According to the federation, meaningful integration of SMEs and micro-enterprises in public procurement is not only an issue of equality but also a key factor for sustainable development, employment, and the empowerment of local communities across the EU.
The EBC emphasizes that complexity, disparities among member states, and disproportionate requirements place a heavy burden on small businesses. It recommends mandatory simplification of procedures, avoidance of requests for documents already held by authorities, digitalization that provides real benefits to businesses, and significant revision or limitation of the ESPD, which often increases rather than reduces bureaucracy.
Additionally, the federation calls for enhanced oversight by the European Commission and the creation of digital national platforms providing comprehensive and user-friendly access to all public projects.
Mandatory Division of Public Contracts into Lots
The inconsistent application of project division into smaller “lots” remains a major barrier for small businesses. EBC advocates making this practice mandatory, with justification required whenever it is not applied. It also supports the development of sector-specific lots to allow projects to be implemented by firms with specialized skills and encourages the formation of consortia of small companies without joint liability.
Ensuring a Minimum Share of Direct SME Participation
EBC proposes binding targets for the participation of small and micro-enterprises—at least 30% of the value of public contracts, excluding subcontracting. It also recommends mandatory annual publication of SME participation data to ensure transparency and allow for evaluation.
Subcontracting Framework that Protects SMEs
EBC highlights issues linked to excessively long subcontracting chains, including social dumping, unfair competition, poor project quality, and underpaid contractors. It recommends maintaining primary responsibility with the main contractor, prohibiting purely financial subcontracting, applying strict performance criteria, and ensuring full transparency of subcontractors for every project.
Strengthening Capacities of Public Officials
The lack of technical training among many public employees leads to poorly designed tenders, incorrect assessment of abnormally low bids, and limited access for small firms. EBC proposes extensive training, Commission-issued good practice guides, and national help desks to support local authorities and small contractors.
Environmental and Social Sustainability Criteria Adapted to SMEs
The introduction of green and social criteria is necessary but must not exclude small businesses. EBC emphasizes that local sourcing, minimal environmental impact, employment of local labor, and investments in safety and training should be recognized as essential elements of sustainability.
Balancing Quality and Price
An excessive focus on the lowest price leads to poor-quality projects, unfair competition, and degradation of professional and labor standards. EBC calls for clear guidelines to identify and reject abnormally low bids, funding to enhance the technical capacity of contracting authorities, and simplified evaluation criteria to allow SMEs to compete without external consultants.
Greater Flexibility During Crises
Recent crises (COVID-19, energy crisis, war in Ukraine) have highlighted the need for flexible contracts. EBC recommends mechanisms for immediate price adjustments, mandatory force majeure clauses, extension of deadlines, suspension of penalties, and EU-level mechanisms to ensure material supply during periods of instability.
Timely Payments to SMEs
Payment delays are a major issue for small businesses, especially in long subcontracting chains. EBC calls for the maintenance and expansion of immediate payment mechanisms for subcontractors, mandatory reporting by member states on compliance, advance payments to start projects, and penalties for contractors who systematically delay payments.
