Why public procurement is interesting for your SME
Why public procurement is interesting for your SME
November 2024 - Public procurement offers entrepreneurs opportunities beyond the traditional market. From small SMEs to larger companies, every type of business can benefit from stable and often lucrative contracts. Here are some reasons why it can be beneficial to win public procurement contracts.
1. Stable and secure source of income
Government contracts offer stability as they are often long-term and well-funded. The government is a reliable client with less chance of default. This means that, as an entrepreneur, you can count on a stable revenue stream, which is essential for the financial planning and growth of your business.
2. New markets and networking opportunities
Winning a government contract can open doors to new sectors or markets that your company would otherwise not have access to. Moreover, working with the government can help you build a network within the public domain, which can increase future opportunities. It can also increase your credibility, as providing services or products to the government can act as a seal of quality.
3. Economies of scale and growth
Public contracts are often large, which means that companies can achieve economies of scale. By selling a larger volume or completing larger projects, companies can make their production processes more efficient and save costs. This can lead to company growth and expansion, both in capacity and expertise.
4. Support for innovation
The government regularly invests in innovative projects and encourages entrepreneurs to come up with new technologies and solutions. By participating in these projects, you as an entrepreneur can experiment and innovate with less risk, as the government often offers grants and support. This can help differentiate your business and strengthen your competitive position.
5. Diversify your customer portfolio
Being dependent on just a few customers can be risky. Working with the government can help diversify your client portfolio, making your business less vulnerable to fluctuations in the private market. This provides a healthy balance between private and public clients, making your business more robust.