Guides / Government contracts for small businesses
Government contracts for small businesses
Public buyers want more small suppliers. EU rules push buyers to split contracts into lots, the UK requires buyers to consider barriers to small businesses, and US federal law reserves many contracts for small businesses. Here is how a small team can turn that into wins.
Reviewed 8 Oct 2026 by the Bidstage team.
Nine practical tips
- Start below the big thresholds. Lower-value contracts on national portals, Contracts Finder or SAM.gov set-asides face fewer, smaller competitors.
- Bid by lot. Choose the lots that match your region and specialism instead of the whole contract.
- Use set-asides and certifications where they exist: in the US, the SBA's small business, 8(a), HUBZone, women-owned and service-disabled veteran-owned programmes.
- Partner or subcontract. Join a consortium or work under a larger prime contractor to build references for public buyers.
- Rely on others' capacity if you miss a selection criterion. EU rules let you rely on a partner's financial or technical capacity, with their commitment in writing.
- Use the ESPD (EU) or the UK central digital platform so you do not resubmit the same company information each time.
- Build a reusable library of case studies, CVs, policies and certificates.
- Take part in market engagement events to meet buyers before the tender.
- Always ask for feedback and use it.
Rules that help small suppliers
| Market | Rule |
|---|---|
| EU | Buyers must consider dividing contracts into lots and explain why not (Article 46, Directive 2014/24/EU). Turnover requirements are generally capped at twice the contract value. |
| UK | Buyers must have regard to barriers facing small and medium-sized enterprises (Procurement Act 2023, section 12). Payment within 30 days flows down supply chains. |
| US federal | Purchases above the micro-purchase threshold ($15,000) up to the simplified acquisition threshold ($350,000) are generally reserved for small businesses when at least two can compete. |
Spend your time on the right tenders
Small teams cannot read every portal. Bidstage reads them for you and ranks open tenders by fit with your business, so the few hours you have go into responses you can win. Plans start with a free look at all open tenders by country and category.
Questions
Do I need to be a certain size to bid?
No minimum size applies in general, but each tender can set selection criteria such as minimum turnover or insurance. Check them first, and consider a consortium if you fall short.
What counts as a small business?
In the EU, an SME has fewer than 250 staff and turnover up to €50 million or a balance sheet up to €43 million. In the US, the SBA sets size standards per NAICS code.