For years small businesses have complained about problems selling to the public sector, feeling the odds are stacked against them by public sector organisations demanding ever more from suppliers at an ever lower cost. Despite a number of changes which were intended to make it easier for small businesses to bid for contracts, progress is slow. Scotland’s micro businesses (93% of all Scottish firms) receive only 7 per cent of public contracts (by value), a figure that has barely changed over the last ten years.
While most parts of the public sector say supporting SMEs is a priority, there’s an absence of specific objectives, action plans, monitoring or evidence from public sector organisations to back this up. And a number of obstacles in the system, such as clunky systems and disproportionately costly conditions, continue to make it harder for small businesses to bid. Thus, we don’t believe a level-playing field exists yet for local firms seeking to win public contracts. We believe that Scotland’s public sector can help small businesses win more contracts, whilst also delivering additional benefits for local economies from our public spending, without spending more on our goods and services. This requires clearer leadership and prioritisation from the public sector and action from the Scottish Government to provide incentives to make change happen.