1. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
a r e s e a r c h
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o

2. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o
m o t i v a t i o n s
Why SMEs and Public Procurement?
Y= C + I + G + (X-N)
G = 49% GDP
P= 21% G
P= 10% GDP
SMEs 99,9%
of enterprises
How much are SMEs in Lazio involved in government contracting?
Do SMEs feel th is market as a comp etitive an d a conven ient on e?
Ensuring a large amount of Public contracts to SMEs could
in creas e th e market d yn amis m?
Sh all SMEs b e con s id ered as a h omogen eou s clu ster?
Research questions

3. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
a d o u b l e p e r s p e c t i v e
SMEs EU; 54%;
29%; 58%
SMEs ITA; 49%;
20%; 67%
10%
15%
20%
25%
30%
35%
40%
40% 45% 50% 55% 60%
%Contractsvalueawarded
% Contracts awarded
SMEs EU SMEs ITA
Italian SMEs
don’t catch
47%of contracts value
respect to their share
in the economy
European SMEs
don’t catch
29%of contracts value
respect to their share
in the economy
€772k
Contract
value
80%
employment
€312k
Contract
value
67%
employment
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o

4. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
s o m e f i n d i n g s a t E u r o p e a n l e v e l
0%
10%
20%
30%
40%
50%
60%
70%
80%
0-10 k 10 k-30 k 30 k-100 k 100 k-300 k 300 k-1 M 1 M-5 M >5 M
Portionofsuccessfulbidders
Contract Value
Micro
Small
Medium
SMEs
Large
S u c c e s s a n d
c o n t r a c t v a l u e
Increasing the contract value,
SMEs lose competitiveness
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o

5. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
t h e s u r v e y
From 23rd February to 31st March 2015
4 types of questionnaires
• Currently suppliers 41 questions
• Never Participating 27 questions
• Past suppliers 42 questions
• Participating but never awarded 31 questions
108 respondents
margin of error = 8%
confidence level = 90%
38%
44%
12%
Currently
suppliers
Never
participating
Past
suppliers
Participating
6%
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o

6. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
t h e r e f e r e n c e p o p u l a t i o n a n d t h e s a m p l e
96%
Micro
0,4%
3,4%
Small
Medium
Large
0,1%
83%
Services
6%
11%
Works
Supplies
0,3%
Agri
49%
Micro
15%
36%
Small
Medium
53%
Services
30%
17%
Works
Supplies
Sample
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o

7. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
s a m p l e ’ s s t r u c t u r a l d a t a
S TAT I S T I C A L E V I D E N C E
Revenues are strongly
dependent to the class-size
ANOVA p-value 0,00 Eta Squared: 0,83
€ 482.827
€ 4.322.945
€ 16.418.969
€ 5.914.025
0
20
40
60
80
100
15 17 19 21 23 25 27 29
Employees
Average tenure
Classes size- structural data
Micro Small Medium SME
S TAT I S T I C A L E V I D E N C E
Tenure is moderately
dependent to the class-size
ANOVA p-value 0,00 Eta Squared: 0,31
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o

8. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
s a m p l e & P u b l i c P r o c u r e m e n t
€ 7.532.157
€ 5.362.889
€ 4.296.322
€ 5.914.025
0
10
20
30
40
50
60
15 17 19 21 23 25 27 29
employees
average tenure
Status of participation - structural data
Currently suppliers Never participating Past suppliers SME
2,20%
4,30%
-1,60%
2,61%
-2%
0%
2%
4%
6%
Variation2013/2014
Variationin revenues 2013-2014
Currenlysuppliers Never Participating Pastsuppliers SME
S TAT I S T I C A L E V I D E N C E
Revenues are moderately
dependent to the status of
participation
ANOVA p-value 0,00 Eta Squared: 0,33
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o

9. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
f o c u s o n c u r r e n t s u p p l i e r s o f t h e P . A .
€ 84.030
€ 379.420
€ 509.634
0%
10%
20%
30%
40%
50%
60%
70%
80%
0 2 4 6 8 10 12 14
%RevenuesbyP.contracts
N° of contracts
Currently suppliers
Micro Small Medium
Red Zone
• Higher dependency to
Public Contracts
• Less contracts and value
Green Zone
• Lower dependency to
Public Contracts
• More contracts and value
Micro-suppliers are exposed to turnaround in Public
Procurement expenditure
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o

10. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
s i g n i f i c a n t o p i n i o n s
Micro Medium Suppliers
Never
Participating
Formal requirements
too stringent
Indifferent Seriously hampers
Seriously
hampers
Indifferent Administrative burden Seriously hampers Indifferent
Seriously
hampers
Indifferent
Procedures to obtain licenses
and permits
Excessive request of quality
certifications
Does not hamper Indifferent
Employees’ knowledge Adequate Not adequate
Advantage in supplying the
P.A.
Yes No
We can extend these findings to the population of
SMEs in Lazio
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o

11. University of Rome “Tor Vergata” – School of Economics. M. Sc. Business Administration A.Y. 2014-2015 Andrea Di Schiavi
c o n c l u s i o n s
How much are SMEs in Lazio involved in government
contracting?
62% of the sample participated at least once. Contracting with the P.A. is a strategic decision
Do SMEs feel th is market as a comp etitive an d a conven ient on e?
The opinion changes with the status of participation. Who supplies the P.A. is motivated and
perceives the advantage in doing so. Otherwise it is not advantageous
Ensuring a large amount of Public contracts to SMEs could
increase the market dynamism?
82% of the sample agrees. This could help during period of crisis fostering the competition
and enhancing business opportunities
Shall SMEs be considered as a homogeneous cluster?
No, we have statistical evidences about the relevant differences between
Micro and Medium firms. We should talk about MicroSMEs
P u b l i c P r o c u r e m e n t a n d S M E s i n L a z i o