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.