Is Public Procurement a Successful Small Business Support Policy? A Review of the Evidence

2013 ◽  
Vol 31 (1) ◽  
pp. 39-55 ◽  
Author(s):  
Kim Loader
Keyword(s):  
Small Business ◽  
Public Procurement ◽  
Business Support ◽  
Support Policy

scholarly journals Perceptions of Johannesburg small business operators about their small business support systems

2001 ◽  
Vol 32 (4) ◽  
pp. 31-37 ◽  
Author(s):  
F. G. Netswera
Keyword(s):  
Small Business ◽  
South African ◽  
Support System ◽  
Quantitative Research ◽  
Support Systems ◽  
Access To Information ◽  
Business Partnerships ◽  
Business Support ◽  
Black Empowerment ◽  
Unemployment Problem

Central to the current South African economic debates are the issues of equity, black empowerment and the promotion of small business activities. The promotion of small business activities is felt relevant as they are assumed to be addressing most of the country’s unemployment problem and those mentioned above while contributing largely to the GDP. Assumed problems facing this industry include the unavailability of support systems. This quantitative research explored through telephonic interviews, the perceptions of 60 Johannesburg small business operators of their small business support systems. The findings revealed access to information to be the perceived most important support system and business partnerships and subcontracting the least accessible.

scholarly journals Effects of public procurement of R&D on the innovation process: evidence from the UK small business research initiative

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kostas Selviaridis
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
Market Failure ◽  
Public Procurement ◽  
Innovation Process ◽  
Business Research ◽  
Content Type ◽  
Research Initiative ◽  
The Uk

Purpose The study aims to investigate how pre-commercial procurement (PCP) influences the activities, capabilities and behaviours of actors participating in the innovation process. Unlike much of PCP research underpinned by a market failure theoretical framework that evaluates the additionality of innovation inputs and outputs, this paper focusses on the role and capacity of PCP in addressing systemic failures impeding the process of innovation. Design/methodology/approach PCP effects on the innovation process were studied through a qualitative study of the UK small business research initiative (SBRI) programme. Data collection comprised 33 semi-structured interviews with key informants within 30 organisations and analysis of 80-plus secondary data sources. Interviewees included executives of technology-based small businesses, managers within public buying organisations and innovation policymakers and experts. Findings The UK SBRI improves connectivity and instigates research and development (R&D) related interactions and cooperation. Through securing government R&D contracts, small firms access relevant innovation ecosystems, build up their knowledge and capabilities and explore possible routes to market. Public organisations use the SBRI to connect to innovative small firms and access their sets of expertise and novel ideas. They also learn to appreciate the strategic role of procurement. Nonetheless, SBRI-funded small business face commercialisation and innovation adoption challenges because of institutional constraints pertaining to rules, regulations and public-sector norms of conduct. Research limitations/implications The study contributes to existing PCP research by demonstrating innovation process-related effects of PCP policies. It also complements literature on small business-friendly public procurement measures by highlighting the ways through which PCP, rather than commercial procurement procedures, can support the development of small businesses other than just facilitating their access to government (R&D) contracts. Social implications The study identifies several challenge areas that policymakers should address to improve the implementation of the UK SBRI programme. Originality/value The study demonstrates the effects of PCP on the activities, capabilities and behaviours of small businesses and public buying organisations involved in the innovation process.

scholarly journals Socio-economic sourcing: benefits of small business set-asides in public procurement

2018 ◽  
Vol 18 (3) ◽  
pp. 217-239 ◽  
Author(s):  
Timothy Hawkins ◽  
Michael Gravier ◽  
Wesley S. Randall
Keyword(s):  
Small Business ◽  
Transaction Costs ◽  
Government Spending ◽  
Small Businesses ◽  
Perceived Risk ◽  
Design Methodology ◽  
Public Procurement ◽  
Content Type ◽  
Source Selection ◽  
Selection Processes

Purpose Small businesses are critical to economic health and encouraged in government spending by set-asides – annual small business sourcing goals that often are not attained. Little research has explored the negative and risky stigmas associated with small business sourcing. Design/methodology/approach This research explores reduced transaction costs of small business sourcing to government buyers. A survey of 350 government source selections reveals lower transaction costs derived from lower perceived risk of receiving a bid protest and via more efficient source selection processes. Findings Contrary to common bias, the performance level of small businesses is no less than that of large business. Thus, small businesses engender lower transaction costs for correcting supplier’s performance. On the basis of these findings, managerial and theoretical implications are discussed.

