FSB backs proposed public sector target for small businesses

Small printers could win at least 30% of all public sector contracts if support for a review gets the go ahead.

The Federation of Small Businesses (FSB) has told the 'Glover Review on the Role of SMEs in Public Procurement', which set the recommendation, that it welcomes the target.

It would mean that small businesses’ access to public tenders would be improved, especially at the micro end of the scale with printers of less that nine staff.

Clive Davenport, FSB trade and industry chairman, said: "The FSB believes that, with a target in place, efforts can be implemented to achieve the goal.

"We are pleased that the government is investigating small businesses and procurement. What we would like to see now is targets to be implemented to ensure small businesses win public sector contracts and reduce the barriers small businesses face."

The FSB is proposing that small businesses have a minimum of three weeks for a tender response. It is also calling for local authorities to hold tender briefing meetings with local micro businesses.

Stephen Alambritis, head of public affairs at FSB, said that, if the review is implemented, it would mean that smaller printers could take advantage of tenders, such as UK Olympic developments.

"However, the SME business has to prove its diversity and health and safety," he said. "Small businesses do well, but don’t always have that information formalised. There needs to be patience, because they don’t always go in for accreditation."

However, Alasdair Browne, director of trade printer Abbot Print, said he doesn’t believe in market distortions per se.

"To ensure that small businesses win at least 30% of all public sector contracts would be wrong," he said. "Yet I agree that the suggestions made by the FSB would be good. The government can do more to influence the possible outcome, so we end up with the ideal of 30%."

As a trade printer, Browne said work can filter down to SMEs from contracts won by larger companies.

"We rely on doing those jobs for the bigger printer that they cannot do, or at least not as cost effectively."

In the 2008 budget, the government included a provision to investigate the practicality for setting a target for SMEs to win more than 30% of public service contracts.

The Glover Review has been leading an enquiry into the barriers faced by small businesses in winning public sector contracts. More information is available at www.fsb.org.uk.