Small and Medium Business Hub
Centralised guidance for SMEs and departments on government’s commitment to support start-ups and small businesses via government procurement, and commit to paying them on time.
How we are backing your business
Through Backing your business: our plan for small and medium-sized businesses, we are delivering the most comprehensive package of support for small and medium-sized enterprises (SMEs) in a generation.
Growth is this government’s number one mission and SMEs are the engine room. Our plan is to make the UK the best place to start and grow a business, with a culture that supports entrepreneurship in every community and high street.
We’re delivering:
- the most significant legislation to tackle late payments in over 25 years, giving the UK the strongest legal framework on late payments in the G7
- a new Business Growth Service to simplify finding advice and support, including a new streamlined digital offer – Business.gov.uk, ending the chop and change of previous government business support programmes
- a package of support tailored to high streets to make it easier for SMEs to set up shop, ranging from a new licensing framework to targeted funding for places
- a massive £4 billion finance boost to increase access to finance for entrepreneurs – to inspire the next generation of small business owners, make the UK the best place to start and grow a business, and build a culture that celebrates and champions entrepreneurs
We also committed to making SMEs a national priority, ensuring they have a fair opportunity to win public contracts and setting ambitious SME targets for each department.
Government is committed to driving economic growth and strengthening supply chains by giving Small and Medium-sized Enterprises (SMEs) and voluntary, community and social enterprises (VCSEs) a fair chance at public contracts.
How are we supporting the commitment?
Government Targets and Action Plans
All central government departments (including executive agencies and non-departmental public bodies (NDPBs)) must set a three year target for direct spend with SMEs report results annually. Departments can also voluntarily set targets for, and report on, their indirect spend in addition to direct spend. See PPN 001 (PDF, 118KB)
Departments have SME Champions to lead on supporting SMEs. They have also develop and publish their own individual departmental Action Plan. Each plan details the steps they plan to take to make it easier to do business, how to become a supplier, and their latest spend with SMEs.
Cabinet Office - SME Action Plan
Crown Commercial Service - SME Action Plan
Department for Digital, Culture, Media & Sport - SME Action Plan
Department for Energy Security and Net Zero - SME Action Plan
Department for Environment, Food and Rural Affairs - SME Action Plan
Department for Education - SME Action Plan
Department for Business and Trade - SME Action Plan
Department of Health and Social Care - SME Action Plan
Department for Science Innovation and Technology - SME Action Plan
Department for Transport - SME Action Plan
Department for Work and Pensions - SME Action Plan
Foreign, Commonwealth and Development Office - SME Action Plan
HM Revenue and Customs - SME Action Plan
Ministry of Defence - SME Action Plan
Ministry of Housing, Communities and Local Government - SME Action Plan
Ministry of Justice - SME Action Plan
Nuclear Decommissioning Authority - SME Action Plan
UK Export Finance - SME Action Plan
SME Crown Representative
The Small Business Crown Representative is one of a network of Crown Representatives and, alongside our VCSE Crown Representative, is focused on helping the government in its engagement with specific sectors. The main aim of the role is to lead on the overall relationship between the government and small businesses, making sure the government gets the best value from small business and small businesses have the best possible opportunity to work with the government.
VCSE organisations
All central government departments (including executive agencies and non-departmental public bodies (NDPBs)) a two year target for direct spend with VCSEs and report results annually. For further information on how the Government is supporting VCSE organisations please visit the VCSE Business Hub.
Paying suppliers on time
Government has a target of paying 90% of its invoices within 5 days, and all of them within 30 days, to ensure we pay our suppliers on time.
Since 1 September 2019, any organisation that bids for a central government contract in excess of £5 million a year needs to demonstrate it has effective payment systems in place to ensure a reliable supply chain.
As a part of this, the government has set a standard of 95% of all supply chain invoices to be paid within 60 days for organisations who want to do business with government. Suppliers who do not comply with the Prompt Payment standard could be prevented from winning government contracts. This will help ensure good payment practices are passed down to small subcontractors.
Raising concerns about poor public procurement practice and reclaim monies owed
The Public Procurement Review Service (PPRS) allows government suppliers and potential government suppliers to raise concerns anonymously about potentially poor public sector procurement practice.
If you have a concern about a procurement process or a problem with payment on a public contract, you can let us know by submitting this form and they will investigate for you.
PPRS report on the trends in the issues raised, and makes recommendations on how to improve. They also publish results from their investigations.
Increasing visibility of tenders and contracts
You can use Find a Tender to view public procurement notices published by UK contracting authorities. Register as a supplier after signing in and complete your supplier information to be able to bid for contracts.
Helpful Links
SME Crown representative - Shirley Cooper OBE (Linkedin)
Information and guidance for suppliers - Guidance and videos for suppliers to support doing business under the Procurement Act 2023.
Upcoming deals with CCS - Framework opportunities to join and win government work
Small Business Commissioner - An independent public body set up by government under the Enterprise Act 2016 to tackle late payment and unfavourable payment practices in the private sector
VCSE Business Hub - A guide to how the government is supporting VCSE organisations.
The Sourcing Playbook (PDF, 3.1MB) - Government guidance on service delivery, including outsourcing, insourcing, mixed economy sourcing and contracting
The Consultancy Playbook - Government guidance on how to commission and engage with consultants more effectively, achieving better outcomes, better value for money and improved Civil Service capability through the transfer of knowledge and skills
Procurement Policy Notes - Guidance on best practices for procurement for public sector organisations, together with supporting documentation
Updates to this page
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Replaced body text with new version
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Updated the case studies section to include an additional link to Crown Commercial Case Studies
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Updated the link for the following URL: Department for Digital, Culture, Media & Sport - SME Action Plan
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Updated the Helpful link entry for Minister of State to Jeremy Quin
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Updated the following text to reflect the updated figure of £12,500: Register with Contracts Finder to keep updated on new and upcoming contracts worth over £10,000 with the government and its agencies
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Updated to reflect the change from Department for International Trade to Department for Business and Trade
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Added link to Cabinet Office - SME Action Plan. Updated the links to Department for Business, Energy & Industrial Strategy - SME Action Plan, Department for Transport - SME Action Plan, Home Office - SME Action Plan
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Added link to latest Home Office SME action plan.
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Updated the section 'How are the central departments supporting SMEs?' to include a link to the page 'Cabinet Office Small and Medium Enterprises (SMEs) Action Plan'
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Link added to the Selling to Government Guide
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Updated link to the new Home Office SME Action Plan.
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Added links to the Sourcing and Consultancy playbooks.
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A Department for Education case study has been added to the case study section.
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The 'How are the central departments supporting SMEs?' section has been updated to link to the'Defence Science and Technology Laboratory - SME Action Plan'.
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Updated to link to new action plans for Department for International Trade and Department of Health and Social Care
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First published.