smallbusiness.co.uk: Helping your business think big

Small businesses wanting to bid for public sector contracts need to ensure they have their e-commerce systems in place, the Association of Chartered Certified Accountants (ACCA) has warned.

The Government has stated its intention to get all public sector contracts online by 2005, but ACCA believes it will miss that deadline. However, the Association warns that this is not a reason for small businesses to be complacent, particularly as the Government has pledged to make more contracts available to small businesses, following recent calls from the Federation of Small Businesses.

Businesses risk losing out on the chance to get a slice of Ł26 billion a year that local authorities in England and Wales spend on a wide range of products and service if they are not ready for e-procurement by 2005.

E-procurement reduces costs and increases efficiencies through online interaction with suppliers and customers, reducing administrative costs. However, investment in the technology is required and businesses wishing to get involved with e-procurement need to either buy an appropriate software package or employing an Application Service Provider to run the solution. More information on how to go about this is available at www.ukonlineforbusiness.gov.uk.

Robin Jarvis, Head of ACCA's Small Business Unit, said: "Although it looks unlikely that the Government will meet its 2005 deadline, small businesses should remember that e-procurement will eventually be the only option available when contracting for public sector work.”

For more advice on tendering for public sector contracts visit www.counciltenders.net and www.buyitnet.org. Also have a look at our story on trading over the internet with local authorities.

(28/7/03)

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