Prime minister David Cameron has promised to open up the government’s supply chain to smaller organisations.
Speaking at the launch of a new online tool, Contracts Finder, Cameron said: “Wherever possible, we’re going to break up large contracts into smaller elements, so that SMEs can make a bid and get involved.
“And where that’s not possible, we’ll also work proactively with our large suppliers to directly increase opportunities for smaller organisations in the supply chain.”
Cameron says he wants 25 per cent of all government contracts are awarded to small and medium-sized enterprises.
At the moment it is estimated that SMEs only win five to ten percent of the billions of pounds of public sector business.
“If we meet this goal it will mean billions of pounds worth of new business opportunities for SMEs,” he said.
The move is part of changes to the way government procures goods and services.
“We need to make the system much more open, competitive and transparent,” said Cameron.