Britain's small and medium-sized enterprises (SMEs) are securing an increasing share of government contracts, official figures published yesterday (February 27th) have revealed.
As the data shows, while 6.5 per cent of government spending went to SMEs in 2009/10, this increased to 6.8 per cent in 2010/11 and ten per cent in 2011/12.
With the Coalition Programme aiming for 25 per cent of government spending to flow to SMEs - both directly and through the supply chain - by the end of the current Parliament in 2015, the figures reveal that positive steps are being made.
What's more, with Cabinet Office statistics detailing that SMEs benefitted from a further six per cent of indirect spending via the supply chain in 2011/12, it seems that the government is enjoying some success as it bids to meet its target.
"We reformed how government buys public services to make sure we're attracting the most competitive, innovative and high quality range of suppliers, including SMEs," said Cabinet Office minister Chloe Smith.
"SMEs are a key driver for the country’s economic growth, but in the past it was far too difficult for them to win business with government.
"We are working to change all that and ensuring every department has actions in place to increase SME spend, even though we are spending less overall."
Ms Smith added that it is "extremely encouraging" to see how efforts to increase the volume of business the government does with SMEs are having a positive impact, although she emphasised the fact that there is still "a long way to go" if the coalition is to fulfil its goals.
And as smaller firms secure a larger share of public contracts, it's important that they are prepared to deal with the increasing workload and pressure that comes with such deals.
By investing in extra office space, they could cater for a larger workforce as they attempt to carry out various projects as quickly and efficiently as possible.
SMEs procuring more government contracts, figures reveal
