“Public procurement? That’s for the big players.” It’s a refrain we hear weekly at TenderWolf. And it’s wrong. SMEs in Europe now win 71% of all public contracts by number, and the share in value is steadily rising. Both the European Commission and the Belgian legislator have actively worked in recent years to lower barriers. If you’re not competing as an SME, you’re missing opportunities.

The Numbers: A Market of Substance

The Belgian government spends approximately €50 billion annually through public procurement — from road maintenance and IT projects to office supplies and consultancy. That’s about 14% of GDP, comparable to the European average.

At the European level, SMEs win 55% of total contract value and as many as 71% of contracts by number. That’s a substantial improvement compared to ten years ago, when the share in value was below 30%. The result of deliberate European policy: Directive 2014/24/EU contains specific SME-friendly provisions, and Belgium goes even further with the law of December 22, 2023.

Why the Government Needs SMEs

It’s not charity. A diverse supplier base is in every contracting authority’s interest:

Innovation. SMEs are closer to the market and often faster in adopting new technologies. A city looking for a smart parking solution is well served by an agile scale-up, not necessarily by a multinational.

Competition. The more suppliers compete, the sharper the prices and the higher the quality. Contracts that structurally go to the same three large players risk entrenchment.

Local economy. Contracts to local SMEs keep employment and tax revenues in the region. For municipal councils, that’s a concrete argument.

Resilience. The COVID crisis showed that dependence on a limited number of large suppliers makes you vulnerable. A diverse supplier landscape offers more flexibility.

The Barriers Are Lower Than You Think

Lots: Large Contracts in Manageable Pieces

Article 58 of the Public Procurement Act 2016 requires contracting authorities to justify why a contract above €143,000 is NOT divided into lots. In practice, more and more contracts are being split up. A school renovation, for example, is tendered in separate lots for structural work, electricity, HVAC, and finishing. As an SME, you can bid on the lot that matches your specialization without having to offer the whole package.

Mandatory Advance Payments Since 2024

The law of December 22, 2023 requires contracting authorities to pay advance payments to SMEs that win a contract. The percentages depend on company size:

Micro-enterprises: at least 20% of contract value
Small enterprises: at least 10%, maximum 20%
Medium-sized enterprises: at least 5%, maximum 20%

The advance payment is capped at €225,000 and applies to contracts placed through procedures other than negotiated procedure without prior publication.

The ESPD: Less Paperwork at Submission

The European Single Procurement Document (ESPD) is a self-declaration that you submit with your bid. You only need to provide full supporting documents (annual accounts, certificates) after award. This saves dozens of hours per tender — exactly the kind of administrative burden that discourages SMEs.

The Turnover Cap: Maximum 2× Contract Value

One of the least known but most important provisions: Directive 2014/24/EU (Article 58) states that the minimum annual turnover a contracting authority may require as a selection criterion may not exceed twice the estimated contract value. A €200,000 contract? Then the authority cannot demand millions in turnover. This makes contracts accessible to many more SMEs.

Consortiums and Subcontracting

You don’t have to do it alone. The law provides three mechanisms:

Consortium (temporary partnership). Two or more companies bid together as one bidder. Your references, personnel, and financial capacity are combined.

Reliance on third parties. You rely on another company’s capacity (e.g., their references or turnover) to meet selection requirements without bidding together.

Subcontracting. You bid yourself but outsource part of the work. Note: for works, subcontractors often need their own contractor recognition.

Dynamic Purchasing System (DPS)

The DPS is an open system where you can qualify at any time — unlike a framework agreement, where the door closes after selection. Governments increasingly use DPS for IT services, consultancy, and supplies. Ideal for SMEs: you qualify once and can then compete for any contract within the system.

Five Steps to Get Started

1. Determine Your Sweet Spot

Don’t start too broad. Define exactly which contracts suit you: in which sector, what size, and with which type of client. Use your CPV codes and recognition categories as a guide.

2. Compile Your Basic Documents

Make sure you always have an up-to-date dossier ready with your KBO registration (Crossroads Bank for Enterprises), your annual accounts for the last three years, relevant certifications (ISO, VCA, contractor recognition), and your insurance policies. Time invested here upfront pays off double on every tender.

3. Follow Contracts Systematically

Manually searching e-Procurement and TED is time-consuming, and you’re guaranteed to miss opportunities. With TenderWolf, you set up a search profile based on your CPV codes, region, and contract type. You receive relevant contracts in your inbox daily.

4. Learn by Observing

Don’t immediately bid on the first contract. First analyze ten or so specifications in your sector. Look at how they’re structured, which selection and award criteria are used, and what price levels are typical. That knowledge makes your first real submission many times stronger.

5. Start Small and Build Up

Start with a lot from a larger contract, a contract below the European threshold, or a mini-competition within a framework agreement. Every won contract is a reference for the next, and every lost submission provides feedback through mandatory debriefing.

Common Objections — And Why They Don’t Hold Up

“It costs too much time.” The first time, yes. But after three submissions, you have templates, standard texts, and a working process. The time investment per tender drops quickly.

“The procedures are too complex.” The basic procedures (open procedure, simplified negotiated procedure) are clearly structured. The ESPD drastically simplifies administration. And with a tool like TenderWolf, you don’t have to search yourself.

“Big companies always win.” The figures contradict this. 71% of contracts go to SMEs. And your personal involvement, flexibility, and speed are real assets that a multinational cannot match.

“I have no references.” Start with contracts below the threshold, where requirements are more flexible. Or work with an experienced party through a consortium or subcontracting. This way, you build references without unnecessary risk.

The European Wind in Your Sails

The direction is clear: both Europe and Belgium are strengthening SMEs’ position in public procurement. The revision of the European procurement directives — currently under consultation — explicitly focuses on further simplification and better SME access. The new Public Procurement Data Space (PPDS) will further increase transparency. And Belgium’s law of December 22, 2023 sets a European example with mandatory advance payments and bid compensation.

Those who start with public procurement as an SME today are stepping into a market that is actively moving toward them.

TenderWolf for SMEs

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Public Procurement for SMEs: More Opportunities Than You Think