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Small firms missing out on public sector work

12:00, 01 May 2012

updated: 12:29, 01 May 2012

Roger House, chairman of the FSB in Kent and Medway
Roger House, chairman of the FSB in Kent and Medway

by business editor Trevor Sturgess

Small firms are losing the battle for public sector work, according to a survey.

Despite government efforts to make it easier, the latest figures from the Federation of Small Businesses (FSB) show they are still struggling to win public sector contracts.

The Voice of Small Business survey panel of 2,700 FSB members in England, including several from Kent, reveals 40% of small firms believe the tendering process for public sector contracts is too complex.

Some 37% think they are sidelined by public officials who, they claim, believe bigger firms must be better.

The findings come despite the government’s launch of its Contracts Finder website designed to make it easier for small firms to find and bid for public sector work.

The survey showed that although one in seven firms had bid for a public sector contract in the last year, 41% failed to secure any business.

As many as 40% now want a simplified tendering process, while 38% believe the public sector should actively use small businesses.

Roger House, FSB chairman for Kent and Medway and pictured above, said: "The government has made an effort to raise awareness in the public sector that Britain's entrepreneurs and small businesses are willing and able business partners.

"But clearly more must be done. While central government has raised its game, without a true culture change across the public sector as a whole, the government's initiatives will have little impact."

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