Small firms losing battle for public sector work

Small firms losing battle for public sector work

Not really a surprise for anyone working with small businesses but the figures from the Federation of Small Businesses confirm that nothing has changed.

  • The ‘Voice of Small Business’ survey panel of FSB members in England reveals 40 per cent of small firms believe the tendering process for public sector contracts is too complex, while 37 per cent think they are sidelined by public officials who believe bigger firms must be better.
  • Although one in seven firms had bid for a public sector contract in the last year, 41 per cent failed to secure any business from any of the bids they had submitted.
  • Of those firms that had won contracts, only a quarter (27%) said they had found the Contracts Finder website useful, with twice that number (55%) relying on personal contacts and referrals.
  • 40 per cent of firms want a simplified tendering process
  • 38 per cent believe the public sector should actively use small businesses or encourage consortia of small and medium sized firms where possible
  • 38 per cent believe public sector bosses should evaluate tenders based on experience and ability rather than on the size and turnover of bidding firms
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