Kim Loader

The Challenge of Competitive Procurement: Value for Money versus Small Business Support

Both UK government and small firms believe that public sector procurement is a good way of helping to support small business and may even lead to improvements in service delivery. The article begins by examining the extensive government literature on procurement-related policies and initiatives, followed by a brief consideration of the SME policy context. It then presents and discusses evidence of procurement practice from public sector organizations, and assesses the implications for the small business sector.

Is Public Procurement a Successful Small Business Support Policy? A Review of the Evidence

Public procurement is a vehicle by which governments can provide direct support to small business. The public sector market is significant and attractive to suppliers of all sizes, yet the current UK government is the latest to feel the need to implement a variety of measures in an attempt to improve the chances of success for smaller suppliers. In this context I have undertaken a critical review of the existing evidence relating to this issue. I have found support for the policy to encourage small and medium-sized enterprise suppliers but also that many barriers, some first identified twenty years ago, still remain. Whilst various remedies have been proposed, it appears that public procurers lack clear priorities and objectives. This, together with a lack of regular and comprehensive supply data, is hindering improvement.

Supporting SMEs through Government Purchasing Activity

As major consumers of goods and services, governments have an opportunity to support SMEs directly through their purchasing policies. This study examines the experience of SMEs in the north-east of England in their attempt to supply UK public sector organizations, and finds that, despite recent initiatives, barriers are being experienced by the majority of SMEs surveyed. The findings suggest that both government and small business sectors face challenges, such as resolving policy conflicts, managing resource demands and facilitating organizational change, in overcoming these barriers. Further investigation is required to inform the resolution of these demands.

Encouraging SME Participation in Training: Identifying Practical Approaches.

This study was designed to provide insights into how barriers to small‐ to medium‐sized enterprises’ (SMEs’) participation can be addressed by training providers by examining evidence from a training programme offered over a period of 21 months. Previous research findings identifying influences on SME participation in training have been used as an analytical framework to examine an experience of training design and delivery in practice. Discussion and analysis of project data within the framework above identifies support for some of the relationships between SME participation and these influences. SMEs have taken up the training, participation grew over time, and positive feedback was received. More respondents reported an intention to participate in future training than had taken part in prior training. It therefore seems that the approach taken has been successful in overcoming barriers to SME participation. The paper concludes by discussing the implications of the findings for learning approaches that promote SME take up.

Are public sector procurement models and practices hindering small and medium suppliers

This article determines how local authority procurement practices affect their ability to successfully procure from small and medium enterprises (SMEs). It found that smaller suppliers are more likely to thrive where a broader-based value-for-money decision factor is required and where shorter and smaller-scale contracts are available through open competition. However, trends in local government buying appear to be towards partnership, with an increasing emphasis on cost. Public sector organizations and SMEs may need to reflect further in order to determine more realistically where the scope for SME suppliers exist. Further research is required to determine the scope of SME-friendly opportunities.

A multi-organizational cross-sectoral collaboration: empirical evidence from an 'Empty Homes' project

This paper analyses the processes, outcomes and tensions of a cross-sectoral collaborative venture involving several organizations with multiple logics and is based on empirical evidence from a collaborative ‘Empty Homes’ project. While, paradoxically, multiple logics are a basis for the partnerships existence (for example ‘value for money’ and local community benefit) to achieve these different aims simultaneously, its other aims or logics at times conflicted, resulting in intra-partnership tensions. Hence we offer novel insights into the practical aspects of collaboration at a local level and on multi-organizational relationships.

Small- and medium-sized enterprises and public procurement: A review of the UK coalition government's policies and their impact:

This paper examines the public procurement policy towards small- and medium-sized enterprises adopted by the UK coalition government during its five-year term of office from May 2010 to May 2015. First, it determines the policy instruments that have been implemented; second, it tracks policy development throughout the period and, third, it considers measurement and assessment of policy outcomes. Finally, it discusses the direction and nature of the policy development and considers implications for future policy development and further research. The paper found that the coalition government had actively and consistently pursued the policy of improving small- and medium-sized enterprise access to public procurement throughout the parliament. It determined that the coalition government had advanced the UKs intervention approach by its efforts in monitoring progress against some targets and, especially, by its increased use of regulation. As the legislation was introduced at the end of the period of office, it has been too early to consider how effectively the new requirements are being implemented, but the need to consider compliance and enforcement is identified. An aspirational target to spend 25% with small- and medium-sized enterprises was ostensibly met by central government departments but there is a need to develop better ways of measuring and collecting data. Finally, the evidence has revealed a low level of awareness of the initiatives amongst the target small- and medium-sized enterprise audience.

Is local authority procurement supporting SMEs? An analysis of practice in English local authorities

ABSTRACT The UK coalition government wishes to improve the access of small- and medium-sized enterprises (SMEs) to public procurement, in recognition of their importance to the economy and for the benefits they can bring to public procurement and the wider public sector. Local government provides a significant opportunity for small firms, spending £84 billion of the total procurement spend of £230 billion. However, about two-thirds of both small businesses and local authorities think that SMEs face barriers in successfully accessing public procurement. This paper examines how councils are supporting SMEs in the procurement process by analysing 67 entry forms to the ‘Best Councils to do business with’ competition. This unique data source has provided insight into councils’ attitudes and procurement practices, and demonstrates that although a wide range of supportive actions are being employed there is considerable diversity across councils. Ambiguities and tensions in policies, between local and central government, have also emerged.

What price competition? The management of competitive funding in UK local government

The study examines the management of competitive funding by UK local authorities. This funding, which is additional to core funding, is seen by authorities to be worth securing because it gives them the ability to provide services over and above those that must be provided to meet legislative requirements. However the evidence shows that considerable pressures are being placed upon local authorities as a result. These can be distinguished according to whether they are outside a local authority’s control, such as lateness of approval notification, or within their control, such as the provision of bidding activity cost information. Whilst competition remains as a feature of resource allocation, these pressures must be addressed by external agencies and local authorities as appropriate. The article concludes with a series of proposals for improved practice.