Research on the bargaining power of SMEs

HÉTFA Research Institute made a research on behalf of the Hungarian Competition Authority to reveal the factors that shape the bargaining power of small and medium-sized enterprises.

The research examined factors influencing the market position and the bargaining power of Hungarian small and medium-sized enterprises in the food and tourism industry. The analysis was mainly based on interviews with owners, managers and relevant experts of SMEs.

Our research reveals that the bargaining power of enterprises is mostly based on their size and on the uniqueness of their products and services. The study suggests that bargains between enterprises are not only about the price but also about the quality and flexibility of services. The characteristics of business agreements differ significantly across industries and markets. Although technological advances (mainly Internet platforms) greatly modify the process of agreements, personal factors have a strong influence on the nature and contents on the terms of business in almost every case.

The entire study (in Hungarian) is available here.