Characteristics Of private markets and accessibility of small and medium enterprises to public procurement markets: Pharmaceuticals in egypt

Abstract

The current paper explores the effect of private market characteristics on the access of small and medium enterprises (SMEs) to public markets in some sectors. Using survey data of small and medium enterprises in the pharmaceutical sector in Egypt, we confirmed this effect. We found that regulations of drugs pricing and registration in the private market constrained the capacity of those firms to compete in the public markets. However, some other factors play it the other way. The policy implications of these findings indicate that governments need to account for private markets characteristics when designing support packages for smaller enterprises in public procurement markets.

Explaining sme participation and success in public procurement using a capability-based model of tendering

“…Across the EU Single Market, the most recent assessment put SMEs' share of above-threshold contracts 1 at 29% -again only half that of their value-added contribution; although their share of belowthreshold contracts was estimated to be in the region of 58-59% (PwC, 2014). Several other studies find small firms to be underrepresented in public procurement (Flynn et al, 2013;MacManus, 1991) and less inclined to seek information on public contracts or bid for them (Abdellatif & Zaky, 2015).…”

“…Karjalainen & Kemppainen (2008) confirmed that the stock of legal, administrative and IT resources at a firm's disposal was linked to their likelihood to tender. Taking an altogether different perspective, Abdellatif & Zaky (2015) showed that perceptions around transparency and corruption can act as significant predictors of the percentage of public contracts awarded to firms. Thus, the field is moving towards a better understanding of the predictors of SME involvement in public procurement.…”

“…Foregoing research indicates that older firms have higher levels of participation (Pickernell et al, 2013;Reijonen, Tammi & Saastamoinen, 2014). Moreover, firms have been shown to regard experience as conducive to securing contracts (Abdellatif & Zaky, 2015). Age is measured as the number of years a firm has been in existence.…”

Pharmaceutical policies and regulations of oral antiviral drugs for treatment of hepatitis C in Egypt—case study

“…The Egyptian government usually procures medicines for use within the public sector at relatively low prices compared to private sector prices. Procurement of pharmaceutical products in the public sector follows a Tender Drug List (TDL) system [ 44 , 45 ].…”