Public tenders still show a very low presence of startups. The numbers confirm this limited involvement: only about 29 % of startups in the European Union have attempted to access public contracts — yet those that do achieve an award rate of 91 %. In France, for example, only 17 % of startups’ revenues come from the public sector.
This situation is less due to failures in the proposals and more to an early decision by the companies themselves: many startups choose not to bid at all, because of the formal requirements, time investment, and resources needed in the process.
Fragmented processes and complex bureaucracy
Within the EU, more than 250,000 public authorities allocate around €2 trillion per year (about 14–15 % of GDP) to public procurement. Despite this scale, the majority of relevant tenders are published on national or regional portals that are difficult to access. Additionally, tender specifications often require very extensive technical documentation, with rigid formats where there is no room for error — preparing them can consume hundreds of hours, a cost many startups cannot or do not want to bear.
Bias toward established companies
Startups, by definition, have limited operating history. Many do not even participate in public tenders because of the high financial and operational demands, as they often compete against far more established firms.
The 2023 report by the European Court of Auditors shows a growing number of tenders with a single bidder over the last decade. Today, the overall competition level has decreased across the EU. In fact, 2023 recorded the highest share of single‑bidder awards in the last ten years, and around 20 member states still exceed a 20 % threshold in such procedures. This trend reveals that public administrations often prefer suppliers with proven track records and prior experience in similar projects.
Differences between countries and regions
The structure of public procurement markets varies significantly across EU countries and even within regions. Some states manage to limit single‑bidder procedures to 10–18 %, in contrast to countries like Spain where figures range between 26–34 %. At the local level, disparities may be even greater, reflecting divergent procurement models and varying degrees of transparency and openness.
Ultimately, the low participation of startups in public tenders stems from a combination of interrelated factors. The high initial investment (in time, human and financial resources) acts as a filter before even submitting a bid. Added to this is the slowness of award procedures, which in some cases can extend decisions for years, a situation that may render proposals designed months earlier obsolete.
Moreover, tender requirements tend to favor firms with established track records, liquidity and proven solvency, making it difficult for less experienced players to compete. And the fragmentation of procurement markets, with dispersed national and local platforms and low centralized visibility, prevents many companies from easily identifying or accessing opportunities, further limiting participation.
At Sammy Free we have the experience to support companies, from small startups to larger firms, in obtaining their guarantees to successfully bid in public tenders, both nationally and internationally, offering clarity and facilitating dialogue with public administrations. Our expertise helps companies submit proposals with greater technical and financial strength.
