Small companies eye 7,000 online contracts

Micro business groups have welcomed the opening of a new internet portal that lets their freelance, self-employed and enterprise members bid for public sector contracts worth £100,000.



Launched by the Department of Trade & Industry, the site already offers over 7,000 public sector procurement contracts in both local and central government.



For the first time ever, the smallest of companies can access thousands of government contracts in one place, while also registering their details, such as their specialism, for future deals.



Teresa Graham, a member of the Small Business Council, said the portal is "a wonderful step forward" in bid to remove the barriers faced by small businesses when trying to work with government.



"It will provide businesses with a shop window to the lower-value contract market place," she said referring to the contracts, typically under £100,000 in value.



The Professional Contractors Group welcomed the portal, but rejected claims 'barriers faced by small companies' had been eliminated by its unveiling.



"With so much experience, expertise, skill and talent on offer from the UK's freelance workforce, their exclusion from many government contracts simply doesn't make sense," explained PCG's John Kell.



"The new portal does not remove the barriers they face - excessive requirements for funds and insurances to be in place before a tender can even be submitted, and unsuitable, inflexible supply chains - but at least small businesses can now see what is available."



Adding its support for the new website, the Federation of Small Businesses yesterday hinted small businesses finally have some "good news" to celebrate.



Clive Davenport, trade and industry chairman said: "The new portal is good news for small businesses that have been left out in the cold when it comes to getting work from public sector bodies. It should make it easier and quicker for small businesses to get contracts."



But the Federation warned that because it is not compulsory for local authorities and government departments to advertise contracts on the site, there must be a sustained effort to publicise the initiative and get businesses and those in charge of public procurement to take part.



"It will only work if government departments and local authorities get behind it wholeheartedly," Mr Davenport said.