“Public procurement? That’s for the big boys.” It's a refrain we hear every week at TenderWolf. And it's not true. SMEs now win 71% of all public contracts in Europe in terms of number, and their share in value is steadily increasing. Both the European Commission and the Belgian legislature have been actively working to lower barriers in recent years. If you don't compete as an SME, you're missing out on opportunities.

The figures: a market of considerable size

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

From a European perspective, SMEs win 55% of the total contract value and no less than 71% of contracts by number. This is a significant improvement compared to ten years ago, when their share in value was below 30%. This is the result of a conscious 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 is not charity. A diverse supplier base is in the interest of every purchaser:

Innovation. SMEs are closer to the market and often quicker to adopt new technologies. A city looking for a smart parking solution will benefit from an agile scale-up, not necessarily a multinational.

Competition. The more suppliers compete, the more competitive the prices and the higher the quality. Contracts that are consistently awarded to the same three major players risk becoming compartmentalized.

Local economy. Assigning work to local SMEs keeps jobs and tax revenues in the region. That is a concrete argument for municipal authorities.

Resilience. The COVID crisis demonstrated that dependence on a limited number of large suppliers makes us vulnerable. A diverse supplier landscape offers greater flexibility.

The barriers are lower than you think

Plots: large assignments divided into feasible sections

Article 58 of the 2016 Public Procurement Act requires contracting authorities to justify why a contract worth more than €143,000 is not divided into lots. In practice, more and more contracts are being split up. For example, the renovation of a school is divided into 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 bid on the entire contract.

Mandatory advance payments since 2024

The law of December 22, 2023 requires contracting authorities to pay advances to SMEs that win a contract. Micro-enterprises receive at least 20%, small enterprises 10%, and medium-sized enterprises 5% of the contract value—up to a maximum of €225,000. This is a game changer for cash flow, especially for contracts where you have to invest before you can invoice.

The UEA: less paperwork when enrolling

The Uniform European Procurement Document (UEA, or ESPD in English) is a self-declaration that you submit when you register. You only need to provide the full supporting documents (annual accounts, attestations, certificates) after the contract has been awarded. This saves dozens of hours per tender — exactly the kind of administrative burden that deters SMEs.

The revenue cap: maximum 2× the order value

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

Combinations and subcontracting

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

Combination (temporary trading partnership). Two or more companies register together as a single bidder. Your references, personnel, and financial capacity are combined.

Reliance on third parties. You rely on the capacity of another company (e.g., its references or turnover) to meet the selection requirements, without submitting a joint bid.

Subcontracting. You register yourself but outsource part of the work. Please note: subcontractors often need to have their own accreditation for certain types of work.

Dynamic Acquisition System (DAS)

The DAS is an open system where you can qualify at any time—unlike a framework agreement, where the door closes after selection. Governments are increasingly using the DAS for IT services, consultancy, and supplies. This is 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 broadly. Define exactly which assignments suit you: in which sector, what size, and with what type of client. Use your CPV codes and accreditation categories as a guide.

2. Compile your basic documents

Ensure you always have an up-to-date file ready with your registration with the CBE (Crossroads Bank for Enterprises), your annual accounts for the last three years, relevant certifications (ISO, VCA, recognition as a contractor), and your insurance policies. The time you invest in this beforehand will pay off twice over with every quote.

3. Follow instructions systematically

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

4. Learn by observing

Don't sign up for the first assignment right away. First, analyze a dozen specifications in your sector. Look at how they are structured, what selection and award criteria are used, and what price levels are common. That knowledge will make your first real bid much 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 contract you win is a reference for the next one, and every tender you lose provides feedback through the mandatory debriefing.

Common objections — and why they are incorrect

"It takes too much time." The first time, yes. But after three registrations, you'll have templates, standard texts, and a working process. The time investment per quote will quickly decrease.

"The procedures are too complex." The basic procedures (open procedure, simplified negotiated procedure) are clearly structured. The UEA drastically simplifies the administration. And with a tool like TenderWolf, you don't have to search for yourself.

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

“I don't have any references.” Start with assignments below the threshold, where the requirements are more flexible. Or work with an experienced party through a combination or subcontracting arrangement. This way, you can build up references without taking unnecessary risks.

The European wind in your sails

The direction is clear: both Europe and Belgium are strengthening the position of SMEs in public procurement. The revision of the European procurement directives—currently under consultation—focuses explicitly 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 fees.

Any SME that starts working on government contracts today is entering a market that is actively moving towards it.

TenderWolf for SMEs

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Public procurement for SMEs: more opportunities than you think