Small business struggle in David V Goliath battle for government dollar

'I want to help s many small businesses as I can,' says Small Business Minister  Michael McCormack .
'I want to help s many small businesses as I can,' says Small Business Minister Michael McCormack . Josh Robenstone

Almost a third of federal government contracts worth $5.5 billion went to small businesses last financial year, in the David and Goliath contest for the government dollar.

The federal government aims to award to small businesses at least 10 per cent of its procurement budget in value.

But while the government met its target with 24 per cent of last year's $56.9 billion in government contracts going to small to medium enterprises, that proportion has been steadily declining from 28 per cent in 2014/15, 34 per cent in 2013-14 and 39 per cent in 2011-12.

Instead, Small Business Minister Michael McCormack focused on the more positive number of contracts - 33 per cent - going to small to medium businesses.

"Government procurement is a key focus of mine as Small Business Minister. I want to help as many Australian small businesses as I can get access to tender information to ensure small businesses are in the driver's seat of delivering government goods and services," Mr McCormack said.

Small business was particularly active in government contracts worth up to $5 million.

"In total, of the 10,793 businesses with which the government contracted up to a value of $5 million, small businesses accounted for more than two thirds," he said.

Big businesses continued to dominate in the big budget areas of military, health and infrastructure spending but small businesses had the best chance of winning tenders in the lower budget areas of editorial, design, and graphic art services, as well as management and professional services.

In recent years, small businesses have complained that by the time they see government tender notices on the government's Austender website, it is too late to apply.

Mr McCormack said he wanted to make more small businesses aware of tender contracts for which they can apply, and help diversify their business.

"As I meet with small businesses across Australia, I see first-hand how modern and adaptable businesspeople and their employees are a great asset on which we can rely for delivering government contracts," Mr McCormack said.

"Through greater awareness of AusTender and the Coalition government's commitment to fair and equitable access principles in government contracts, we can see even more Australians helping deliver the contracts and services we need into the future."