By Daniel Hunter
Britain’s small businesses are finding it increasingly difficult to do business with large companies, according to findings unveiled by blur Group.
The independent research, which surveyed 141 small businesses in the UK, found that 70% of small business owners had found opportunities to work with large organisations limited due to the size of their own businesses regardless of whether they offered the best service or not. 69% had even been flatly refused the opportunity to participate in new business tenders on the grounds that their business was considered too small.
The length of time it takes large firms to award contracts was also cited as a major challenge for growing businesses. 87% of respondents found that tender processes were so time-consuming that they didn’t have sufficient resources to dedicate to the process and had to withdraw as a result.
The survey also found that almost half (44%) of small business spend in excess of £1,000 for every new business tender they participate in, yet much of this investment is wasted due to unfair pitch processes. Eight out of ten (81%) found that most pitches were won by companies with existing relationships rather than the best ideas and 93% admitted they had participated in new business pitches where they stood ‘no chance of winning’ as the client had a clear favourite from the outset of the process.
Philip Letts, blur Group CEO commented, “The government continues to champion small businesses yet it is clear that large organisations are suffocating Britain’s fledgling firms through outdated work practices which have more in common with Victorian Britain than the digital age.
“If the recent upturn in the UK economy is to turn into a full recovery, large organisations must make it easier for small businesses to tender for contracts. In doing so, big businesses will gain access to a wider pool of talent that can offer truly innovative approaches that create real value for both firms, and the wider economy as a whole.”
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