2504 International Journal of Criminology and Sociology, 2020, 9, 2504-2509 E-ISSN: 1929-4409/20 © 2020 Lifescience Global Risks of Small and Medium-Sized Businesses Attracting to Government and Municipal Procurement and Economic Growth A.I. Khayrullova 1,* , N.M. Sabitova 2 , A.R. Khafizova 3 and V. I. Nasyrova 3 1 Kazan Federal University, 18 Kremlyovskaya str., Kazan, 420008, Russia 2 Department of Financial Markets and Financial Institutions, Institute of Management, Economics and Finance, Kazan Federal University, 2, Russia 3 Department of Economic Security and Taxation, Institute of Management, Economics and Finance Kazan Federal University, Russia Abstract: One of the strategic goals in the Russian Federation is to relieve social tension by increasing the number of people employed in the segment of small and medium enterprises (hereinafter - SMEs) up to 25 million people by 2024. In order to stimulate the development of this segment, the Government of the Russian Federation sets the task of expanding the access for SMEs to the procurement system. That’s why the analysis of the existing mechanism for attracting SMEs to procurement is of interest. The primary purpose of the study is to investigate the peculiarities of SME involvement in procurement within the framework of two main laws operating in the sphere of procurement activity and problems arising in the procurement’s organization and economic growth. The practice of procurement activity is accompanied by the emergence of risks that affect the procurement result. These risks are inherent both to customers and suppliers of procurement activities. In the article risks are classified by stages of procurement activity. In particular, risks of poor-quality performance of the contract arise long before the stage of its conclusion. In the conclusion, recommendations are made which can be directed to solving the issues of SMEs access to procurement. Keywords: State and municipal procurements, customers and suppliers, small businesses, risks, fraudulent suppliers. INTRODUCTION The procurement system is aimed at solving the conflict of participants’ interests of procurement activities. On the one hand, this system allows the customer to reduce the cost of products and promotes transparency in procurement and optimal use of the budget. On the other hand, it provides preferences to certain categories of potential suppliers. However, such preferences should not contribute to the dependency sentiment of potential suppliers. The study of the foreign practice of the SMEs participation in procurement was given attention by Sigatova, and co- workers (Sigatova 2018). The need and difficulty of SMEs involving in the procurement system is increasingly attracting researchers, in particular the work of Harland was reviewed (Harland et al., 2019). Bahaddad and his co- workers (2018), Saarela, (Saarela, et al., 2018). A group of authors Gafurova, and his colleagues studied the issues of SME support through the procurement system, systemized data on the dynamics and structure of procurement in terms of small business participation (Gafurova 2016). *Address correspondence to this author at the Kazan Federal University, 18 Kremlyovskaya str., Kazan, 420008, Russia; Tel: 8-9172-71-85-90; E-mail: akumarkurra@gmail.com In their studies, Sabitova N.M., Khayrullova A.I. (2015), Karen, T. (2018) note that it is necessary to use the state regulation instruments: budget subsidies, lower tax rates, expand access to procurement for the SMEs development. According to Karen, T., the greatest effect is possible by increasing the volume of public procurement. Reis, P.R.C., Cabral, S. studied the impact of public procurement programs on contract pricing (Reis, and Cabral, 2015.). To reflect the particularities of SME participation in the procurement system, we will consider the stages of procurement: procurement planning, contract execution, and evaluation of procurement results. At the stage of procurement planning the customer identifies the need for a product; the budget is determined; the preferred method of procurement; market analysis is carried out; the necessary information about the procurement is published; procurement procedure is ensured, including the acceptance of bids; evaluation of bids is carried out and the winner is determined; the draft contract is sent to the supplier for approval with its subsequent signing. At this stage the following risks are likely: professional training; large volume of documentation; cases of corruption; lack of motivation of participants and asymmetry of information. At the stage of a contract execution the quality of production is controlled; the course of plan execution,