Micro firms ‘need help’ on government contracts

The Federation of Small Businesses (FSB) has called for guarantees that the UK’s smallest businesses stand a chance of winning business from public sector organisations.

The facts:

The Glover Review – commissioned by the government after the 2008 Budget – is investigating ways to make government contracts more accessible to small businesses. Ministers say 30 per cent of work should go to SMEs and the review’s object is to find out if this is a realistic figure.

But the FSB says the review should focus on the smallest – or micro – businesses with fewer than 10 staff. It published a set of proposals to encourage mini-firms to bid for and win contracts.

They include a statutory three week window for responses to government tenders, local authorities to hold briefing meetings with local micro-businesses, and forcing small businesses to fill out a pre-qualifying questionnaire only once.

They said:

“The FSB believes that with a target in place, efforts can be implemented to achieving the goal, rather than discussing whether there should be one,” said Clive Davenport, FSB trade and industry chairman.

“Small businesses offer great value to communities and by using small businesses, money is kept in the local economy.

“We are pleased that the government is investigating small businesses and procurement. What we would like to see now, is targets to be implemented to ensure small businesses win public sector contracts and reduce the barriers small businesses face.”

We say:

There are plenty of ways the government can encourage small businesses to bid for contracts. Breaking down large jobs into several smaller ones would help, as would streamlining the process for applying for each contract, and providing more information to new businesses.

It’s just a shame that while one department is limproving life for small businesses, another is seeking to make it harder for them.

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By News Desk  on   Aug 12,2008

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Keywords

FSB    government    contracts    politics    new business    small business   

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