ABSTRACT
For the smaller enterprise, attempting to do business with government departments can be fraught with difficulties. Often it is a case of not knowing whom to approach or trying to meet exacting and unfamiliar quality-control standards, in addition to coping with a jungle of paperwork. Even where a company has the necessary capabilities to compete for contracts, the actual cost of bidding for business can, in itself, be prohibitive.
In recent years some of these problems have gradually been reduced by new government measures. For example, the MOD Small Firms Initiative which was set up in 1986, has sought out small companies, through chambers of commerce and enterprise agencies, in an attempt to encourage more contact and active involvement in defence business. In 1986 to 1987 small companies accounted for 13 per cent of UK defence equipment expenditure and a much larger share was taken by this sector via sub-contracting work for the larger (prime) contractors.
