Communities form the foundation of British society, acting as the essential building blocks upon which the strength of the United Kingdom is constructed. However, in recent years, communities have faced challenges that have weakened their cohesion and strength.
One of the key contributors to this decline has been the sidelining of small businesses, which were once integral to supporting local economies and serving the people within them.
Small businesses, including small and medium-sized enterprises (SMEs) and voluntary, community, and social enterprises (VCSEs), have struggled to thrive for various reasons – economic uncertainty, competition, cost of labour and materials (Enterprise Research Centre) – leaving gaps in communities that were once robust and interconnected.
Understanding their positive impact, the Government has proposed new legal framework that removes barriers for SMEs and VCSEs. Building on the Procurement Act 2023, the Government has proposed further reforms to public procurement, opening up new opportunities for small businesses and social enterprises.
But how will these reforms achieve this?
Read on to find out.
Supporting small businesses and social enterprises
Small businesses, described as the “lifeblood of communities” will have easier access to public-sector supply chains under the new procurement reforms due to the:
- requirement for contracting authorities to consider whether they can remove barriers to SME participation;
- greater visibility of upcoming public sector opportunities and early market engagement to explain requirements to better help SMEs and VCSEs prepare to bid;
- reservation of lower value contracts for SMEs, VCSEs or UK suppliers so only they can bid for the opportunity;
- banning of common barriers contracting authorities can use when setting criteria for procurements (e.g. requiring insurance to be in place before contract award);
- the banning of ‘Pre Qualification Questionnaires’ in lower value procurements so that SMEs and VCSEs cannot be knocked out of the process at the first stage;
These new procurement reforms place a stronger emphasis on SMEs and VCSEs in public procurement processes. This not only boosts their economic prospects but also provides communities with access to services and opportunities that these organisations are uniquely positioned to deliver. For example, VCSEs are often deeply embedded within the communities they serve, enabling them to provide tailored and impactful support that larger organisations may struggle to match.
Increased spending with SMEs and VCSEs also has a ripple effect. It creates jobs, reduces unemployment, and empowers communities to face challenges with greater resilience. When local businesses thrive, they reinvest in their communities, whether through employment, local partnerships, or direct contributions to social initiatives. In this way, the Government’s reforms aim to strengthen the UK from the ground up, ensuring that no community is left behind.
Meeting Community Needs
While removing barriers and increasing opportunity for SMEs and VCSEs is critical, a second aspect of the Government’s approach focuses on delivering quality support to meet the specific needs of communities.
Communities across the UK face diverse challenges, ranging from social isolation to unmet healthcare needs. Addressing these challenges requires services that are both tailored and accessible, ensuring that all individuals receive the support they need.
This is where small and social enterprises like We Are Group play a pivotal role.
We Are Group works with an ever-growing network of VCSEs, known as our Community Partner Network, to deliver services that directly benefit communities. Whether it’s services commissioned by Government departments through public procurement or programmes funded by corporate companies to support specific groups, We Are Group ensures that quality support reaches those who need it most. Our model also ensures that national funds flow down to these community organisations, helping to support their own long term sustainability.
Managing such a large network of VCSEs requires significant coordination and administrative effort. We Are Group takes on this responsibility, handling tasks such as referrals, appointment booking, and social value reporting – all through a world-class software that is ordinarily outside the means of the VCSE community.
By doing so, VCSEs are freed from the administrative burden, allowing them to focus on what truly matters: delivering quality support. This support is delivered in a variety of ways, whether in person at community centres or homes, or remotely via telephone.
As someone with a large-scale national outsourcing background, Jonathan Prew, Managing Director of We Are Group, said:
“Public procurement is a powerful tool for driving economic and social change. And I am quietly confident that the scene is starting to change. The message is becoming very clear for the large corporates seeking to work with Government; if you don’t work with the SME and VCSE community, then your competition will. If that is not a reason for businesses to change, then I don’t know what is!”
