Winning a public sector contract has been notoriously difficult for small businesses. Poor advertising and the bundling of contracts together, combined with high costs and red tape, make it harder for small firms to compete.
Our research shows our members do more business with the NHS, local councils and education institutions, than with central government agencies and departments. Our findings also show when local authorities spend money with small firms, the local economy benefits by an average of fifty-eight per cent.
Action FSB have taken
We’ve repeatedly called for the Government to open up public procurement for small firms.
We’re calling for buyers across the public sector to break up large contracts and create more work opportunities for small firms.
We want a third of all public sector contracts awarded to small businesses. To achieve this, the Government should re-think the current approach of grouping contracts together, presuming it will lead to efficiencies. We believe local authorities should also increase the number of contracts awarded to small, local firms. Our research shows as a result they spend more and employ more, in the local economy.