SMEs and Small Businesses – winning government business

Author: 
John Sheridan - CIO & CISO

Finance has just finished analysis of AusTender procurement data for 2015-16, and we’ve published the annual statistics on our website

As always, the data tells the story. The evidence it provides is the foundation for good policy development.

The annual statistics continue to demonstrate the strong performance of Small and Medium Enterprises (SMEs) and small businesses in government procurement market. 

SMEs

  • By number, 61% (42,737) of the 70,338 contracts were awarded to SMEs
  • By value, 24% ($13.7 billion) of the $56.9 billion in total contract value was awarded to SMEs, and
  • For contracts up to $5 million, the SME share was 53% by value.

Small Business

  • By volume, 33% (22,883) of the 70,338  contracts were awarded to small businesses
  • By value, 10% of the $56.9 billion in total contract value was awarded to small businesses, and
  • For contracts up to $5 million, small businesses won 26% by value.

It’s also worth noting that SMEs represented 89% (9,595) of the 10,793 businesses which contracted with the Commonwealth during the financial year; small businesses accounted for 66% (7,132) of the total.

And a word of caution when comparing AusTender statistics:

  • All procurement contracts valued at or above $10,000 are reported on AusTender
  • An SME is defined as a business which has fewer than 200 employees and operates independently of any parent organisation for taxation arrangements
  • A small enterprise is defined as a business with fewer than 20 employees, and
  • SME statistics are based on direct contracts with the Commonwealth – they do not include sub-contracts.

If you have any comments on AusTender statistics, please let me know either below, or by email at haveyoursay.procurement@finance.gov.au.

Regards

John

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Last updated: 07 December 2016