The Efficiency of Applying Preferential Regimes for Small-Sized Businesses in Public Procurement

Abstract

This study examines the efficiency of preferential procurement regimes for small-sized businesses (SBs) in Russia, using the example of assessing the results of increased procurement standards. The results of statistical and econometric analysis show a rather moderate increase in SB participation in procurement after increasing the standard. At the same time, the overall volume of purchases from SBs remains significantly lower than the standard. It also turns out that savings on purchases from SBs are greater than on other purchases, and this effect persists after increasing the standard, benefiting the state. In this context, it is necessary to strengthen control over the implementation of procurement standards for SBs and to expand the use of best practices in procurement procedures.

Keywords

• public procurement
• government purchases
• small-sized business
• preferential treatment
• transparency
• competition