» 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 August 2025 Blog Circular Business Models: What They Are and Why They Matter Lucy Picken August 2025 Blog Circular Business Models: What They Are and Why They Matter Unlike the traditional linear model of ‘take, make and dispose’, a circular economy means we keep our products and materials in use for as long as possible. With this approach, we maximise the value of what we already have through better design and manufacturing and maintaining, reusing, refurbishing, or recycling our items. Read more about […] Keagan Allin July 2025 COâ‚‚ Performance Ladder How the COâ‚‚ Performance Ladder Complements Leading Building Sustainability Standards Sarah Chatfield July 2025 COâ‚‚ Performance Ladder How the COâ‚‚ Performance Ladder Complements Leading Building Sustainability Standards Reducing carbon emissions in the built environment is a priority for both policymakers and industry. As sustainability standards like BREEAM, LEED, and Level(s) help improve the environmental performance of buildings, the COâ‚‚ Performance Ladder plays a unique and complementary role: focusing not just on buildings, but on the organisations and supply chains behind them. Understanding […] Keagan Allin July 2025 Blog How Heatwaves Affect Your Business – and What to Do About It Ross Primmer July 2025 Blog How Heatwaves Affect Your Business – and What to Do About It What is a Heatwave? A popular flavour of crisps….? a good day to go to the beach….? a hosepipe ban…? Heatwave is a word that we often hear but have you ever stopped to think about what the term means, and why we seem to be using it more often? In the UK, the Met […] Keagan Allin