Consultant–Client Relationships in UK SMEs

2012 ◽  
Vol 26 (6) ◽  
pp. 505-519
Author(s):  
Stephen A. Malone
Keyword(s):  
Small Business ◽  
Client Relationships ◽  
Client Relationship ◽  
Business Support ◽  
Uk Government ◽  
The Uk

This article reports on research into the role and value of a particular type of business consultant: a UK government-sponsored Personal Business Adviser (PBA). While it is an occupation that is now defunct in the UK, the author argues that its abolition may have been premature. The roles of the PBA are identified and are found to be in line with emerging views of the consultant–client relationship that are more moderate than popular extremes. This finding has implications for consultancy practice: various elements of the PBA job have wider applicability and usefulness for small business support.

How Small Business Enterprises of Russia Attract Investments: Practices and Problems

10.12737/5966 ◽  
2014 ◽  
Vol 2 (5) ◽  
pp. 47-54
Author(s):  
Фомичева ◽  
Irina Fomicheva
Keyword(s):  
Public Policy ◽  
Small Business ◽  
Exchange Rates ◽  
Interest Rates ◽  
Growth Rates ◽  
Small Businesses ◽  
Foreign Investments ◽  
Inflation Rates ◽  
Business Support ◽  
Capital Financing

Considered are possible sources of real investments for small businesses. It is shown how foreign investments in Russia make shifts towards securities market. Dynamics and structure of domestic sources of debt funds for fixed capital financing are examined. Considerable growth rates of the volume of investments is emphasized as well as growing number of sources of financing with substantial share of budgetary funds in the total amount of investment. Factors conducive to investment activities are outlined. Dynamics of mortgage lending, as the author shows, is not actually impacted neither by the dynamics of interest rates, nor by exchange rates ratio and inflation rates in Russia, while underuse of budgetary funds allocated for programs of small and medium business support proves that public policy in this sphere is inefficient.

Street-Level Technocracy in UK Small Business Support: Business Links, Personal Business Advisers, and the Small Business Service

10.1068/c0112 ◽  
2002 ◽  
Vol 20 (2) ◽  
pp. 179-194 ◽  
Author(s):  
Kevin Mole
Keyword(s):  
Small Business ◽  
Tacit Knowledge ◽  
Small Businesses ◽  
Support Service ◽  
Recent Attempt ◽  
Business Service ◽  
Business Policy ◽  
Street Level ◽  
Business Support ◽  
The Uk

The broad focus of this paper is the divergence of implemented policy from intended policy in UK small business support. The Small Business Service (SBS) is the United Kingdom's most recent attempt to provide coherent support for small business. With its structure of local franchisees and multiagency partnerships, the SBS is part of the United Kingdom's Modernising Government agenda, which aims to provide ‘joined-up’ and responsive public services. However, it is not always easy for policymakers to execute new plans in the form in which they were intended. Street-level bureaucracies develop where those who implement complex policies amend them to make them easier to apply in practice. This paper investigates the UK Business Links' Personal Business Adviser (PBA) service. The paper draws on data from a focus group often PBAs and subsequent survey of the 175 PBAs in England and Wales conducted in summer 1998. The experience and tacit knowledge of PBAs provides the expertise for a bespoke support service to small businesses. Business advisers have both technical expertise and closeness to delivery that confers the power to amend small business policy. This tacit knowledge confers powers akin to a ‘street-level technocracy’. Thus, policies that do not carry PBA support, such as targeting, are unlikely to be implemented effectively. A new approach to small business support has been formed from the difficulty in controlling PBAs through performance indicators, which appear to have distorted the intended policy, and the Modernising Government agenda. The new SBS devolves the operation, but not all control, of business advice from the national SBS to local Business Links. PBAs will play a major part in the network mode of governance of the new SBS franchisees.

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