BidQuest Blog

The £400bn Opportunity Many Small Businesses Overlook

March 2026

SMEs make up 99.9% of UK businesses, yet for years only around 20% of public procurement spend has gone to them directly - a figure that has barely moved since 2019. The Procurement Act 2023, which came into force in February 2025, was specifically designed to change that. For the first time, central government departments are now required to set and publish SME spending targets. The data is only just starting to come in… which means right now is the best time for small businesses to get procurement-ready and take advantage of a market that is, by government mandate, actively opening up.

Every year, the UK public sector spends hundreds of billions of pounds buying goods and services from the private sector. And yet, most small business owners I speak to have never seriously considered it as a route to growth.

That's something I want to change.

I'm Christina West, founder of BidQuest and an SME bid consultant based in the UK. I work with small and growing businesses to help them understand, navigate and ultimately win public sector contracts. And I genuinely believe this is one of the most underused growth opportunities available to small businesses right now.

So let me walk you through what the market actually looks like, and why it might be worth a closer look.

 

What Does the Public Sector Actually Buy?

The public sector is made up of thousands of buyers; local councils, NHS trusts, government departments, universities, housing associations, police forces - all buying from the private sector, all year round.

And the range of what they buy is broader than most people assume:

  • IT and digital services
  • Consultancy and professional services
  • Training and education
  • Healthcare and wellbeing
  • Marketing and communications
  • Facilities management and construction

If your business sells a service, there's a very good chance the public sector is already buying something similar from someone else. The question is whether that someone could be you.

 

Why Small Businesses Often Dismiss It (And Why They Shouldn't)

When I talk to founders about public sector work, I hear the same concerns come up again and again:

"It's only for big companies." "The process is too complicated." "We wouldn't know where to start."

I understand why it feels that way. The language can be jargon-heavy, the portals take some getting used to, and the timelines can feel long. But here's the thing - these barriers are more perception than reality.

Smaller businesses often bring exactly what public sector buyers are looking for: specialist expertise, genuine flexibility, and the kind of innovation that larger suppliers can struggle to deliver. In fact, increasing SME participation in public procurement is an explicit government policy objective. The door isn't just open for smaller businesses… buyers are actively encouraged to walk through it with you.

 

The Different Routes In

One thing that surprises many founders is that public sector work isn't just one type of contract. There are several routes in, depending on the size and nature of your business.

Open tenders are single contracts advertised publicly - any supplier meeting the criteria can submit a bid. These are listed on platforms like Contracts Finder and Find a Tender.

Framework agreements are pre-approved supplier panels. You first compete to get onto the framework, and then buyers run smaller competitions among those approved suppliers. For many SMEs, frameworks are a fantastic entry point - once you're on, you get repeat opportunities over several years without having to start from scratch each time.

Smaller contracts are often where SMEs find the best fit. Specialist consultancy, niche expertise, pilot programmes, local service delivery - these contracts regularly fly under the radar because small businesses assume the public sector only works at scale. It doesn't.

 

Where to Actually Find These Contracts

If you're wondering how to win public sector contracts, the first step is knowing where to look. The main platforms are:

  • Contracts Finder: contracts from £12k+ (central government) and £30k+ (local authorities)
  • Find a Tender: higher-value procurements (usually above £139,688 including VAT)
  • Crown Commercial Service: major government frameworks

There are also sector-specific and regional portals worth exploring depending on your area of specialism.

 

Are You Procurement Ready?

Before you start bidding, it's worth making sure the foundations are in place. Buyers will expect to see:

  • A clear, articulate service offering
  • Relevant experience or case studies
  • Basic policies (equality, data protection, carbon reduction and so on)
  • Evidence of financial stability

Getting these basics right isn't complicated, but it does make a real difference to your success rate once you start submitting.

 

A Framework to Help You Approach It Strategically

Once you've identified your route in, the process of actually putting a bid together can feel like the next mountain to climb. It doesn't have to be. Through my work as an SME bid consultant, I developed the QUEST Framework to help businesses approach public sector bidding more strategically:

  • Qualify - identify opportunities genuinely worth pursuing, filter out the ones that aren’t
  • Understand - get under the skin of what the buyer actually needs, and be clear on who you’re up against
  • Engineer - design a solution that directly addresses those needs and plan your process for executing the bid
  • Substantiate - build your evidence, credibility and impact
  • Test - stress test and strengthen before you submit

It's a structure that takes the overwhelm out of the process and helps you focus your energy where it counts.

 

Is It Right for Your Business?

Public sector bidding isn't the right fit for everyone. But for the right business, it can offer something genuinely valuable: stable, multi-year revenue, real opportunities to scale, and the kind of credibility that opens doors elsewhere too.

The most important first step is simply understanding the market - how it works, what buyers are looking for, and whether it aligns with where you want to take your business.

That's exactly what I help founders do. If you're curious about whether public sector work could be right for you, feel free to get in touch.

 

Christina West is the founder of BidQuest and a UK bid consultant specialising in helping SMEs win public sector contracts.

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