Public Procurement and SME Inclusion: An Empirical Analysis of the Stationery Supply Sector

Abstract

Public procurement has increasingly been recognised as a strategic policy instrument for promoting the growth of small and medium enterprises (SMEs), particularly in developing economies. However, despite policy support in Zambia, SME participation in public procurement remains limited. This study examines the role of public procurement in enhancing SME participation, with specific focus on the office stationery sector in Lusaka. The study was motivated by the persistent gap between procurement policy intentions and actual SME inclusion in government contracts. The aim of the study was to evaluate how public procurement influences SME participation. The specific objectives were to assess the level of SME participation, identify key barriers and enablers, and propose strategies to improve engagement. Guided by a pragmatic philosophical approach, the study employed a sequential explanatory mixed-methods design. Data were collected from 90 SME respondents using structured questionnaires and from 11 key informants through semi-structured interviews in Lusaka District. Quantitative data were analysed using descriptive and inferential statistics, including regression analysis, while qualitative data were analysed thematically. The findings indicate that SME participation in public procurement remains low, largely due to financial constraints, limited access to procurement information, and procedural complexities. However, procurement policy frameworks and financial support mechanisms were found to significantly enhance participation. The study concludes that while public procurement has the potential to promote SMEs, its effectiveness is constrained by both institutional inefficiencies and firm-level capacity limitations. Addressing these challenges requires integrated policy reforms and targeted capacity-building initiatives.