Issue 1, 2019

Kashin D. V., Shadrina E. V. Efficiency of small and medium enterprises support in the public procurement system of the Russian Federation.

The paper aims to analyse the efficiency of state support for small and medium enterprises provided through the public procurement mechanisms in the Russian Federation. Preferences in public procurement for this category of business are one of the tools for implementing the state policy of small business support. We consider the original database of procurement procedures conducted in accordance with the Federal Law No 44-FL and No223-FL in 40 Russian regions in 2017. Using econometric models, we estimate the level of competition in both procurement procedures conducted for all types of participants and procedures conducted only for SME’s. We also identify and evaluate the determinants affecting rebate of contracting authorities, such as regional characteristics, characteristics of contracts and characteristics of contracting authorities. The results of the study prove that granting preferences for SMEs by conducting special procurement procedures only for SMEs provides a greater access for SMEs to procurement procedures and has a positive effect on the level of competition (the number of applications submitted and admitted to participation) and does not require additional state costs. This study contributes to the academic) discussion about the efficiency of preferences for small and medium enterprises in the public procurement system. Moreover, it proves the efficiency of the existing support measures in the public procurement system in the Russian Federation from the position of contracting authorities (the government). The results of the study can be used by contracting authorities and authorized bodies when planning procurement, as well as by suppliers when determining a strategy of participation in procurement procedures; they can also be applied to adjust public procurement policy. Keywords: small and medium enterprises, public procurement, preferences for small and medium enterprises, the rebate of contracting authorities.

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