PUBLIC PROCUREMENT - Lexnet

More key results:
Some 78% of the companies supplying the public sector in Denmark are SMEs with less than
100 employees.
Companies supplying the Danish public sector are more inclined to also supply the public
sector abroad than typical export-oriented companies.
Access to information on EU-tenders is primarily gained through personal contacts and local
agents rather than through official channels, i.e. the Official Journal.
Few companies are inclined to only participate in EU-tenders – the majority also bid for national
and local tenders below the threshold values.
The key procurement markets for Danish companies are the bordering countries – especially
Germany, Sweden and Norway. However, Danish companies are engaged in most European
countries.
Some 60% of Danish companies supply the public sector abroad through local agents, and
some 38% have direct sales to public authorities.
On average, Danish companies that are active in this field participate in less than 10 EUtenders
annually and actually win about half of those tenders.
All in all, the survey brings forward some very optimistic messages. Firstly, many companies are
optimistic in terms of increased engagements with EU-tenders abroad. Secondly, supplying the
public sector abroad is not a perspective reserved for larger companies – SMEs are active and
able to match international competition.
A long term strategy towards SMEs in the field of public procurement must, however, be based
on a solid understanding of the barriers and problems that SMEs meet abroad. The study of
problems and barriers has divided the businesses into two segments: those businesses that are active
in exporting to the public sector abroad, and those who are not active in this field.
Barriers for businesses with no experiences in public procurement abroad
The report concludes that EU-procurement abroad is relevant to a key segment of exporting companies.
In other words, participating in this field of business is not relevant to many Danish companies.
This is either due to the fact that the nature of their products are, to a lesser extent, relevant
for the public sector, or the fact that the companies organising their exports through local
agents or subsidiary.
However, the companies that are potential suppliers to the public sector abroad point at three
main types of barriers as the background of not addressing these markets:
Commercial barriers: Companies being of the opinion that the “efforts invested in EUprocurement
participation would not bear comparison with the final results”
Psychological barriers: Many smaller companies look upon themselves as being too small to
participate in EU-procurement. Furthermore, many companies are of the opinion that successful
EU-procurement is based on having international subsidiaries.
Barriers related to export strategies: Many companies are content staying only in the Danish
procurement market or are lacking open and more aggressive export strategies.
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