For small businesses in Wales, the world of public sector procurement often feels distant, dominated by large corporations with seemingly endless resources. But with the evolving procurement landscape, particularly the new Procurement Act, the tide is turning, and Welsh SMEs are finding themselves with more opportunities than ever before.
In Wales, we’re a nation of small businesses, and it’s these smaller enterprises that are increasingly becoming the backbone of local economies. The question is, how do they get a foothold in public sector contracts? The answer lies in low-value contracts, often referred to as the “sweet spot” for SMEs.
The under £25,000 contracts are where many SMEs can shine. These contracts are manageable in scale, require fewer administrative hoops to jump through, and are often well-suited to the capabilities and capacity of small businesses. While major infrastructure projects or large-scale public service contracts might be out of reach for smaller firms, low-value contracts provide an accessible entry point into the world of public procurement.
One of the major tools in facilitating this access is Sell2Wales, the online portal where all public sector contracts should be advertised. Sell2Wales includes a useful “quick search” function, making it easier for businesses to find opportunities that match their skills and services. Even more importantly, the “quick quotes” feature allows buyers to reach out directly to suppliers, requesting services without needing to go through the lengthy and often cumbersome contract process. These quick quotes are used frequently for contracts under £25,000, and they offer a streamlined process for both buyers and suppliers.
For many small businesses, these contracts are a lifeline. They may seem modest compared to larger projects, but a contract of £25,000 could be the foundation on which an SME builds long-term sustainability and growth. These smaller deals can also serve as stepping stones to bigger opportunities down the line.
One of the most exciting developments in the new Procurement Act is the enhanced visibility of contract wins. Historically, it’s been difficult for SMEs to track who is winning contracts and how they might be able to tap into secondary opportunities through the supply chain. With the new rules, this is set to change.
For example, let’s say a large contractor wins the contract to build a new school. They’ll need landscaping services, janitorial support, catering, and maintenance – services that smaller, local businesses are perfectly positioned to provide. With the new transparency measures, SMEs will be able to see not only who wins the primary contract but also the associated opportunities down the supply chain.
This shift towards transparency is critical. It gives small businesses the visibility they need to position themselves for future opportunities. Even if they don’t win a contract directly, they can identify who the primary contractor is, approach them, and offer their services for related tasks. In an industry where knowledge is power, this kind of information can make all the difference for an SME trying to break into the public sector.
Both Business Wales and Sell2Wales are working hard to maximize the benefits of the quick quote system and low-value contracts. The reality is, while the opportunities are there, the system isn’t always well understood by either buyers or suppliers. SMEs may not know how to navigate the quick quote process, and buyers may not fully grasp how to tap into this pool of suppliers.
That’s why there’s a concerted effort underway to better educate both sides of the equation. Business Wales, in partnership with Sell2Wales, is developing strategies to work with suppliers, helping them understand how to identify and respond to quick quotes. On the buyer side, the goal is to encourage greater use of these quick quote opportunities, ensuring they are reaching the businesses that can deliver the goods and services needed.
By improving this understanding, the system becomes smoother and more accessible, ultimately opening up even more opportunities for Welsh SMEs. The potential for growth and development within this framework is significant, and as more businesses learn how to engage with these processes, the benefits to the local economy will only increase.
For SMEs, the message is clear: the opportunities are out there, and the system is evolving to support your success. Now is the time to engage with the tools available, learn how the process works, and seize the low-value contracts that can open the door to a thriving future. The procurement landscape is changing for the better, and Welsh SMEs are set to benefit from this new era of opportunity.
