This article illustrates how the proactivity/innovativeness dimension of entrepreneurial orientation (EO) influences how small and medium-sized enterprises (SMEs) search for information on public sector tender opportunities and their subsequent bidding activity. From an analysis of the contemporary literature and our findings, we demonstrate how successful SME participation in public procurement can be encouraged and increased.

Small and medium enterprises (SMEs) have been found to be under-represented in the awarding of public sector procurement contracts. Currently, very little is known about the strategic and behavioral aspects associated with SMEsʼ participation in public sector procurement. To take a step in filling the gap, we used a conceptual construct known as market orientation (MO). The construct comprises a firmʼs orientation in gathering information on competitors and customers, and using the information to gain competitive advantage. This research found that MO has a positive effect on how active SMEs are in searching information on available requests for tenders and how actively they participate in bidding contests. This work strongly suggests that MO should be taken into account when designing procurement contracts, and MO should be fostered among SMEs.

This paper examines entry barriers to involvement in public procurement of small and medium-sized enterprises and the role of training in dismantling those barriers. We find that firms' perceptions of barriers are of five main types. Regression analysis shows that a lack of ongoing training is associated with SMEs' perceptions of resource constraints and practical skills that hinder their participation in public procurement. We also observe a positive connection between a positive attitude toward training and SMEs' participation rates in public procurement. As a managerial implication, the value of training should be appraised at the firm level, and organizing training and providing information concerning public procurement could be a recommended policy to improve the SME participation rate in public procurement.