SMEs in Public Procurement

32. Slovak Republic

32.1. SMEs in the national economy

SMEs dominate the Slovak economy, accounting for 99.9% of the total number of business entities. They provide employment in the business economy – nearly three-quarters (73.8%) of the active labour force – and account for more than half (53.6%) of the added value created in 2017. Micro-enterprises employing less than 10 employees make up 96.9% of small and medium-sized enterprises. More than three-quarters of small and medium-sized enterprises are active in sectors such as business services, trade, construction and industry (Slovak Business Agency, 2018[1]).

In terms of sectoral structure, over one-quarter (25.2%, 142 906) of active SMEs performed their main activities in business services (section SK NACE1 K to N). Their share was slightly lower – 21.2% (or 120 178) – in the trade sector, followed by the construction sector (16.7%) and the industry sector (13.3%) (see Figure ‎32.1).

Figure ‎32.1. Sectoral structure of SMEs in the Slovak Republic, 2017

Source: (Slovak Business Agency, 2018[1]).

32.2. National policy framework to support SMEs in public procurement

In transposing the EU directive on public procurement of 2014, the Slovak Republic has embedded certain measures into their public procurement system that can facilitate SME access.

By splitting contracts into small lots, the focus area is more open to SME access to public resources. Other potential benefits of contract splitting are support of local employment, and promotion of a competitive environment; thus it can help other entrepreneurs participate in public procurement and reduce dependence on one supplier. Pursuant the Section 28 pt. 1 of the Public Procurement Act, the contracting authority dealing with such contracts above the threshold limit is not obliged to split the contract into small parts; pursuant Section 28 pt. 2 of Act, however, (with the exception of concessions) if the authority does not do so, they have a legal obligation to justify that decision in the contract notice.

Working groups on green public procurement and public procurement for innovation have taken SMEs into consideration when preparing documentations and manuals.

32.3. Implementation mechanisms

The Public Procurement Office of the Slovak Republic organises workshops and training for contracting authorities. One of the topics they cover is facilitating SME access to public procurement, and contracting authorities are instructed to split contracts into smaller lots when possible. It is also a topic of discussion for the Coordination Committee for Cooperation in Public Procurement, which includes all managing authorities involved in the European Structural and Investment Funds in Slovakia.

32.4. Monitoring performance

The Public Procurement Office monitors performance in the annual statistics of public procurement procedures. In 2017 saw the success in public procurement procedure of 2 094 economic operators from Slovakia and from abroad. Of all these successful economic operators, the share for SMEs was 88.9% and that for bigger enterprises 11.1%.

Table ‎32.1. Share of public procurement procedures awarded to SMEs

	Volume of contracts awarded		Number of contracts awarded
	Amount (EUR mil)	Share (%)	Number	Share (%)
SMEs	1 744.969	43.6	1 861	88.9
Large enterprises	2 259.829	56.4	233	11.1
Total	4 004.798	100	2 094	100

Source: Country response to the 2017 OECD survey on strategic use of public procurement to support SMEs.

Reference

[1] Slovak Business Agency (2018), Small and Medium-sized Enterprises in Numbers, 2017, http://www.sbagency.sk/sites/default/files/msp_v_cislach_v_roku_2017_infograf.pdf.

Note

← 1.  Statistical classification of economic activities in the European Community.