» 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 October 2026 Blog Why ISO 20400 Matters More Than Ever in the Age of Scope 3, ESG, Supply Chain Risk and Business Resilience Mellita D'Silva October 2026 Blog Why ISO 20400 Matters More Than Ever in the Age of Scope 3, ESG, Supply Chain Risk and Business Resilience How sustainable procurement is moving from policy ambition to board-level delivery, and what organisations need to do next. Harriet Downes September 2026 Blog Modern slavery in the built environment: 5 practical lessons for businesses Isabel Townend September 2026 Blog Modern slavery in the built environment: 5 practical lessons for businesses Responding to growing risks and changing legal and commercial expectations Harriet Downes May 2026 Blog Comparing PAS 2080 vs the COâ‚‚ Performance Ladder: What’s the Difference and How Do They Work Together? Sarah Chatfield May 2026 Blog Comparing PAS 2080 vs the COâ‚‚ Performance Ladder: What’s the Difference and How Do They Work Together? At a high level, the distinction is simple. PAS 2080 provides a framework on how carbon is reduced across projects and assets (delivery and design), while the COâ‚‚ Performance Ladder focuses on how an organisation manages and evidences its energy consumption and carbon performance, and how organisations can certify and incentivise that performance through procurement. […] Harriet Downes