Make London business fit for the Olympics

12.00.00am GMT Tue 21st Feb 2006

London's small and medium-sized businesses need more support from the Mayor and Olympics authorities to compete with multinational firms for contracts involved in the 2012 Games.

A London Assembly report1 today says the Olympics will only leave a lasting economic legacy for the capital if small firms are able to take part in the multi-billion pound procurement process.

Small businesses already face a lack of information, capacity constraints and red tape when bidding for public contracts. Although small enterprises would find it difficult to win major contracts, careful planning and support should help them secure subcontracts and smaller specialist tenders.

Dee Doocey AM, Chair of the Assembly's Economic Development Committee, said: "London's small firms must be allowed to compete for Olympic contracts if the Games is to succeed in achieving an economic legacy. Ninety-nine per cent of London firms are small businesses employing less than 50 people. This is a third of all employment in the capital. Their involvement in Olympics work is key to maximising the benefit of hosting the Games."

The Committee makes the following recommendations to help businesses profit from the Games:

Targets must be set for involving small firms in bidding for Olympic contracts, which are regularly monitored and published quarterly

An 'Olympic Mark' for firms that meet procurement requirements, similar to the kite mark

A 'one stop shop' website with information about Olympic business opportunities

The tendering process must be simplified, contracts need to be written in plain language and consistency across all tenders would reduce time spent applying for Olympics work

The Mayor must use his position as London champion on the Olympics Board to stress to all key stakeholders the importance of the involvement of the capital's small businesses. The Games organisers will need to work hard to minimise the negative impact of the relocation of some east London businesses.

Businesses themselves will also need to take an active role to ensure they can benefit from opportunities. Offering quality services at competitive prices and improving work practices to comply with requirements in procurement procedures.

Dee Doocey added: "There are examples of good practice where small firms have benefited from major developments, such as Canary Wharf, Atlanta's Olympics and Manchester's Commonwealth Games. These show what can be achieved with dedicated support and demonstrate lasting benefits for cities."