Work detail

Barriers to entry in public procurement: Evidence from the Czech Republic

Author: Bc. Pavel Prucek
Year: 2015 - summer
Leaders: PhDr. Ing. Jiří Skuhrovec PhD.
Consultants:
Work type: Bachelors
Language: English
Pages: 97
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/151552/
Abstract: A core subject of this study is to examine the effect of potential barriers to entry on a
variation in profit margin of public procurement suppliers in electricity and gas sector
in the Czech Republic. Furthermore, the thesis attempts to draw key determinants
affecting the probability of SME to win a public contract. Findings have proven that
Czech public procurement market works quite efficiently because the impact of
barriers to entry on profit margin was not detected. Additionally, SMEs were not
blocked by barriers to entry to compete for public tenders suggesting nondiscriminatory
practices of contracting authorities. Policy recommendation is to use
tools promoting competitive environment such as electronic auctions, which in turn
create a pressure on final prices and shrink profit margins. The success of SMEs in
public tenders relies on institutional characteristics rather than standard procedural
ones. Therefore a promotion of innovative tools such as specific legislative provision
(e.g. set-asides) or workshops carried out for SMEs might represent effective small
business support policy.
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