PUBLIC PROCUREMENT AND THE PARTICIPATION OF MICRO AND SMALL ENTERPRISES IN BIDDING PROCESSES: PRINCIPLES, MODALITIES, AND ECONOMIC INCLUSION

Abstract

This chapter addresses public procurement and the participation of micro and small enterprises (MSEs) in Brazilian bidding processes, highlighting the legal principles, bidding modalities, and legal mechanisms for economic inclusion provided for in the national legal system. Based on the 1988 Federal Constitution, Law No. 8,666/1993, Law No. 10,520/2002, and Complementary Law No. 123/2006, the text discusses bidding as an administrative instrument aimed at selecting the most advantageous proposal for the Public Administration, observing principles such as legality, impartiality, morality, publicity, equality, administrative probity, adherence to the bidding document, and objective judgment. The study shows that public procurement plays a strategic role in economic and regional development, especially when used as a mechanism to strengthen micro and small enterprises. This chapter highlights the importance of electronic bidding, which increases competitiveness, reduces geographical barriers, and provides greater transparency, speed, and efficiency to public procurement. It also analyzes the characteristics of micro and small enterprises (MSEs), their relevance to job and income generation in Brazil, and the challenges they face in accessing the government market, such as financial, bureaucratic, and managerial limitations. Finally, it discusses the preferential treatment afforded to MSEs by Brazilian legislation, especially the reservation of bids up to R$ 80,000.00 for companies of this size, highlighting the role of public procurement policies as an instrument for economic inclusion, local development, and business strengthening.