SMEs do more than just participate, they compete.

But in the meantime, SMEs still need help navigating the fragmented system. That’s where platforms can make a difference.

How platforms like Tendify can level the playing field?

Policy change takes time. But SMEs can’t wait years for the system to become simpler. They need practical solutions today.

That’s where platforms like Tendify come in. Instead of forcing SMEs to search across thousands of portals, Tendify:

• Aggregates tenders from EU, national, and regional sources.
• Uses AI to match tenders with a company’s size, sector, and goals.
• Scores relevance so SMEs know where to focus and when to pass.
• Saves time and reduces admin, allowing small teams to compete like big ones.

This doesn’t replace procurement rules. It makes them work as intended: open competition, equal access, and more SMEs in the game.

If Europe wants to see SMEs thrive in procurement, smarter tools must bridge the gap until policy catches up.

Let’s close with why this shift is overdue and what needs to change next.

Time to rethink procurement: From token SME inclusion to real opportunity

SMEs are the backbone of Europe’s economy. They represent 99 % of all businesses and provide most private-sector jobs. Yet in public procurement, they still play the role of underdog, too often limited to smaller contracts, shut out of big projects, or lost in a fragmented system.

The data is clear: policies alone are not enough. Single bidding is rising, competition is shrinking, and SMEs capture only a fraction of total contract value.

If public procurement is meant to deliver better outcomes for governments, citizens, and the economy, then SMEs must be able to participate fully, not just on paper, but in practice.

That means fewer barriers, smarter systems, and tools that put suppliers first.

Because SMEs don’t need special treatment. They just need a fair chance.

And when they get it, everyone benefits.