The public sector spends £175bn ($270bn, €206) a year on goods and services, but small companies still face “substantial hurdles” that prevent them competing with large companies for the business of central and local government, the NHS and education. This is according to a study for the Treasury chaired by Anne Glover, the former chairman of the British Venture Capital Association. The government has repeatedly tried to increase access to government business for small and medium enterprises and some progress has been made.
An electronic marketplace for public sector contracts is to be developed in a bid to help small and medium companies win a larger share of central and local government business.
The public sector spends £175bn ($270bn, €206) a year on goods and services, but small companies still face “substantial hurdles” that prevent them competing with large companies for the business of central and local government, the NHS and education. This is according to a study for the Treasury chaired by Anne Glover, the former chairman of the British Venture Capital Association. The government has repeatedly tried to increase access to government business for small and medium enterprises and some progress has been made.
But continuing barriers mean SMEs are losing out on business and the government is still missing the opportunities for innovation and better value for money that small companies can provide, the report published on Tuesday said.
Its recommendations, which the government has accepted in full, are that all contracting opportunities for deals above £20,000 across the whole of the public sector should be advertised electronically on a single online portal.
All tender documents should be issued electronically by 2010 and all businesses should be permitted to tender electronically by the same date to reduce the reams of paper companies often have to submit when bidding.
After 2010, paper-only tenders by the public sector should be banned and there should be an “ambition” for all tenders to be electronic by 2012.
Some parts of the public sector are already using such portals.
*source-Financial Times – London,England,UK
