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Small businesses and social enterprises, which ministers want to deliver public services, have been given two strategic boosts. Two Whitehall departments have announced significant new measures aimed at increasing their involvement in the public sector. The small business sector has consistently argued that the high costs of procurement processes have frozen them out of the marketplace. Revelations of price fixing by construction firms involved with multimillion-pound public sector contracts have added to the pressure for reform. The Department for Business, Enterprise and Regulatory Reform has given British firms free access to its supply2gov website which lists public sector contracts valued under £100,000. David Hansom, a procurement lawyer at Eversheds LLP, said: ‘In the case of lower-value contracts, where there is no cross-border interest, increased access is good news for SMEs.' The move followed the announcement of a new programme by the Cabinet Office to standardise and improve how social return on investment (SROI) is measured. The aim is to encourage City financiers looking to diversify into ethical investments to invest in social enterprises. The move would boost the ethical business sector, worth around £30bn, and help commissioners of public services take better account of the social value of a service when tendering for a contract. Charities and not-for-profit firms find it difficult to attract the level of backing needed to compete with major players. Third Sector minister, Phil Hope, said: ‘Social enterprises and other third sector organisations play a vital role in improving peoples' lives as well as the environment. Like any firms, they need access to finance. This will enable them to demonstrate their impact to investors and public services and help attract funding.'

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BUSINESS

Small firms get Whitehall boost

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