Supporting SMEs through Government Purchasing Activity

Abstract

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.