Small and medium sized enterprises (SMES) accessibility to public procurement: SMES entity perspective in Ghana

Abstract

his study aimed at examining the competitiveness of SMEs when they are being assisted particularly having an access to public procurement contract. Descriptive and exploratory designs were used. Convenience sampling technique was applied to select 91 respondents. The findings of the study revealed that on the competitiveness of SMEs in Ghanaian economy with access to public contract, SMEs have the ability to be flexible in their operations and their adaptability to changes either accidental or unexpected. It was also revealed that SMEs serve as a force for economic diversification and can act as the main engines for growth and development. The study also revealed that SMEs have the advantages in the form of innovation, employment, spatial benefits and the potential for decentralized supply opportunities. On issue of preferential treatments accorded SMEs in Ghana based on the Public Procurement Act 663, the study revealed that procurement officers/entities are not required to give SMEs concerns an equitable opportunity to compete for contracts and it does not provide any specific laws or articles relating to SMEs. The margins of preference found in the Public Procurement Act 663 is designed to give preference to local suppliers and contractors (irrespective of the nationality of the proprietor) competing with foreign suppliers and contractors not specifically for SMEs in Ghana. It was clear that there are no small business set-aside programs provided for SMEs in the Public Procurement Act 663 and its does not have any exemption from bid and performance security. It is recommended that the procurement policy and the Act 663 should be reformed to reflect preferential treatment for all the SMEs in Ghana to enhance their competitiveness in the economy.