Three-quarters of SMEs 'not bidding for government contracts'

Three-quarters of small- to medium-sized businesses (SMEs) rarely or never bid for government work, according to a recent survey by three leading industry bodies.

The report, published by the British Private Equity and Venture Capital Association (BVCA), the Federation of Small Businesses (FSB) and the Confederation of British Industry (CBI), urged the government to ensure a greater proportion of public sector contracts are awarded to SMEs.

John Wright, FSB national chairman, said that opening up government contracts to SMEs would boost the economy. "Small businesses offer great value to communities and by using them, money is kept within the local community," he said.

"Small businesses should be made aware of the practical steps they need to take to improve their bids; without government support they are put at a disadvantage."

The report found that three-quarters of the 500 SMEs who took part in the survey felt there was a lack of responsiveness and too much formality in the procurement process, while over half said the tendering process and timescale require too many resources to respond effectively.

Professor Russel Griggs, chairman of the CBI SME council, said: "This survey reveals that small and growing businesses need to be given fair access to winning these contracts by removing barriers in the procurement process."

The study comes as printers are backing PrintWeek's petition to ensure easier access to public sector contracts among SMEs.

More than 200 have now voiced their support as the pressure grows on the government to reduce subscription fees to tenders website supply2.gov.uk and reduce the paperwork involved in the tender process.

Get your voice heard, sign up to the PrintWeek petition.