Which acquisition strategy could limit the participation of small businesses?

Group purchasing can limit the participation of small businesses because it typically involves aggregating the purchasing power of multiple entities to negotiate better pricing and contracts with suppliers. This approach often favors larger organizations that can meet the minimum volume requirements set by suppliers, thereby sidelining smaller firms that may not have the necessary purchasing volume. Smaller businesses might struggle to compete for such contracts due to their limited capacity or resources.

In contrast, individual contracts and public bidding processes are generally designed to provide opportunities for a wider range of participants, including small businesses, by not imposing volume constraints. Negotiated contracts can also allow for flexibility and tailored terms that may suit both small and large businesses, fostering inclusivity rather than limiting participation. Therefore, among the given options, group purchasing stands out as a strategy that inherently restricts the involvement of smaller enterprises in the procurement process.