Not sure what procurement is? Check out this article first to get to grips with the basics of tendering and securing contracts.
Procurement is a big topic that is growing in discussion particularly in the small business community due to developments in diversity and inclusion but also the barriers that have been identified such as issues with local authority spending. It is a common misconception that tendering is only applicable for large businesses. However, for small businesses, it is worth understanding the tendering process and opportunities that procurement can provide as it can be relevant and benefit many sizes of company. As a small business, opportunities in procurement include winning a contract in the public sector which can mean guaranteed income or winning a place on a long-term contract or framework agreement which can have a significant impact on the sustainability of your business. It also allows for the opportunity to be able to build valuable relationships and experience that will help you to work with more buyers when tendering in the future. Â
The most recent Women in Enterprise Cross-Party Group (CPG) was held to discuss the topic of procurement. Cross-Party Groups are MSPs from different parties and other people who are interested in a subject or issue. The Women in Enterprise Cross-Party Group was set up 5 years ago by Women’s Enterprise Scotland to provide a platform for Scotland’s women entrepreneurs to advocate for their needs. During these sessions, expert speakers are invited to share their knowledge and experiences. In this meeting on procurement, we explored the challenges within the procurement process as experienced by small and medium-sized businesses, with a particular focus on women’s experience with tendering and securing contracts. There has been progress within the procurement space in terms of more companies understanding the value of working with small businesses and having a better awareness of inclusiveness and diversity than in previous years. However, there are still issues that need to be addressed which were highlighted in the CPG meeting. Some key areas for improvement include more support for rural businesses, certifying suppliers and increasing procurement spend with local businesses. Visit the Scottish Parliament website for the CPG minutes. Â
Jackie Brierton, CEO of Growbiz, attended the recent CPG on procurement:Â Â
‘The discussion on procurement at the recent Women in Enterprise CPG was very timely. At a time when many small and micro businesses are struggling with increased costs along with a decrease in sales and income, gaining a public (or private) contract could be critical to their future. But more support to needed for smaller enterprises to deal with the complexities of tender processes and what they require to do to match the criteria. In some cases, a collaborative approach could work, with two or more micro-businesses jointly tendering for contracts. A good starting point is to access the useful information on the Supplier Development Programme website and to sign up for their free training events. https://www.sdpscotland.co.uk/ Â
At GrowBiz we provide advice and connections for small businesses or social enterprises in rural Scotland, and one of our priorities for 2023 is to support more rural enterprises to gain public sector contracts. Contact details at: www.growbiz.co.uk and www.reds.scot .’Â
It is promising to see the progress that has already been made both in the UK and overseas regarding making procurement an easier, more accessible process. It is important that there is continual movement towards taking the next steps to tackling the issues that have been identified and this will be the topic of a workshop held at the Business in the Parliament Conference (BIPC) in 2023, in collaboration with Women‘s Enterprise Scotland and the Federation of Small Businesses (FSB).  Â