The Week Ender: Government Contracts for Small Business?

I met an old friend the other day who told me that he sold his little business, he used to work on MoD – Ministry of Defense – contracts and had developed testing programs for them.

I asked what he was doing next, go back and do it again? He answered he would need to find something else, since you could not get into the same business again. That intrigued me and I asked why?

You can not get listed anymore, the MoD only deals with companies who have done work for the MoD before and as a startup you of cause have not! I said the government is talking about letting small business get it’s fair share on government contracts. He just smiled, and said, “talk is cheap!”

He then carried on to tell me that in the U.S. small business was sponsored by government, to get contracts, and once they started your business was set for growth. Many of his friends in the U.S. had started businesses and received government contracts – defense and others – first for $500,000, second $1 million and then $5 million. The government was actively promoting small business in all areas.

What happens in the UK seems to make sure the same contractors get the work, innovation is hampered this way and no true competitiveness exists. If these alleged practices are true, than they would be highly damaging for small business.

The only thing small business seems to be good for in the UK is paying more and more taxes, in return we appear to be lied to more and more. ST.

comments powered by Disqus
WinWeb Business Cloud - Creating Financially Sustainable Businesses