Transparency and participation of Small and Medium Enterprises in Public Procurement in Iringa Municipality

Abstract

Small and medium enterprises (SMEs) play a crucial role in the global economy, yet in Tanzania, they face significant challenges in accessing public procurement opportunities despite a preferential public procurement framework. Among the challenges, transparency has been given scant attention. There is a gap in knowledge on the influence of transparency on SMEs' participation in public procurement. This study aims to assess the influence of transparency in the procurement process on promoting SME participation. A cross-sectional research design with 136 respondents was employed. Data collection included questionnaires, key informant interviews, and documentary reviews. Both descriptive and inferential statistics, including Binary Logistic Regression, were used for data analysis. The study revealed that transparency in procurement practices significantly influences SME participation. Simplified communication, clear evaluation criteria, adequate tender advertisement, timely tender evaluation, and tender competitiveness and fairness enhance transparency and increase SME participation (p < 0.05). Based on these findings, it is recommended that authorities enhance communication channels, establish clear evaluation criteria, and ensure timely and adequate tender advertisements. Timely tender evaluations and a fair, competitive tendering environment should be promoted. Emphasizing compliance with the public procurement legal framework, encouraging SME creativity and innovation, and providing capacity-building initiatives are crucial. Regular monitoring and evaluation of procurement practices are also recommended to improve transparency and SME participation.