Unlocking opportunities: How the Procurement Act can boost small business partnerships with government

Ahead of the introduction of the Procurement Act on 24 February 2025, Enterprise Nation partnered with the Findr Collective to host an event on how small businesses can benefit from the Act by working in partnership with government.

Delivered in front of a live audience of policy makers and small business leaders, we were delighted to be joined by:

• Shirley Cooper OBE, SME Crown Representative, Cabinet Office

• Lindsay Maguire, deputy director of Procurement Reform, Cabinet Office

• Gus Tugendhat, founder, Tussell

• Ben Powell, UK head of central government, Deloitte

• Paul Brown, head of business performance, Entegra

• Hannah Symmons, senior commercial Manager, BT

Read on for a summary of what was discussed.

Panel one: What the Procurement Act means, and how small businesses can prepare

The first panel was chaired by Emma Jones CBE, founder and CEO of Enterprise Nation, and included Shirley Cooper OBE, SME crown representative at the Cabinet Office, Lindsay Maguire, deputy director for procurement reform at the Cabinet Office, and Gus Tugendhat, founder of Tussell.

Lindsay Maguire provided an introduction to procurement policy. She explained that procurement is a highly regulated area as the government spends £350 billion a year and it is used as a bargaining chip in trade negotiations. However, the government sees procurement as a mechanism to deliver wider policy and enable economic growth.

Shirley Cooper outlined the opportunities the Procurement Act will bring to SMEs. She explained that all procurement staff will be accredited on what the Act means for smaller businesses. Buyers will now have to actively consider how to include SMEs in the tendering process, which will require both technical and cultural changes within the public sector.

Maguire noted that another aim of the procurement act is to lead to culture change across government on its approach towards late payments. To this end, from 1 October 2025, companies bidding for government contracts over £5 million per annum will be excluded from the procurement process if they do not pay their own suppliers within an average of 45 days.

Cooper also explained the background to the act. The current procurement rules were based on European Union directives, which were often seen as clunky and not fit for purpose in the UK context. The new legislation aims to make the system much more flexible, allowing procurement teams to design their own approaches that focus on outcomes rather than rigid procedures.

A key innovation to look forward to is the introduction of a new central digital platform, which will revolutionise the way businesses engage with government contracts. Maguire explained:

"Gone will be the days of repeatedly producing identical information for each bid.

"Businesses will be assigned a unique identifier, allowing them to securely store and re-use their information across multiple tenders."

Following this announcement, one way in which the new platform could be used to boost small business confidence in procurement was suggested. It was suggested that when a strategic supplier wins a government contract, it should be announced which small businesses have been selected to support the supplier on the framework.

Complementing this discussion, Gus Tugendhat highlighted how improved access to data can level the playing field for SMEs:

"By arming themselves with insight into market trends, competitor analysis and buyer behaviour, smaller businesses can make much more informed decisions about where to focus their efforts, rather than scrambling to bid for contracts."

Gus added that the small businesses that take advantage of this access to data are giving themselves far more capacity to compete with larger companies in this area.

Panel two: What strategic suppliers are looking for from small businesses in their supply chain

The Findr Collective's Co-Founder, Greg Watts, chaired the second panel of the event, and was joined by Ben Powell, UK head of central government at Deloitte, Paul Brown, head of business performance at Entegra, and Hannah Symmons, senior commercial manager at BT.

These large companies emphasised their growing focus on cultivating diverse, innovative supply chains that include more small businesses.

Ben Powell said:

"The Procurement Act is a real force for good in getting us to work with SMEs across the country.

We increasingly see our role as a convener of the SME ecosystem as much as a traditional supplier."

The panellists stressed the importance of SMEs proactively engaging with potential partners, building relationships and clearly articulating their unique capabilities. Powell said:

"It's incumbent on smaller companies to raise their profile and visibility. The more you can showcase what you do, the more likely you are to be found and considered for opportunities."

Delving deeper into the partnership dynamic, the panel discussed the key criteria strategic suppliers look for when working with SMEs.

Paul Brown explained:

"Operational excellence is critical - we need suppliers who can deliver at speed and demonstrate innovation."

Brown also highlighted the growing emphasis on social value creation, noting that "this is an increasingly important element of the value added that strategic suppliers are looking for". He emphasised that large companies are aware of the challenges smaller companies face in bringing new ideas to scale in a meaningful way within the government context.

A recurring theme throughout the discussions was the need for patience and perseverance on the part of small businesses navigating the public procurement landscape. "Entering this process is often trial and error," Powell warned. "The best partnerships we've forged have been refined through iteration."

Hannah Symmons from BT underlined the reality facing small businesses when trying to compete for government contracts. The reality, Hannah said, is that competing for government contracts entail very lengthy, resource-intensive processes for small businesses. She added:

"Procurement processes are often set up for multi-million pound deals, targeting organisations with all the resources to meet those hurdles."

Hannah emphasised the importance of small businesses leveraging and defining the specific benefits they bring to the table, including the showcasing of case studies that demonstrate their ability to fill gaps in strategic suppliers capabilities at pace, with the capacity to innovate.

The event closed with a series of practical recommendations for SMEs seeking to capitalise on the Procurement Act's provisions. These ranged from the tactical - getting accredited, improving visibility through pre-market engagement, and ensuring operational excellence - to the more strategic.

Smaller enterprises were urged to leverage their inherent agility and willingness to take calculated risks, while also demonstrating how they can deliver social value in line with public sector priorities. Crucially, SMEs were encouraged to proactively engage with government, industry bodies and potential partners to build the relationships and understanding needed to thrive.