An initiative has been unveiled by ministers in a bid to help Small and Medium Businesses secure a larger share of government procurements.
According to Francis Maude, Cabinet Office Minister measures have been put in place to improve the payments process for SMEs, who are often left coping with the problem of late payments. He also stated that subcontracting work would be published by larger companies on a new website, with more measures to be decided by small business leaders and the government during a meeting.
According to Cable, in 2010 SMEs only managed to secure 6.5 percent of the amount spent on Central government’s procurement, even though they were responsible for half the UK economy’s turnover. He said:
“This was clearly mitigating against UK growth and jobs. Failing to create a level playing field for smaller suppliers excluded some of the most competitive and innovative suppliers.”
Cable further added that the government was aware of the requirement to provide entrepreneurial support as growth of the economy is reliant on SMEs. The government recognise that change is urgently needed. He pointed out that change has already been introduced, with the reduction of regulatory and tax barriers and now the hep to secure government procurement. The progress and announcements were welcomed by John Walker, chairman of the Federation of Small Business, who said it was a step towards helping small business gain government contracts.
As changes are implemented by the government, small business accountants will offer advice when submitting a government tender.
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