Determinant of Small and Medium Enterprises (SMEs) Low Participation in Public Procurement in Lagos, Nigeria

Abstract

It is an established fact that Small and Medium Enterprises (SMEs) are crucial to economic development of any nation. SMEs participation in every sphere of economic activities including public procurement is one of the ways the sector can promote economic development of the country. However, SMEs sometimes are usually reluctant to sell to government. This study identified and classified into eight themes factors responsible for the low participation of SMEs in public procurement in Lagos State, Nigeria. Data were collected with questionnaires from 193 SMEs Chief executives. Data generated were analyzed using ranking method. The study revealed that perceived lack of transparency in public procurement proceedings, disproportionate eligibility criteria and burdensome nature of public procurement are the major reasons SMEs are reluctant to participate in public procurement in Lagos, Nigeria. It was concluded that transparency is vital in public procurement for SMEs to adequately participate in the process. The study recommended that in order to boost SMEs participation in public procurement transparent procurement management must be guaranteed.

Keywords: Determinant; SMEs; Public procurement; Contract; Eligibility criteria.