Participation of Small and Medium-Sized Businesses in Public Procurement as a Factor of Sustainable Development of the Volga Federal Okrug

Abstract

Despite the recognized role of state and municipal procurement as an important instrument for supporting small and medium-sized businesses (SMEs), a persistent gap remains between declared support measures and their practical implementation. The analysis of research literature revealed key barriers limiting SME participation in public and municipal procurement, as well as the limited attention given to regional differences in SME engagement. To assess SME involvement in the public procurement system, the study proposes a set of specialized indicators, including the index of SME coverage of public procurement, the procurement activity coefficient of unique SME suppliers, and an adapted Gini coefficient for identifying the uneven distribution of procurement value among SMEs. These indicators were tested using procurement data from regions of the Volga Federal Okrug. An examination of 721,151 contracts from 2022–2024 revealed considerable regional disparities: industrially developed regions show hyperconcentration of procurement among a small group of suppliers, while agricultural regions demonstrate low procurement activity. The findings indicate that regional protectionism has a dual effect—stimulating SME participation in economically weaker areas while simultaneously restricting competition in industrial centres. The study proposes differentiated regional policy measures for improving SME access to public procurement. Future research may involve expanding the geographical scope and developing tailored models of SME support that take regional and sectoral characteristics into account.