The Role of Public Sector Business in a Downturn
With the CBI forecasting a significant slowdown in business growth from 3.7% to 1%, it’s never been more important to make your business as resilient as possible in the face of an economic downturn. Today, we’re running you through the benefits of getting onto a Public Sector framework to secure your business’ resilience through an economic downturn.
Resilient Business in a Rough Economy
When the economy is uncertain, it’s vital to ensure that your business is secure and resilient enough to weather any pending storms. Unfortunately, there’s no single cure-all piece of advice that will make your business recession-proof-however, being involved in Public Sector business can certainly help.
During Britain’s recession between 2008 and 2010, it was Private Sector businesses that were hit the hardest as they experienced slower growth and rapid wage decreases when compared to their Public Sector counterparts. What’s more, the Public Sector’s desire for innovation and improvement, as fuelled by the security of our taxes, makes it resilient as it constantly evolves and betters itself for the benefit of the consumer.
Public Sector Expenditure Isn’t Slowing
When the economy takes a downturn, not everyone suffers equally. Even in times of economic uncertainty, the Public Sector continues to spend, making it a promising prospect for SMEs, especially those that have growth in their sights, even during a downturn.
In 2020, during a year of heightened economic uncertainty stemming from pandemic-induced job insecurity, Public Sector spending was estimated to be in excess of £908 billion. This amount keeps increasing, with 2021 Public Sector expenditure estimated at over £1 trillion, with little sign of slowing. Of course, this is all relative to inflation and RPI, but it’s vital to understand where funding and growth opportunities are. Additionally, Brexit – whilst complicating business in its ambiguity, red tape and compliance complexities – has offered British businesses the opportunity to reform and simplify their procurement processes, unleash opportunities for British businesses and innovate in Public Sector delivery.
Why work with the Government?
With £284 billion being spent across the whole of Government each year on Public Sector endeavours, your business can truly grow and create significant resilience by getting on a framework and winning the bids available for your business. Many businesses fear supplying local or central Government, based on the preconceived notion that only established businesses with existing connections can be successful – if that’s you then take a look at the Myth’s Blog, we might surprise you!
However, small and medium-sized enterprises – or SMEs – can provide the vital innovation needed to provide services at a far more reasonable cost than large-scale businesses, making them a far more cost-effective option. What’s more, the Government has committed itself to procuring a minimum of 33% of its goods and services from SMEs, meaning that funding isn’t just available – it’s readily up for grabs with the UK Government actively seeking to expand the presence of SMEs too.
Government contracts also present fewer risks; businesses are at less risk of going under if they have Government support. The Government have dedicated themselves to investing in these businesses to produce growth and innovation. Furthermore, approximately 90% of all Government invoices are paid within five working days, making this a largely reliable source of income. Even better, the nature of these Government frameworks ensures a four-year lock in, keeping your business on preferred supplier lists for a substantial period of time. This allows you ample time to sustainably grow your business.
There are two primary challenges SMEs face when bidding for Public Sector business.
Firstly, they don’t feel able to obtain a seat at the table, fearing that these spaces are reserved for billion-pound companies. What’s more, these businesses receive a bad reputation for their work with Government – think of G4S or BAE Systems – which can be rather off-putting.
Secondly, smaller businesses often overlook the value of partnering with an experienced expert team to assist them in their journey onto Government frameworks, leading to poor-quality bids, rejected framework applications and the loss of significant amounts of potential business growth. Even large-scale companies with an in-house Bid Team often lack the up-to-the-minute knowledge and experience to utilise Government frameworks effectively without outsourcing.
However, GovData proactively provides solutions to both of these challenges by providing accessible advice and practical, real-world partnerships for SMEs looking to obtain Government business. We guide SMEs, just like you, towards scalable success within the Public Sector in a way that maintains your core business values. We take on the hassle of bidding for frameworks for you, using our expertise and resources to get you successfully awarded onto relevant frameworks. .It’s what we do every day and we’re proud of our 100% Quality Scores and 97% success rate for framework applications.
The GovData Difference
GovData offer exceptional guidance on bidding for Public Sector business, with a track record of fantastic results. We have assisted businesses to win over £37 billion in contracts across the Public Sector during the past 20 years and been successful with over 1,000 submissions completed in the last 3 years alone for a variety of Central Procurement Government frameworks.
If you’re interested in how your business can thrive with the help of a Government framework, or want to know the benefits of Public Sector procurement for your business, don’t hesitate to get in touch.