Small, medium and regional businesses are reaping the benefits of the NSW Government’s Small and Medium Enterprise (SME) and Regional Procurement Policy, with the NSW Government spending more money with SMEs and regional businesses.
In the 12 months since the policy commenced on February 1, 2019, spend with regional suppliers increased by 19.6 per cent or $255 million, while spend with SMEs increased by 3.8 per cent or $337 million from the previous year.
Finance and small business minister Damien Tudehope said the SME and Regional Procurement Policy was helping family businesses and entrepreneurs to supply goods and services to the NSW Government, often for the first time.
“We introduced the policy to encourage NSW Government departments to keep SMEs and regional suppliers front of mind when making procurement decisions,” Mr Tudehope said.
“These businesses are the backbone of their communities and by giving them the opportunity to supply to government we are helping support sectors hit hard by natural disasters, such as drought, bushfires, floods, as well as Covid-19 in the past year.”
Mr Tudehope said the NSW Government engages more than 52,000 SMEs and more than 24,000 regional businesses a year.
“That means local tradies and other suppliers are picking up government work and keeping jobs in their local area,” Mr Tudehope said.
“If we support these businesses to grow, they will support jobs, families and communities as we move towards a post-pandemic NSW.”
The policy requires government agencies to first consider buying goods and services from an SME or a regional business for all direct procurements up to $250,000.
The Small Business Exemption allows Government agencies to buy directly from small businesses for any purchases up to $50,000 even if there is a mandated whole-of-government contract in place.
For more information on the SME and Regional Procurement Policy, go to https://buy.nsw.gov.au/policy-library/policies/sme-and-regional-procurement-policy