What Small and Medium sized Enterprises can do for us

Value for money

Opening up public procurement markets to SME’s can encourage greater competition in supply markets, thereby reducing the costs of procurement for Local Authorities. SME’s may have lower administrative overheads and management costs than larger firms. Depending on the nature of the procurement, this can result in lower prices.

Quality of service

SMEs tend to have short management chains and approval routes, which enables them to respond quickly to changing requirements. SMEs may also be highly focused on particular markets, making them especially responsive to changes in those markets.
 
SMEs are often well placed to offer a more personalised level of service, developing bespoke products and services or tailoring existing ones to meet the specific needs of customers. They are often able to develop sound long-lasting relationships with their customers.
 
SMEs may also be better positioned to supply higher quality specialist products or services than their larger competitors, either because larger suppliers are discouraged by the limited demand, or because, by concentrating on niche markets, SMEs can retain skills, originality and commitment to their specialist field.

Innovation

SME’s can bring innovation through the early exploitation of new technology, providing products or services in new or underdeveloped markets, or by using innovation to differentiate themselves from established market players.