Abstract
Supporting micro and small enterprises through public policies presents an in-depth impact assessment of Brazil’s preferential public procurement policy and its effectiveness in expanding market access for micro and small enterprises (MSEs). Drawing on four empirical studies conducted by the Institute of Applied Economic Research (IPEA) in collaboration with the ILO, the publication evaluates key policy instruments, including set-aside programmes, simplified tax regimes, extended compliance deadlines and preferential bidding mechanisms. The findings show that preferential procurement policies have significantly increased MSE participation and contract awards, particularly for younger firms, while also improving firm survival rates. At the same time, the analysis highlights important trade-offs, including reduced competition and higher procurement costs under certain policy designs. By combining rigorous impact evaluation methods with rich administrative data, the report offers evidence-based insights for policymakers seeking to strengthen MSE development, promote formalization and foster inclusive economic growth through public procurement.