SMEs won more than half of public procurement contracts in October - YouControl
Kyiv • UNN
In October 2023, more than 60,000 SMEs in Ukraine won public procurement contracts worth more than UAH 20 billion, accounting for 71% of the total value of contracts, with construction companies receiving the largest share.
More than 60 thousand small and medium-sized enterprises in Ukraine won public procurement in October 2023. The companies that could be accurately classified received orders for more than UAH 20 billion, which is 71 percent of the total amount of contracts. This is reported by YouControl, according to UNN .
Details
YouControl and the Open Data Association analyzed 296 thousand procurements and their winners. Based on this analysis, a ranking of 25 winners of public procurement among small and medium-sized businesses was compiled by the amount of contracts.
For 16 out of 25 companies, the amount of contracts won in a month is higher than their entire annual net income in 2022.
This gives rise to a number of assumptions. That they actively use subcontractors after the conclusion of contracts. That these companies are only nominally small or medium-sized, but in fact are part of large financial and industrial groups. Or that the economic capacity of these companies does not meet the requirements stated in the procurement. The latter case raises the question of the competence of the tender commissions that approved the winners
As noted, among the 19.1 thousand winning companies from the small and medium-sized business category that could be accurately classified, 3089 medium-sized enterprises (16% of the total) were identified, which received orders worth UAH 10.3 billion (36% of all contracts included in the sample). 5813 companies from the small business category accounted for 30% and won orders for a comparable amount to the average - UAH 10 billion (35% of the total amount of contracts).
Microenterprises with up to 10 employees and up to EUR 2 million in revenue accounted for 53% of the winning companies and won 29% of orders worth UAH 8.4 billion. If we add the majority of individual entrepreneurs out of the 41,000 undefined winners, it turns out that microbusinesses have become the largest subgroup of small and medium-sized businesses in terms of the number of contracts. Although it was slightly inferior to small and medium-sized enterprises in terms of the value of these contracts.
The top 25 companies in terms of the total amount of contracts won in public procurement in October mainly include small and medium-sized construction companies engaged in the construction of roads and highways, residential and non-residential premises, and electricity supply. Such companies received the most money under procurement contracts - 45.6% of the total amount, which amounted to UAH 13.1 billion.
The largest number of winners was registered in Kyiv - 4141 (22%) and in the regions of cities with a population of over one million: Dnipropetrovska oblast (7.3%), Lvivska oblast (7.1%). Kyiv, Kharkiv, Odesa, and Poltava regions also have a significant share in the total number of winners.
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As it turns out, small and medium-sized businesses are quite actively involved in the public procurement process as suppliers of goods and services to budget spending units. There are objective reasons why SMEs are more active in some regions than in others, and certain industries, such as construction, transportation, or pharmaceuticals, are trending in terms of the number and volume of contacts.
