Support services for SMEs and start-ups, and public procurement (Dimensions 5a and 5b) in the Western Balkans and Turkey

                     Adapt public policy tools to SME needs (Small Business Act Principle 5)                   The idiosyncrasies of SMEs mean they need specific support from public policy tools and government interventions to overcome market imperfections which prevent them from accessing particular markets and developing their skills. Dimension 5 is divided into two parts: Dimension 5a assesses government efforts to encourage the development of business support services for SMEs as an instrument to improve SME competitiveness, while Dimension 5B assesses efforts to adapt public procurement frameworks to make it easier for SMEs to participate on an equal footing, giving them access to the significant opportunities offered by public contracts. Overall, the economies of the Western Balkans and Turkey have become marginally more proactive in both of these areas. A combination of public and donor-funded programmes offer support services for SMEs and start-ups across the region. Nonetheless, more efforts are required to address the needs of specific SME segments, such as start-ups, growth-oriented medium-sized firms or exporters. Services do not gather sufficient feedback from SMEs, and more could be done to develop comprehensive and stringent monitoring and evaluation frameworks. In public procurement, governments have made progress in improving the legislative framework and have started to develop e-procurement systems, making it easier for SMEs to participate in public tenders. However, price is still commonly used as the contract criterion to the detriment of quality considerations. Policy makers should now concentrate on ensuring qualification criteria and financial requirements are proportionate for SMEs and take the next steps towards developing e-procurement so as to take full advantage of the efficiency benefits it offers.      