SMEs 'should compete' for government work

Posted on 16 October 2008

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More small and medium-sized enterprises (SMEs) should submit tenders for government contracts, it has been suggested.

According to the Federation of Small Businesses (FSB), firms which can "adapt to change rapidly" are needed to help pull the UK out of economic difficulty, adding that such businesses can also offer the state the best value for money.

The federation was commenting in light of a report published by jointly by the British Private Equity and Venture Capital Association, the Confederation of British Industry and the FSB, which indicated that almost 75 per cent of SMEs rarely or never bid for government work.

FSB national chairman John Wright said small businesses offer "great value" to communities, adding that money was kept in the local economy by using them.

"However, small businesses face significant barriers and are not always given a fair chance to compete against larger companies," he added.

Mr Wright concluded by saying small businesses should be given government support to ensure they are represented fairly when tendering for government contracts.

This week small business expert Liz Barclay told the BBC that SMEs can take a number of steps to ensure they survive a recession.

Business owners were instructed to work out where savings could be made, be efficient with energy, remain calm and maximise productivity.

Category: Contractor News

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