Many owners or operators of Small to Medium Enterprises dismiss the possibility of looking for custom from within the Public Contracts area. The reasons for this are widely varied, but a common theme is that it can just be "too difficult", or that this kind of contract is only for the big boys.

While a large number of the contracts on offer are clearly only suited to the bigger players, this market is big enough, and diverse enough, to leave plenty of space for nearly everyone. One of its principal advantages is that the "Rules of Engagement", governed by EU Contract and Procurement laws, are designed to provide for fair and equitable treatment for all bidders. This effectively means that all potential suppliers - for a given requirement - have a more or less equal chance to compete on a level playing field.

Although contracts in the private sector rely largely on who you know, this applies to a much lesser extent in the Public Contracts area. That is not to say it's a waste of time getting to know your potential customers, but it has less of an influence. Like any other market you will seek to sell into, research of who is buying what, and at what frequency, is vital to defining your strategy. This information is widely available in the public domain. Where it is not published directly, it can often be obtained by the right enquiry or in response to questions under the Freedom of Information legislation. Under FOI it may be possible to find out very detailed information about the customers requirements, who the current providers are and when the current contract expires. In the case of Local Authorities the published minutes o various Committees may also provide some hints on how happy they are with current levels of service. Use the available websites to find out more

This market is also widely diverse, because Public Bodies are all required to use the processes and their outputs cover a wide variety of services, delivered by an equally wide variety of means, both In-House and Outsourced. Local Councils and their Housing Associations manage property, collect rents and repair property. They provide services for the homeless, for the elderly and for education. Just this small group of potential customers need a myriad of supplies and services to be successful. Where they undertake the work In-House they need supply of raw materials, where it is Outsourced they need to buy the complete managed service. Add the Health Services, Fire and Police and the wide range of other Public Bodies that exist. A picture emerges of a Market which trades in every imaginable commodity or service, and at every possible level of demand.

Some initiatives seek to provide more efficient procurement by consolidating the needs of various organisations into single large contracts, suitable for competition amongst the bigger players. However, many other initiatives and considerations also exist which advocate breaking down the requirement in order to make the market suitable for smaller traders, through sustaining jobs locally and supporting SME's and the local economy. The emerging consideration of the "Carbon Cost" of providing a service will weigh more heavily in favour of local provision in future.

At present the market in scotland is worth £8 Billion annually. Across the UK estimates vary between £125 and £200 Billion, depending on which big spending departments are included. Although all Parties recognise lower Public Expenditure will be needed in the future (to deal with the budget deficit), the outcome will still be a pretty big market with plenty of room to compete.

It is at least worth spending some time having a look to see what opportunities are there, and whether they might be worth pursuing.