ABSTRACT
This study investigates the role of public procurement policies in supporting and managing Small and Medium-sized Enterprises (SMEs) in Edo State, Nigeria. SMEs are pivotal to economic development, contributing to job creation, poverty alleviation, and innovation. However, they face challenges such as limited access to finance, inadequate infrastructure, and regulatory bottlenecks. Public procurement, representing a significant portion of government expenditure, offers a strategic avenue for SME development by providing stable market access, fostering competition, and promoting local economic growth. The study examines the interplay between public procurement policies and SME development, assessing the barriers SMEs face in accessing government contracts and evaluating the legislative and institutional frameworks governing procurement in Edo State. Drawing on empirical studies and theoretical frameworks like the Resource-Based View and Transaction Cost Economics, the research highlights the critical role of transparent and efficient procurement management in enhancing SME participation. Findings reveal that while procurement policies have potential benefits, challenges such as bureaucratic complexities, corruption, and delayed payments hinder SME engagement. Legislative tools like Nigeria's Public Procurement Act (2007) and Edo State’s Public Procurement Law (2012) aim to ensure fairness and local content promotion but require better implementation to align with SME needs. The study recommends reforms, including simplified processes, capacity building, and inclusive procurement practices, to unlock the full potential of SMEs in contributing to Edo State's economic growth.
