» Resources » From barriers to solutions: procurement challenges for UK SMEs Blog From barriers to solutions: procurement challenges for UK SMEs There’s no two ways about it—Small and Medium Enterprises (SMEs) are the backbone of the UK economy, contributing significantly to employment, innovation, and economic growth. To really demonstrate this point, here are some key statistics about SMEs from the Federation of Small Businesses: At the start of 2023 SMEs account for 99.9% of the total business population; small businesses (with 0 to 49 employees) accounted for 99.2% alone. 16% of all SMEs were operating in Construction. SMEs account for three-fifths of the employment and around half of turnover in the UK private sector. These statistics highlight that when discussing SMEs, we are predominantly talking about small businesses, and if we push the boundaries further, we also need to consider Voluntary, Community and Social Enterprises (VCSEs). Despite their vital role, SMEs often encounter substantial barriers in accessing public and private sector procurement opportunities. In a guest blog for TechUK, Andrew Hawkins discussed the results of the seventh annual GovTech SME Survey, which highlighted the top challenges faced by SMEs: A lack of early industry engagement Too many procurement frameworks There is a risk-averse culture within the civil service The administrative burden of addressing social value in contracts While the inclusion of administrative burden was expected, I was surprised by the specific focus on Social Value amidst all the other administrative processes involved in procurement activities, such as prequalification, bidding processes, and payment procedures. In addition to the findings of the GovTech SME Survey, our investigations as part of the Procurement Leadership Group of the Supply Chain Sustainability School uncovered similar barriers, such as the time/duration of the procurement process (administrative burden) and the effect of business risk models within larger organizations on SMEs (risk-averse culture). Additionally, we identified other procurement barriers, including (but not limited to) challenges related to the quality of procurement processes and a disconnect between procurement and operational functions affecting on-site logistics. However, the most prominent barrier, echoed by both buyers and suppliers involved in our investigative process, was the lack of quality communication between parties, leading to significant gaps in understanding and collaboration. Addressing these procurement barriers is essential for harnessing the full potential of SMEs in the UK. From the statistics highlighting their significance to the challenges revealed by the GovTech SME Survey and our own investigations with the Procurement Leadership Group of the Supply Chain Sustainability School, it’s evident that SMEs are continuing to face numerous obstacles in accessing procurement opportunities. Whether it’s administrative burdens, operational concerns, or communication gaps, these challenges must be addressed to create a more inclusive and equitable procurement landscape. Speak to our sustainable procurement specialists in a free discovery call to futureproof your supply chain and meet your ESG goals. Sarah Chatfield Consultant Jun 18, 2024 Share: Related Articles July 2025 COâ‚‚ Performance Ladder Comparing EcoVadis with the COâ‚‚ Performance Ladder Sarah Chatfield July 2025 COâ‚‚ Performance Ladder Comparing EcoVadis with the COâ‚‚ Performance Ladder The EcoVadis rating system and the COâ‚‚ Performance Ladder (the Ladder) are two powerful tools that support organisations in improving sustainability performance. While they share some common goals, they take different approaches. Understanding how they complement each other can help companies strengthen both internal strategy and supply chain engagement. Understanding the tools EcoVadis provides sustainability […] Keagan Allin July 2025 Blog Modern Slavery in Supply Chains: CCLA’s Latest Data Anna Cantwell July 2025 Blog Modern Slavery in Supply Chains: CCLA’s Latest Data Back in 2019, CCLA formed the “Find it, Fix it, Prevent it” investor initiative. In 2023, they launched the CCLA Modern Slavery UK Benchmark, and last year they published the 2024 edition. This year they have published the CCLA Modern Slavery Global Benchmark pilot, which builds on the UK benchmark by applying its approach, assessing […] Keagan Allin June 2025 Blog The Hidden Roadblocks to Sustainable Labs and How to Overcome Them Mellita D'Silva June 2025 Blog The Hidden Roadblocks to Sustainable Labs and How to Overcome Them If I was given £1 for every time I heard the word autoclaves when engaging with the Higher Education sector to support them on sustainable procurement, I would be a millionaire by now. When we think about sustainable laboratories functioning and their efficiency, water use and its ethical disposal play an important part. And this […] Keagan Allin