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Small is beautiful

31 July 2012

Local authorities are being urged yet again to assist small businesses in competing for tenders. The Federation of Small Businesses has produced a report including some key points for local authorities:

1. Advertise tenders in more accessible locations such as national portals;
2. Have initiatives to help small businesses with the tender process;
3. Provide detailed and timely feedback;
4. Ensure procurement exercises take account of social value, often linked to local spend;
5. Monitoring their spend to see how much of it is with small businesses and provide spend information freely;
6. Make the tender process more streamlined as it is often the costs associated with this which put small businesses off;
7. Look at breaking contracts into smaller lots which are more attractive to smaller companies.

The current economic climate means that councils will want to focus on local spend where they can to improve the financial situation in their area. But at the same time, economies of scale may make large contracts more attractive.

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