Despite government promises to make it easier for small businesses to win public sector contracts, it’s plans don’t seem to be working.
The FSB recently surveyed the small business community in the UK and discovered that 37% of SMEs believe that public officials still think larger firms are better.
More than 2,700 members of the FSB were questioned during the course of the research and it transpired that although one in seven SMEs had tendered for a public sector contract over the last 12 months, 41% of them had failed to get any business from their bids.
Of the firms that were successful, 50% said they relied on personal contacts and referrals when it came to searching for contracts, whilst 25% said the government’s Contracts Finder website had proved to be a useful source of information.
SMEs still think the tendering process is too complicated and 38% say the public sector should consider tenders based on ability and experience rather than the size of the competing firms. A similar percentage said the public sector should be actively looking to award contracts to small firms.
John Walker, the FSB’s national chairman, said the government has tried to raise public sector awareness of the value of using entrepreneurs and small businesses but it is evident that more work still needs to be done. Central government is now more inclined to give small businesses a chance, but other public sector organisations also need to undergo a culture change if the government’s initiatives are going to be truly successful.
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Image: Winning Hand by smlp.co.uk
