Market functionality and SME's

Ensuring a healthy market and promoting competition are important features of financial responsibility. In its competitive tendering processes, Hansel takes the operational prerequisites of SME’s into consideration. The company keeps track of the percentage of SME’s of all contract suppliers. The degree to which framework agreement sales are split between SME’s and large corporations is also monitored. The European Commission’s definition of SME’s was used.3

Because Hansel’s customers often have large procurement volumes, it can sometimes be difficult for small companies to respond to the orders. In public procurements, companies are allowed to team up, so that they are able to produce the required volumes.

In 2013, 46 per cent of Hansel’s suppliers were SME’s. This figure includes all suppliers who have a direct contractual relationship with Hansel; subcontractors are not accounted for. In 2012, the classification criteria for associations and for municipality and city-owned companies were revised; these are now included in "Other". Classification has similarly been revised for some companies that are part of international groups, if these companies were previously classified as SME’s due to the small scale of operations in Finland.

SME’s accounted for 10.2 per cent of total central procurement in 2013. In practice this means that procurement from SME’s under Hansel’s agreements exceeded €70 million

SME's as contract suppliers

  2013 2012 2011 2010 2009
Amount of SME suppliers 173 161 263 342 233
Percentage of SME's of all suppliers 46 46 64 71 64
Central procurement from SME's, M€ 70,8 115,0 176,2 203,3 200,6
Share of central procurement from SME's, % 10,2 16,7 26,1 36,7 37,5

The total procurement from SME’s through framework agreements has fallen in recent years. This is particularly due to the Electricity framework agreement, which became the company’s largest agreement (calculated in euros) in 2011, when the government decided to centralise its electricity acquisitions through Hansel. No power suppliers are SME’s.

Regional aspects are taken into account in Hansel’s framework agreements. The framework agreement for Occupational Health Care services is divided into 61 geographical areas, with the aim, among other things, of supporting the availability of local social and health care services. Regional aspects were also incorporated in the Domestic Accommodation and Conference Services framework agreement, which was divided into 70 regions in order to respond to the customers’ accommodation needs in the best possible way. Regional aspects are taken into account in about 10 per cent of the framework agreements.


3Number of personnel under 250, with maximum net sales of €50 million or maximum balance sheet total of €43 million. Companies must also fulfil the ‘independence criterion’, which means that no large companies own more than 25% of the SME in question.