Economy would be ‘aided’ by giving more public contracts to SMEs
The government has been urged to take steps to make sure that a greater proportion of public sector contracts are awarded to smaller businesses.
The call has come from the Federation of Small Businesses (FSB) which said that such a move would benefit the wider business community, the economy and local communities, not least because of the value for money that many small firms can offer.
A report published jointly by the FSB, the British Private Equity and Venture Capital Association (BVCA) and the CBI revealed that, in a survey of over 500 firms, almost three-quarters of SMEs rarely or never bid for government work.
The research found that small businesses still face a number of barriers when it comes to picking up public contracts.
Over three quarters of SMEs said they believe it’s difficult to find out about government opportunities.
More than a half of respondents felt that the tendering process and the timescales involved require too many resources in order to respond effectively.
While nearly three out four SMEs thought that there is a lack of responsiveness and too much formality in the procurement process.
John Wright, the FSB’s national chairman, said: “Small businesses offer great value to communities and by using them, money is kept within the local economy. However, small businesses face significant barriers and are not always given a fair chance to compete against larger companies.”
Mr Wright added: “Small businesses should be made aware of the practical steps they need to take to improve their bids. But without government support, small businesses are put at a disadvantage. We need to see actions implemented so we can ensure that SMEs are represented fairly when tendering for government contracts.”