A new report from the Federation of Small Businesses (FSB) has revealed that many small firms which are in the supply chains of public sector projects suffer as a result of late payment.
The study suggests that 25% of small businesses in public supply chains have experienced late payment more than 50% of the time, while only 12% have been provided with the necessary skills to support them.
The FSB has called on the government to introduce reforms to public procurement, in order to promote best practice and help ensure that large government suppliers pay on time.
According to FSB Chairman, Mike Cherry, recent market failures highlight the need to improve supply chain practices.
Mr Cherry commented: ‘Healthy supply chains are a win-win for businesses and tax payers as they create genuine competition, drive productivity, help close skills gaps and fuel economic growth’.