SMEs in Public Procurement

25. Latvia

25.1. SMEs in the national economy

SMEs in Latvia play an important role in the “non-financial business economy”. They contribute to almost 80% of total employment and more than 70% of the value added.

Table ‎25.1. Basic figures of the non-financial business economy of Latvia, 2015

	Number of enterprises		Number of persons employed		Value added
	Number	Share	Number	Share	(in billion EUR)	Share
Total	103 040	100.0%	613 854	100.0%	10.5	100.0%
SMEs	102 842	99.8%	484 689	79.0%	7.6	72.1%
Micro	96 147	91.4%	193 548	31.5%	2.5	23.3%
Small	7 276	7.1%	147 929	24.1%	2.3	22.3%
Medium-sized	1 419	1.4%	143 212	23.3%	2.8	26.5%
Large	198	0.2%	129 165	21.0%	2.9	27.9%

Note: These are estimates for 2015 produced by DIW Econ, based on 2008-13 figures from the Structural Business Statistics Database (Eurostat). The data cover the non-financial business economy, which includes industry, construction, trade, and services (NACE Rev. 2 sections B to J, L, M and N), but not enterprises in agriculture, forestry or fisheries, or largely non-market service sectors such as education and health. The advantage of using Eurostat data is that the statistics are harmonised and comparable across countries. The disadvantage is that for some countries the data may be different from those published by national authorities.

Source: (European Commission, 2017[1]).

25.2. National policy framework to support SMEs in public procurement

Levelling the public procurement playing field for SMEs is reflected in principles promoted in the public procurement regulations – such as free competition of suppliers and equal and fair treatment. Supporting SMEs, and in particular facilitating their access to public procurement as one of the prime focal points of European Union public policy, is also integrated into Latvia’s legal framework. Furthermore, Latvia devotes efforts to reducing administrative burden for SMEs, especially through wider use of e-procurement.

25.3. Implementation mechanisms

The Procurement Monitoring Bureau provides guidance to contracting authorities and suppliers. It offers methodological assistance and consultations, and organises training for contracting authorities and suppliers of goods, services and works. Workshops organised by the Bureau also cover the use of e-procurement – such as use of the e-certificate system.