Mahatenders or any other state tenders can be an excellent opportunity for small and medium-sized businesses (SMEs) to expand their business and boost revenue. However, due to the presence of large players already in the game, many SMEs are hesitant to participate in the online tender filling process of Eproc Rajasthan or any other state tender portal. As major firms already have established ties and vast resources, competing with SMEs does get a little difficult. This trend may result in a loss of competitive advantage as well as a lack of possibilities for innovation and variety in government contracts.
The government is aware of the problem and has taken steps to encourage SME participation in e-procurement tenders. However, these efforts have not been sufficient to persuade many SMEs to enter the market. Small and medium-sized enterprises (SMEs) frequently lack the information and competence required to manage the procurement process, which can also be a barrier. Third-party online tender portals such as BidAssist are trying to bridge the gap by ensuring SMEs are able to apply to Mahatenders or government tenders easily by providing them assistance and expertise.
What are the main reasons why SMEs struggle to get government contracts?
Winning government tender is a huge accomplishment for small firms. However, there are various reasons why government tender bidding is challenging for SMEs:
- The first and most obvious cause is a lack of awareness of government tender specifications and bidding experience. These companies may lack the information and abilities needed to make a winning bid, resulting in a weak proposal that falls short of the government’s expectations. By signing up on BidAssist and taking the plan as per your need, you can know about the recent tender of Mahatenders and get the required expertise from the BidAssist.
- The second factor is a lack of effective financial preparation. SMEs frequently submit bids that are cheaper than the estimated cost of the project, resulting in a financial loss.
- The third issue is a shortage of resources, such as labour, equipment, and technology, which might result in an inability to achieve the project’s needs.
- Fourth, the lack of reputation and reliability of SMEs may cause a little skepticism among government agencies about the company’s long-term viability.
- Finally, SMEs are frequently unable to furnish guarantees or bonds, which are required on Eproc Rajasthan or other government procurement portals. Without these securities, SMEs are seen as high-risk suppliers, and their bids are disqualified.
Why it is the right time for MSME to start tendering?
India’s MSME Procurement Landscape has changed drastically over the years. Let’s look into it:
Public Procurement Policy: In recent years, there have been numerous notable changes in India’s MSME procurement sector. These improvements have been significantly influenced by the government’s emphasis on fostering MSMEs’ growth and incorporation into the mainstream economy. The introduction of the Public Procurement Policy for MSMEs, which requires government agencies and public sector firms to purchase at least 25% of their total yearly purchases from MSMEs, has been one of the most significant reforms. This strategy has been critical in levelling the playing field between MSMEs and larger firms in the online tender filing process of Eproc Rajasthan.
Increase use of Technology in the form of GeM: Another significant change has been the increased use of technology in the procurement process. To facilitate e-procurement, reduce corruption, and promote transparency, e-procurement tender portals such as Government e-Marketplace (GeM) have been developed. This has not only made it easier for MSMEs to engage in Mahatenders, but it has also made it easier for them to manage the procurement process by decreasing paperwork and allowing for convenient transaction tracking.
Introduction to credit schemes for MSMEs: Furthermore, the government has launched a number of initiatives to provide financial assistance and support to MSMEs. These include the Credit Guarantee Fund Scheme for Micro and Small Businesses, which provides MSMEs with collateral-free credit, and the Prime Minister’s Employment Generation Programme, which aims to create self-employment opportunities and inject money into local economies by establishing micro-enterprises in the non-farm sector.
As an MSME, how should I get started?
Before starting to apply for government tender bidding on Eproc Rajasthan portal, small business owners must first determine whether it is worthwhile to invest their time and money. To make an informed selection, SME owners should consider the following points:
Evaluation: To begin, ensure that the government tender is intended for your SME and that its criteria and requirements are appropriate for your company. Then, sort and select the tenders that are appropriate to your knowledge, resources, and capabilities. While some tenders are available to all firms, some may require specialized certifications or major businesses. So, before you commit any resources to the tender process, be sure your company is eligible to participate. Take assistance from the BidAssist for more expertise on how to apply for Mahatenders.
Calculation: Next, determine the average tender value of the contract for which you wish to bid and confirm that it is consistent with your budget and pricing plan. Consider the cost of raw materials, labour, overhead, and other expenses, as well as the possible revenue. Consider your SMEs financial capacity and whether the investment in contract tender bidding corresponds with your business goal.
Competition: In addition, understand the market demand and competition for the tender, and assess your prospects of receiving the contract. If the competition is too fierce or the prospective profit margins are too low, it may be better to spend your resources on other business ventures.
Collaboration: Collaborating with another MSME to meet certain government contract eligibility standards can help you land a lucrative government project.
Cost Calculation: Finally, determine the cost of creating the proposal based on the specifications of the government tender document, including the time, effort, and resources required for documentation, compliance, and compliance. Check that your expenses are within your budget and that you can present the proposal on time. This will assist you in determining whether the expense of producing the proposal is justified by the possible profits from the contract.
You can make an informed choice about whether a government procurement or Mahatenders is worth your SMEs time and money if you follow these checklist items. Remember that securing a contract is about more than just revenue; it is also about your company’s long-term growth, reputation, and sustainability. If you want to find the best tender for your company without any headaches, BidAssist can help you apply on Eproc Rajasthan. It is an e-procurement tender portal with a team of professionals that will interact with you and assist you in finding the best project based on your company’s size, turnover, and kind. They will assist you not only in keeping track of the eligibility requirements but also in the online tender filling procedure.