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Quarter of Government’s Procurement Budget Spent on SMEs

Small Business_TaxAgility Accountants LondonThere’s never been a better time to start a small business, with new Government data showing that a quarter of the country’s procurement budget for tax year 2013-14 was spent on small and medium-sized enterprises (SMEs).

Announced in Parliament by Minister for the Cabinet Office Francis Maude, the £11.4 billion spending total, 26.1% of the Government’s procurement budget for that year, represents 10.3% of direct spending on SMEs, and 15.8% of indirect spending.

Contracts Finder

Touched upon in our earlier article on the Small Business, Enterprise and Employment (SBEE) Act, in a bid to remove the barriers to public procurement that small businesses so often face, the recently launched Contracts Finder website from the Government is designed to make it easier for small businesses to land public sector contracts.

Speaking on the new website, Lord Young, Enterprise Adviser to the Prime Minister commented:

Contracts Finder is a world first in terms of scale and ambition. It opens up government business like never before and levels the playing field for SMEs who in the past, didn’t know how to find public sector contracts, let alone bid for them.”

Lord Young’s enthusiasm for Contracts Finder was echoed and elaborated on by Piers Linney, a member of the Government’s SME panel and a former ‘Dragon’ on the popular Dragon’s Den television show:

We know government business has been incredibly complicated and costly to bid for in the past, and that was reflected in the tiny proportion of spend going to SMEs. This new legislation and the new site create a huge opportunity for SME businesses with reduced cash flow risk. They need to educate themselves on their rights under the new legislation and really get under the skin of Contracts Finder to make sure they can seize that opportunity.”

Free to use by all small and medium-sized business owners, Contracts Finder works to show current and prospective SME owners across the UK that not only has there never been a better time to start a small business, but that public sector contracts are both easy to find and easy to bid on; an effort designed to level the playing field between new business owners and large corporations that have been dominant in their sector for decades.

Including both current and future public sector contracts worth over £10,000 (in central Government) and £25,000 in the public sector, the message is clear; small business owners have an equal shot at winning contracts of which they’re qualified to bid on.

Contact an Accountant

Needless to say, if you’ve recently started up in business or you’re planning on doing so soon, you’re going to need to speak with a qualified, experienced accountant to discuss your plans going forward, both with regard to your opening finances and your financial plan.

To speak with such an accountant, and to gain our thoughts on the best use-cases of Contract Finder and other Government legislation that can be of benefit to small business owners, contact us today on 020 7129 1199 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.

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