The Cabinet Office has assured small and medium-sized enterprises (SMEs) that it’s on track with its proposal to award 25 per cent of central government business to them.
While many firms may breathe a collective sigh of relief at this news, perhaps the fact that the government has only hit 10.5 per cent at the midway point will delay any major celebrations.
Helping smaller suppliers has been a long term goal for the government, which has been trying to move away from the monopoly of major suppliers. And, to be fair, SME spend has increased significantly over the years – from £3 billion in 2009 and 2010 to £4.5 billion in 2012 and 2013.
However, it’s important for SMEs to remain realistic and recognise that the figure of 25 per cent may well be an overblown aspiration of the government that could never actually be realised.
Besides, how exactly the government will reach this figure still remains to be seen.
Posted by the Secret Businessman