Small companies increase their share of the public procurement market
Small companies have increased their share of winning bids on EU tenders in Denmark, reveals a new analysis created by the Danish Competition and Consumer Authority. The analysis reveals that during the period from 2015 to 2017 small companies increased their share of the EU tender market by 30 %. However, the 30 % increase can be misleading, as it disregards instances of multiple smaller companies.
The small companies are disregarded in the research through its methodology, which only accommodates for one small company when a consortium or another form of collaboration achieve the winning bid. Thus, the de facto increase might well be above 30 %, as it is not unusual for several smaller firms to be part of consortiums or other forms of collaboration. Additionally, the Danish Competition and Consumer Authority also notes in their analysis that small companies have a higher share of smaller contracts. Yet, of EU tenders above 200 mil. DKK, the smaller companies share remain a respectable 13 %.
The analysis reveals a booming market for small companies within EU tenders, while also highlighting small companies with the right capacity can achieve larger contracts on upwards of 200 mil. DKK. During the analysis the Danish Competition and Consumer Authority defines small companies as having below 50 employees, equal to the definition employed by EU.
The Danish Competition and Consumer Authority analysis thereby reveals that it is not the size of a company, but rather its will and knowledge of EU-tenders, that determine their success within EU tenders in Denmark.