Procurement: SME and third sector action plan 2024-2026

Scottish Public Sector Procurement Spend with SMEs and Third Sector Organisations

• Over the course of the financial year (FY) 2021– 2022, the Scottish public sector continued to do much of its business with SMEs from Scotland, elsewhere in the UK, and further afield. During this period, the total Scottish public body procurement spend with SMEs, regardless of location, was £6.4 billion. This amounts to 44.2% of all spend (where business size is known).
• More specifically, when we consider the procurement spend that took place with suppliers based in Scotland, we learn that SMEs accounted for over half (54.9%, or £4.2 billion) of this spend – and this £4.2 billion of spend can be accounted for by some 16,828 SME suppliers. The largest share (£2.6 billion) of SME spend was with medium-sized businesses, followed by small businesses (£1.2 billion) and micro businesses (£449.2 million).
• It is estimated that, during the 2021 to 2022 FY, the Scottish public sector spent around £1.1 billion with third sector organisations in Scotland. This equates to around 12.5% of all Scottish public body procurement spend in Scotland and is an increase from the £944 million spent in the previous reporting period.