CEO's Blog -

Why Belgium needs the spirit of the Small Business Act

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When I co-founded my first startup, I wasn’t seeking protection or privilege. I was looking for a fair shot. A chance to demonstrate that innovation doesn't solely originate from established giants but often from small teams with big ideas.

Years later, I’m still surrounded by those teams – builders, makers, dreamers. And through my work at Miles Ahead, a Venture Studio helping first-time founders of deep tech & AI startups grow faster, I see how much potential is bubbling under the surface in Belgium. And yet that potential doesn’t always find the pathways to connect with the right opportunities.

The barriers startups face in public procurement

While large companies have entire teams dedicated to dealing with public tenders, smaller businesses are often left navigating a maze with no map.

They struggle to access the right information, lose precious time trying to work through complex procedures, and are faced with contracts that are far beyond their operational scope. Tight deadlines, disproportionate qualification requirements, and costly certification demands only add to the challenge. And even if they manage to comply with every rule, long payment terms and limited chances of success make it feel like the odds are stacked against them.

Public procurement remains a complex playing field – especially for smaller players.

The result? Many promising companies don’t even try. That’s not just a missed opportunity for them. It could be a loss for innovation, agility, and long-term competitiveness in the public sector.

Frank Hamerlinck: "With the Small Business Act for Europe, the principles are there – we just need to put them to work."

Frameworks exist

In the US, the Small Business Act ensures that a fixed percentage of public contracts go to small and emerging businesses. It’s not charity but smart policy. It creates competition, drives innovation, and fuels economic resilience.

And the US isn’t alone. Countries like the UK, Japan, and South Korea have also introduced binding legislation to strengthen SME participation in public procurement. From reserved contracts to simplified procedures and unbundled tenders, they actively remove barriers for smaller players.

Europe has its own version – the Small Business Act for Europe – introduced in 2008. While not legally binding, it sets out principles to support SMEs, emphasizing the ‘Think Small First’ approach. However, the implementation varies across member states, and in Belgium, there’s still room to strengthen its impact. Turning the principles into binding practice with clear accountability remains work in progress.

Giving innovation a local edge

Across Europe, there’s a paradox. We take pride in fostering local innovation, but, when it comes to significant technology decisions, public institutions often turn to large international providers.

I don’t mean to undermine the value of such collaborations, which can be important and effective, but it raises a broader question: are we making the most of every opportunity to involve European and Belgian startups in public innovation?

In today’s complex geopolitical landscape, this also prompts another crucial reflection: How can we ensure that essential technologies are not only developed but also owned and governed within Europe? Investing in homegrown tech solutions is more vital than ever to bolster our digital sovereignty and resilience. Estonia offers a compelling example. With its X-Road platform – built and maintained locally – it created a secure, scalable digital backbone for public services. It proves that putting trust in domestic innovation isn’t just possible – it can lead to world-class solutions.

Belgium is clearly aware of this opportunity. Encouragingly, the new federal coalition agreement includes measures to improve SME access, such as breaking up large contracts, prioritizing quality over price, simplifying procedures, and shortening payment terms. There's also a clear ambition: 80% SME participation in public tenders, with 60% among successful bidders by the end of this term.

These are meaningful steps – and they reflect a growing will to bring local innovators to the table.

From principles to practice

I’m thus not calling for another policy, but I’m calling for action. The principles are there. We just need to put them to work. Imagine what could happen if a significant portion of public digital budgets were spent on local tech talent. That’s not idealism. That’s long-term thinking.

I believed in small teams with big ideas back then and I still do. Now is the moment to open more doors for them. And it starts with giving them a seat at the table.