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Three in five Scottish public sector contracts go to Scottish SMEs

An annual report produced by Public Contracts Scotland has revealed that of the 22,737 contracts awarded in 2017/18, 13,585 of these were given to companies with less than 250 employees and registered to a Scottish address. This equates to 59.7% of the total, with a further 18.5% going to SMEs from outside the country.

When measured by revenue, SMEs are responsible for almost half of all spending. Smaller firms based in Scotland accounted for about 32% of the £11.6bn spent during the 2016/17 year.

Scottish first minister Nicola Sturgeon said: “The implementation of the Procurement Reform Scotland Act two years ago required public sector organisations to take action to make sure their procurement practices were open to SMEs. And the steps we have implemented are having a positive impact, as demonstrated by the welcome increase in public sector contracts being awarded to small businesses.”

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