The article deals with the relation of electronic government (further – e.government) and electronic business (further – e.business)in public procurement. A special focus is on the theory analysis of e.government and e.business, on the legal regulation of publicprocurement in the European Union (further – the EU). The authors of the article analyse public procurement paying attention to theLithuanian membership experience in the EU. They also state the arising problems and difficulties in public procurement. The stateof small and medium-sized business (further – SMB) in the process of implementing public procurement is discussed, too.