SMEs expect to come second in 2012 Olympics

[Fiona]

Directors of small and medium-sized companies want to help make the London Olympics a success but do not believe they have the information necessary to enable them to bid for contracts. The principal complaint is that companies are confused about the timescale of the procurement process and who is managing it. There is also a feeling that the biggest companies will monopolise the major contracts. Many of those firms which are negative about winning tenders themselves say they lack experience of preparing bids for public contracts in general. Others are deterred by the perceived costs and complexity of the bidding process.

The findings come from a report by the London Chamber of Commerce and Industry (LCCI), sponsored by KPMG, which conducted detailed interviews with the directors of 37 businesses in London and the South East. The respondents included medium-sized firms such as Cobra Beer and City Cruises as well as multi-nationals such as Royal Mail and Thames Water. The report shows that the business community, which gave strong support to London 2012 throughout the bidding process, is still right behind the Games.

All company directors interviewed expect the Games to be a success and nine-tenths expect their own firm to benefit from the Olympics. Most expect the benefits to accrue indirectly, however, from larger contractors seeking to source supplies for example.

KPMG Partner Alun Bowen said: "The legacy that the Games will bring to London is not just restricted to the acceleration of the development of London's infrastructure and leading-edge sporting facilities, but it will also provide huge opportunities and a major confidence boost for London's smaller businesses in generating jobs and improving skills for their workforces."

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