Are the public sector the perfect client to build the SME community?

Figures published for the period 2013 – 2014 show central government spent £11.4bn with SMEs, 10.3 per cent of their budget spend directly and 15.8 per cent indirectly, exceeding their stated target of 25 per cent - so does make the public sector a good client for the SME community?

Research from think tank, the Centre for Entrepreneurs, showed 78,128 SMEs are doing business with English and Welsh councils, earning more than £11.1bn over the past three years.

But, over the same period, 20 large businesses took a combined £9.9bn.

On our own doorstep Monmouthshire County Council topped 158 councils nationwide by already spending 25.6 per cent of its budget with SMEs, but the same report showed that at the other end of the scale Barnsley Metropolitan Council spends just 4.2 per cent with SMEs.

The indications are that at last public sector is starting to understand the needs of smaller businesses bidding for their work and legislation which came into force on 25 February is underpinning that, meaning that:

• everyone in the supply chain must comply with 30 day payment terms, including suppliers and sub-contractors

• public bodies must publish an annual late payment report, making their accountability more transparent

• the bidding process is simpler across the wider public sector – complex forms, such as Pre-Qualification Questionnaires, are now abolished for low value contracts

• the procurement process for public sector contracts will be quicker

At Digital Tuesday’s gathering today (July 7) at The Celtic Manor (5pm start in The Augusta Suite with free entry), we’ll aim to uncover the answers as we unravel the complexities and demystify the ‘myths’ of selling to the public sector.

UK Government has larger plans, with an ambitious target to spend 25 per cent of its annual £230bn goods and services budget with SMEs which is grabbing all the headlines, and rightly so. This coupled with its digital transformation drive promised to deliver a significant boost to the SMEs that underpin the UK economy.

How can you grab a slice of this £57bn opportunity?

You will have the opportunity to hear from, question and network with Derek Hobbs, head of digital services at the Department of Work and Pensions and chair of Digital Leaders Wales, who together with Paul Matthews, chief executive of Monmouthshire County Council, Andrew Falvey, commercial director at DVLA, and Peter Jones, deputy director Digital Health and Care at the NHS, will share their knowledge, experiences and insights into how SMEs can take advantage of the growing digital transformation opportunities within the public sector.

And to assist the informal networking with speakers and peers, drinks have been kindly sponsored by Digital Leaders Wales and Skyscape Cloud Services.

We look forward to you joining the debate.