The Week Ender: Government Contracts for Small Business?

I met an old friend the other day who told me that he sold his little business, he used to work on MoD - Ministry of Defense - contracts and had developed testing programs for them.

I asked what he was doing next, go back and do it again? He answered he would need to find something else, since you could not get into the same business again. That intrigued me and I asked why?

You can not get listed anymore, the MoD only deals with companies who have done work for the MoD before and as a startup you of cause have not! I said the government is talking about letting small business get it’s fair share on government contracts. He just smiled, and said, “talk is cheap!”

He then carried on to tell me that in the U.S. small business was sponsored by government, to get contracts, and once they started your business was set for growth. Many of his friends in the U.S. had started businesses and received government contracts - defense and others - first for $500,000, second $1 million and then $5 million. The government was actively promoting small business in all areas.

What happens in the UK seems to make sure the same contractors get the work, innovation is hampered this way and no true competitiveness exists. If these alleged practices are true, than they would be highly damaging for small business.

The only thing small business seems to be good for in the UK is paying more and more taxes, in return we appear to be lied to more and more. ST.

2 Responses to “The Week Ender: Government Contracts for Small Business?”

1. Awards website
   http://www.awardsintelligence.com/
   
   Said on November 28th, 2007 at 5:21 pm

   Very interesting.

2. Nick
   http://www.remdel.com
   
   Said on December 4th, 2007 at 10:53 am

   How very true the above is.
   I am involved in delivering business services into a wide range of businesses and am often presented with opportunities to respond to local or central government contracts.
   Now I am not in the habit of wasting my (or other peoples ) time, so I would only respond if I REALLY thought I could deliver an excellent, relevant and cost effective service.

   Time after time we get rejected becuase we cannot provide evidence of delivering into the public sector. This is DESPITE empty promises that small businesses will be enabled to compete.

   PLEASE don’t treat us as idiots - it is the small entrepreneurial business owner that contributes so much to the coffers of central goverment - but still we get treated like we are an irritation and a thing to be patronised.

   Take note - you need to do something genuine to assist smaller businesses to deliver into the public sector, because only then will you get innovate, passionate service at a comeptitive price - rather than the turgid delivery that costs 10’s or even 100’s of times it should.
   If you do not the small business will seek engagements elsewhere to the benefit of other coutries.

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