Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June GOBIERNO DE CHILE MINISTERIO DE HACIENDA

2 Entrepreneurs in the Chilean Public Procurement System ”Here we are providers at the same conditions “ “We compete by quality and fastness" “Today business are in a short time and very attractive in term of revenues” "ChileCompra enable us to compete with big dealers”

3 Problems / Challenges Asymmetric information and high transactions cost. Public Procurement Market Reform – Year 2003 Strategic aims To consolidate transparency and wide access to the Public Procurement System. To contribute to the saving and efficiency of the Public Spending and improve the quality of the supply management of the Public Institutions. To benefit the commerce and the Electronic Government.

Public Procurement Market Reform – New System Training and Support

Bids System ChileCompra Express Catalogue Electronic Procurement Platform - ChileCompra

6 Synthesis 2006: Aims: Transparency + Efficiency + Electronic Commerce. 900 Public Services: Agencies, Municipalities, Schools, Universities, Hospitals, Armed Forces Companies / 98% SMEs visitors per month / different of Purchase Orders per year USD 3,500 millions ( ~ 3% chilean GDP). Saving - 5% in prices / USD 60 millions per year. 35% SME participation. Indicators (2006) Market Share per company size (2006) Public Procurement Market - ChileCompra Chilean Economy Medium Big Small Micro

Access + Access to information and tools Access to business Opportunities / Rules How can we achieve these SME market share?

8 GOBIERNO DE CHILE MINISTERIO DE HACIENDA DIRECCIÓN DE COMPRAS Y CONTRATACIÓN PÚBLICA SME provide sustainability, since small enterprises assure great competition and social control. Better procurement solutions. SME have the flexibility and adaptability to attend properly complex requirements. Advantages high SME market share

Jacqueline Sandoval: ChileCompra’s Provider Evolution: 2003: USD 1000 of Sales per Month / bankruptcy 2006: USD of Sales per Month / 10 workers

10 Is possible to combine efficiency and transparency. Technology is a great ally to make advances toward both goals at the same time. Technology helps but it is not an end by itself. Transformations occur with a good diagnosis, good plans and policies. ChileCompra is not a technological project, is a public policy supported by technology. Innovate is to put into work ideas which produced added value. A good plan is void if it isn’t properly implemented. Marketing and training were fundamentals in ChileCompra implementation. Conclusion