Small businesses and social enterprises are the life blood of the communityDon’t crowd out SME’s. by Colin Crooks
The government’s ambition to innovate in public services and to create 2 million jobs in the private sector over the next 3-4 years implies a great opportunity for SME’s to grow. Looking deeper though I am sceptical that this rhetoric will deliver for small business – rather it looks like the large corporations will get most of the opportunities and drive their margin by ruthless sub-contracting of small business.
The reabsorbing of Quangos into their host departments, and the intense focus on large scale procurement as demonstrated loudly by Philip Green, suggest that opportunities to serve smaller government departments will evaporate and contracts will become ever larger. Set against that the government has recognised the central role that SME’s could take in the Big Society. Small businesses and social enterprises are the life blood of the community and can, if they remain healthy, do even more; so please don’t crowd us out in the drive for efficiency.