Large v. small

Small businesses are still struggling to win public sector contracts despite the government's efforts to make it easier, research finds. The latest figures from a survey of 2,700 companies by the FSB reveal that 40% of small operators believe the tendering process for public sector contracts is too complex, while 37% think they are sidelined by public officials who believe bigger must be better. The findings come despite the government's launch of its Contracts Finder website designed to make it easier for small firms to find and bid for public sector work.

Although one in seven companies had bid for a public sector contract in the last year, 41% failed to secure any business from any of the bids they had submitted. Of those that had won contracts, only a quarter say they had found the Contracts Finder website useful, with twice that number relying on personal contacts and referrals. Two fifths of small businesses still want a simplified tendering process, with 38 per cent believing that public sector bosses should evaluate tenders based on experience and ability rather than on the size and turnover of bidding firms.

APA is calling for all parts of the public sector to agree to the range of measures to support small firms detailed in the Procurement Pledge published by the government last week. APA Director General Gareth Osborne says, “There is some evidence that government is trying to break the large business strong-hold on public sector contracts but clearly more must be done. Without a true culture change across the public sector the initiatives will have little impact.”

APA