Barriers stopping small companies from contracting with the federal authorities might be unearthed in a brand new inquiry.
The probe, referred by Finance Minister Katy Gallagher to the small business ombudsman, will decide if reforms launched final 12 months geared toward levelling the enjoying area for smaller operators are working or not.
Changes to Commonwealth procurement guidelines, which information the contracting of products and companies from the personal sector within the pursuits of the taxpayer, had been launched final 12 months with the intention of boosting participation of small companies.
The Australian Small Business and Family Enterprise Ombudsman Bruce Billson mentioned the federal government was dedicated to changing into an even bigger buyer of small companies.
But the method of coping with Commonwealth procurement was nonetheless advanced, expensive, complicated and time-consuming.
“We want to look at what support is given to small businesses to navigate what can be a complicated procurement process,” he mentioned.
“In some cases, small businesses are deterred by a feeling there is a ‘closed shop’ while in other cases they simply don’t know about the opportunities available, or the size of the contract can be simply too big.”
Of the $80.8 billion in contracts awarded to companies in 2021/22, lower than a 3rd had been awarded to small and medium-sized enterprises.
Mr Billson mentioned it was necessary to degree the enjoying area for small and household companies to make sure authorities businesses are getting probably the most worth for cash.
“Where there are procurement impediments, it can diminish opportunities to encourage entrepreneurship and competition and means the taxpayer and the nation may not be getting the most value for money.”
Source: www.perthnow.com.au
