Why Public Procurement Matters
Public procurement represents a significant opportunity to create social value while delivering good value for citizens. By integrating social and environmental criteria into procurement frameworks, governments can move beyond price-focused decisions and consider the broader impacts of their spending. This approach can:
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Stimulate local business and innovation
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Create meaningful jobs and training opportunities
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Facilitate the reintegration of disadvantaged individuals into the workforce
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Support sustainable local economies
Experiences from outside the EU provide useful lessons. For instance, Scotland introduced an identifier in its Public Procurement system, allowing buyers to easily find third-sector suppliers. This improved visibility has been a game-changer for social enterprises, though it took years of effort to implement.
Strengthening European Procurement Frameworks
Current EU regulations can go further to ensure social enterprises are included in procurement processes. Key steps could include:
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Incorporating social and environmental criteria across all procurement frameworks, with measurable outcomes and reporting requirements.
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Creating reserved markets for social enterprises, particularly those employing a workforce with a certain proportion of disabled or disadvantaged individuals.
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Setting targets for the total amount of public spending directed toward social or environmental impact.
Building Capacity for Social Procurement
Inclusion in public procurement also requires building the capacity of social enterprises. Intermediary organisations can play a crucial role by:
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Providing non-financial support to help SEs manage larger contracts
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Facilitating consortia for joint bids on larger tenders
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Supporting participation through smaller contract lots or staggered tender values
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Advocating for prompt payments to ensure financial sustainability
Ensuring Trust and Impact
Public buyers need confidence that contracted enterprises genuinely deliver positive social and environmental outcomes. A common understanding of ‘impact’ is essential. Trusted verification systems such as Buy Social or People and Planet First labels can strengthen trust between procurement officials, social enterprises, and citizens.
Learning from the Private Sector
While this consultation focuses on public procurement, lessons from B2B social procurement are also valuable. Projects like Buy Social Europe, financed under the Single Market Programme, highlight best practices for engaging businesses in social procurement. Applying these insights to public procurement can inspire innovative approaches and maximize positive impact.
A Call for Action
Euclid Network and our members are committed to supporting the European Commission in revising Public Procurement directives. By promoting social and environmental inclusion, simplifying processes, and building the capacity of social enterprises, public procurement can become a powerful driver for sustainable, inclusive growth – benefiting citizens, communities, and the wider economy.
