Thursday 21 March 2013

A message from the Mayor to the Chancellor..


As part of the Budget announcement today, the Government made a promise that public sector procurement from small firms would rise fivefold.  As a small business owner I’m not going to hold my breath before diving in to swim with the big fish.  We’re a 10 person PR agency that would like nothing better than to help promote the important programmes and projects that are kicked off each year, and have the track-record to compete against the bigger players.  But access to the tax-funded pounds remains a difficult struggle based on our size.  There are three areas that make the Government’s promise more hot air than warm revenue.  Firstly, access to information about tenders often comes at a price.  Online services that conveniently collate relevant opportunities require paid-for-subscriptions, an expense prohibitive to small businesses.  Secondly, the time it takes to complete a full scale tender could engage half a small company’s workforce to research, draft and illustrate, especially with the often short deadlines.  And finally, the big fish suppliers in the public sector are able to keep costs so low that they can almost ensure a monopoly.  As a reasonably priced agency that has bid for work through formal tendering, we’ve been told our fees can be double the price of other bids that come from larger suppliers.  Big fish able to use economies of scale on other clients to win high profile work.  It’s a big pond of opportunity perhaps?  But while the processes favour the larger sharks, it’s unlikely the little fish will get a bite.

By Lucy George

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