Back in 2015, the government announced that it planned to increase procurement spend with SMEs.
The Cabinet Office announced that, by 2020, it wants ┬г1 of every ┬г3 spent on government contracts to be allocated to SME suppliers, whether directly or as part of the supply chain.
Nearly three years later it has been suggested that the government may not meet the original target. According to a Federation of Small Businesses (FSB) study from last year, only 20% of local government contracts are currently going to SMEs.
For the government to even attempt to reach its 33% target, more SME businesses must invest their time into finding government tenders.
SMEs must get involved
According to the Federation of Small Businesses (FSB), the proportion of SMEs тАЬexpressing an interest in competing for a public sector contract fell from 14 to 10 per cent between 2014 and 2017тАЭ*. This is one key reason why the government is not reaching its target.
To win government contracts, small and medium-sized businesses must take part in the procurement process. SMEs may not be convinced just yet; however, there are many benefits of working with government тАУ one of which is reliable payment.
When the Government announced its 33% plan, it was also announced that all buyers working in the supply chain must comply with 30-day payment terms. If a public body does miss payment deadlines, then it must publish an annual overdue payment report.
Find Government Tenders
Many SMEs are not getting involved in procurement due to lack of time and resources. Searching for government tenders can be time-consuming, but it doesnтАЩt have to be. Using our Tender Alerts service, our users can customise their profile so that they only receive information about tenders that are relevant to their business.
We offer our customers more tender opportunities and awards notices than any other service in Europe and with over 30 years of experience in public procurement, our team can help you find a win more government tender opportunities.
Book a demo today and see first hand how easy it is to find new business opportunities.
