GIC Capital Welcomes News of SME Public Sector Contracts in Scotland and Calls for Further Support for Small Businesses

GIC Capital, which champions the role small businesses play in the UK, has welcomed the news that more public sector contracts in Scotland have gone to SMEs but warned there’s still a lot to be done to support small businesses.

The celebrated news follows the Procurement Reform Scotland Act coming into force two years ago, which aimed to make procurement practices more accessible to SMEs. The latest statistics in the annual Public Contracts Scotland report demonstrates that the efforts the public sector have made to engage with smaller businesses haven’t gone amiss. Some 78% of the 22,000 contracts advertised by Public Contracts Scotland in 2017/18 went to SMEs, representing a £5 million boost to those small businesses that secured contracts.

Despite the positive findings, the experts at GIC Capital want to see accessibility to public sector procurement become even easier for SMEs and to be extended across the UK.

Kennedy Zvenyika, Manage Director of GIC Capital, said, “The success the Procurement Reform Scotland Act has achieved in just two years is incredible and it’s having a real impact on the country’s SMEs. It’s an excellent foundation to continue building on that has benefits for both public sector organisations and local businesses. With improved accessibility, organisations are in a better position to source the bids that best match their goals and have the potential to save money, while SMEs can focus on growth with the opportunity to secure lucrative contracts that were previously out of their reach.

“It’s important to continue building on the success that these first two years have had. It would be great to the statistics reflected across the whole of the UK and steps taken to encourage more SMEs to bid.”

One of the key ways that Scotland has improved it’s SME involvement in procurement procedures is by increasing the number of contracts advertised online to boost visibility. However, GIC Capital would like to see the active encouragement of SME participation go further, with improved access to finance to allow more small businesses to grow enough to take on larger contracts.

Zvenyika added, “There’s no lack of ambition in the SME sector but what often holds small businesses back is the struggle they face to access finance. An approach that considers public sector procurement procedures and giving SMEs the finance they need to place competitive bids could make a huge difference.”

To find out more visit https://www.giccapital.co.uk/