Small businesses 'overlooked' by MoD
Feb 02 2011
The FSB says that the MoD is not offering enough defence contracts to small businesses
The Federation of Small Businesses (FSB) says the Ministry of Defence (MoD) is not offering enough defence contracts to small businesses.
The UK is the second largest defence exporter in the world with 9,000 small businesses operating in the defence sector.
However, 90 per cent of the country’s defence exports are won by the 20 largest companies in the sector.
The FSB has called for an overhaul of the way the MoD engages with small companies in its report The global defence and security industry: why small businesses matter, published in response to the MOD’s paper Equipment, Support and Technology for UK Defence and Security.
John Walker, national chairman of the FSB, argues that there is ‘a justified feeling among small firms that the MoD either does not recognise or understand the small business community – despite rhetoric to the contrary’.
‘It is obvious that small businesses are still placed at a significant disadvantage compared to their prime competitors,’ he adds.
The FSB believes small businesses are an ‘afterthought’, and that the government’s decisions are made with larger companies in mind.
It asks that the government facilitates business admission to the defence export market and suggests opening up a channel of communication dedicated to the sector.
Comment by Keith Cockburn
Thursday 3rd February 2011MOD should look to the open market rather than restrict themselves to the know good (who then can charge what they like). But it would make their cushy jobs a bit more difficult. Most of the RDA,s (regional development agencies) cash went to large firms who can say they will employ more (for how long?) and its hard to see how this will change now money is doled out to local councils. Nothing new I am afraid same old system !!
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